UK cabinet approves draft Brexit deal
The key takeaways
- The cabinet of the UK government has backed a draft withdrawal treaty outlining terms for the UK's departure from the European Union (EU)
- This represents a significant milestone in securing a smooth Brexit. Nevertheless, there remain significant hurdles, including ratification by UK parliament
- If the agreement is rejected by UK parliament, and the Article 50 negotiating period is not extended beyond next March, there could still be a "no deal" Brexit
- There is still uncertainty over whether the UK parliament will ratify the agreement. For multi-asset portfolios, valuations point us to remain neutral UK equities, and underweight in gilts
UK cabinet backs draft Brexit treaty
The cabinet of the UK government has backed a draft withdrawal treaty outlining terms for the UK's departure from the European Union (EU). This ends months of uncertainty over whether or not the UK and EU could agree the exit terms, ahead of the UK's scheduled exit from the bloc on 29 March 2019. Table 1 outlines some of the provisions contained in the draft agreement, based on initial media reports.