With UK Parliament resuming after the Easter recess Brexit is set to return to the headlines.
Although the extension was granted by the EU through to the end of October there are dates ahead that, while not deadlines, are significant points that could mark the UK exit.
The first is May the 23rd - European Parliament elections - which many members of the government (and opposition) are keen to avoid by exiting prior. We'll see how that goes, but there is potential and it will be a focus.
Via Lloyds Bank analysis of the poltics ahead:
Political headlines are the main risk for GBP.
- Meanwhile, Parliament reconvenes today as cross party talks between the Conservatives and Labour are ongoing. In a recent interview, David Lidington (frequently described as PM May's de facto deputy), said that both sides were testing out each other's ideas as they try and resolve the deadlock. The intention he suggested was to "take stock" when parliament returns. Lidington claimed that the two parties were not far apart, but that a deal would require "movement on both sides." However, reports suggest that progress has now stalled.
- That points to the likelihood of the Government exploring alternative plans. Some observers are suggesting that PM May could have a final attempt to get her deal through the House of Commons. If that fails, indications are that a series of votes would again be held to test whether any deal is able to command a majority in the House. At least one media source is suggesting that this would include a vote on some sort of customs union.
