May dealt yet another crushing Brexit defeat

British lawmakers crushingly rejected Prime Minister Theresa May’s deal to quit the European Union on Tuesday night, thrusting Brexit into turmoil just 17 days before the planned departure date.

Lawmakers voted against May’s amended Brexit deal by 391 to 242 as her last-minute talks with EU chiefs on Monday to assuage her critics’ concerns proved fruitless.

The vote puts the world’s fifth largest economy in uncharted territory with no obvious way forward; exiting the EU without a deal, delaying the March 29 divorce date, a snap election or even another referendum are all now possible.

May might even try a third time to get parliamentary support in the hope that hardline eurosceptic lawmakers in her Conservative Party, the most vocal critics of her withdrawal treaty, might change their minds if it becomes more likely that Britain might stay in the EU after all.

While she lost, the margin of defeat was smaller than the record 230-vote loss her deal suffered in January.

Lawmakers will now vote on Wednesday on whether Britain should quit the trading bloc without a deal, a scenario that business leaders warn would bring chaos to markets and supply chains.

May said the government would not instruct her own party’s lawmakers how to vote.

An opposition Labour Party spokesperson said this meant she had “given up any pretence of leading the country”.

The prime minister, hoarse after Monday’s late-night talks, told lawmakers: “Let me be clear. Voting against leaving without a deal and for an extension does not solve the problems we face.”

She said parliament was now at an impasse.

“Does it wish to revoke Article 50 [announcing the intention to leave the EU]?

“Does it want to hold a second referendum?

“Or does it want to leave with a deal, but not this deal?”

Sterling, which had earlier in the day fallen by 2% to $1.3005 (R18.66), was trading at about $1.3086 (R18.77) shortly after the vote.

Supporters of Brexit argue that while a “no-deal” divorce might bring some short-term instability, in the longer term it would allow the UK to thrive and forge beneficial trade deals across the world.

However, parliament is expected firmly to reject a “nodeal” Brexit as well, so lawmakers would then vote again on Thursday – on whether the government should request a delay to the leaving date to allow further talks.

Both May and the EU have ruled out any other changes to the deal, struck after 2½ years of tortuous negotiations.

“There will be no third chance,” European Commission president Jean-Claude Juncker said earlier.