Prime Minister Theresa May’s speech details the country’s plans for Brexit.
On Tuesday 17th January, Theresa May revealed that as part of the country’s withdrawal from the EU, it would also be be withdrawing from the single market. The European single market aims to unite all countries in the European Union by ensuring “four freedoms”: freedom of goods, services, capital and labour. More on the single market can be found here.
These are the key points from Theresa May’s speech:
- The UK will withdraw from the single market and customs union
- It is hoped there will be a “phased process of implementation”
- The final deal will go to a vote in both Houses of Parliament
- The UK will leave EU without an exit deal, if a “good” deal for the UK cannot be agreed
- The UK will reintroduce immigration controls on EU citizens and there will be no unilateral guarantee to EU nationals resident in the UK
- The common travel area between the UK and Ireland will stay in place
Affect on The Pound
After May’s speech, the pound increased by 2.6% against the dollar, reaching $1.23. This was the largest daily rise since 2008. This in turn led to the worst day in over 2 months for the FTSE 100, which has closely tracked the movement of sterling of late. As the index is made up largely of multinational companies, a weak pound is more beneficial as it increases the competitiveness of their exports and increases the value of foreign earnings.