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The mood changes on Brexit but the devil will be in the detail

October 11th, 2019

A UK Brexit by the end of the year now 38% betting favourite

Judging by today’s front pages the prospect for a deal on the UK’s withdrawal from the EU look better than ever. Certainly Johnson’s meeting with his Irish counterpart on the Wirral yesterday looks very promising but at the moment we do not know exactly what concessions have been made and whether that will be acceptable to the DUP.

A political problem of course is that there are two communities in Northern Ireland, but that only one of them the protestants, sends MPs to Westminster. Sinn Fein competes in elections and wins a clutch of seats which it never fills.

There’s also been the issue that Stormont has been suspended for nearly two years because of the failure of the DUP and Sinn Fein to agree. One positive thing of the current situation over Brexit is that it might get the Parliament in Belfast functioning again.

A key part of the the Good Friday Agreement in 1998 was that both communities should share power and that has not always been easy to achieve.

The DUP, which got just 36% of the Northern Irish vote at the last general election has always made its red line that this part of the UK should not be treated differently from other parts. How they will react to what was discussed yesterday day is is a big question though so it is going to be hard for them to oppose something that that has wide agreement elsewhere.

One thing we do know know is that the overall agreement has to be sanctioned by the House of Commons something that Theresa May struggled to achieve and failed three times.

I think we could now see see opponents of Brexit at Westminster seeking to ensure that the deal is agreed by a confirmatory referendum. It becomes harder to argue against that once we know exactly what is involved. 

The mood on the Brexit betting markets has changed but it is still only a 38% chance on the Betfair Exchange that the UK will leave the EU by the end of the year. Before yesterday it was about 30%.

Mike Smithson