What’s clear, however, is that in the short term, the pound will be allowed to collapse to assist the ‘Remain’ case. As the media focuses on the pound falling it neglects the pound is now more attractive to U.S. investors.
Nigel Farage wants to help Boris Johnson deliver Brexit. Boris should accept the offer gratefully.
In his maiden speech as prime minister on Wednesday, Boris Johnson repeated that the U.K. will “come out of the European Union on October 31st, no ifs or buts.”
Unable to unite her Conservative Party, let alone secure a majority in Parliament, May ended up not having the political clout to shift negotiations with the EU out of a “no-war, no-peace” battle of attrition. As such, it was virtually inevitable that that the U.K. would end up forced to negotiate a series of deadline extensions with its European partners. The EU, for its part, was unable to impose an orderly Brexit on the U.K., let alone a return to the status quo ante (“remain”). Neither was it willing to force a hard Brexit.
By having run on a less ambiguous Brexit platform, and by having been elected leader of his party by an overwhelming majority, Johnson has put down a clear come-what-may marker for the EU. If he can also convey a sense of parliamentary unity behind his position, he should be able to force the EU into compromise -- that is, the EU agreeing to a multi-stage process that combines a formal Brexit on Oct. 31 with various transitional agreements to minimize the risks of a disorderly exit process.
While he is better placed than his predecessor, Johnson’s all-or-nothing approach is far from obstacle-free. Indeed, we need only look back at how last spring’s European Parliament elections -- which neither side wished to contest while negotiations remained paralyzed -- failed to force resolution. Also, the British Parliament remains divided, as does the nation.