Now that the UK referendum is in the history books, two of the most pressing questions currently facing the UK are who will succeed David Cameron as the next Prime Minister, and how quickly will that person push to invoke Article 50, officially triggering the negotiations with the EU for an exit.
Recently, two leading candidates to become the next British Prime Minster presented two different views on the subject of Article 50 and how quickly the UK should move forward.
Home Secretary Theresa May, the candidate who quietly backed "Remain" during the referendum process, said in an interview with ITV that she believes that the UK shouldn't invoke Article 50 before the end of the year. According to Reuters has established an early lead, gaining the support of more than 100 lawmakers. Critics of May claim that the next leader should come from the "Leave" side of the EU debate, but May vowed to honor the vote when she launched her bid.
"I don't think it's possible to say there's an absolute deadline, because what's important is that we do this in the right timescale and that we do it to get the right deal for the UK. So I've said that we shouldn't invoke Article 50 immediately. I've said it shouldn't be before the end of the year."
Reuters reports that May went on to say "We've got to be clear about what our negotiating stance is before we trigger Article 50, because once we trigger it then all the processes start"
Conversely, Junior Energy Minister Andrea Leadsom, who backed "Leave" during the referendum wants to move more quickly, saying in an interview with BBC that "we need to get on with it," and give certainty as to the plan going forward.
"What I do believe is that we need to get on with it. We need to seize the opportunity, it's not just about leaving the EU but it's about giving certainty to businesses, it's about saying to the world 'we're open for business, let's get some free trade agreements started as soon as we can."
As Reuters explains, Leadsom, the former banker, was one of the most passionate advocates of Brexit but is not well known to many Britons. Leadsom is eclipsing senior colleague Michael Gove, who is struggling to maintain favorability due to what many firmly believe is a betrayal of former London mayor Boris Johnson by announcing his candidacy.
Gove, according to the Financial Times, doesn't believe Article 50 should be triggered until at least next year.
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Five candidates are vying to succeed Cameron as Conservative Party leader and Prime Minister, and the field will be narrowed down to two by the party's leaders over the summer before a winner is selected by September 9. The speed in which Article 50 is invoked will depend in large part on who is selected to lead the UK into the future, and until then, the financial markets will have to continue to completely guess as to how this will ultimately play out.
No worries though, all of the central banks stand at the ready for the next round of easing, so everyone should be able to sleep better at night no matter when Article 50 is invoked.
via http://ift.tt/29cQHWM Tyler Durden