Britain headed for a chaotic divorce from EU: Peter Cardillo, Spartan Capital

Peter Cardillo of Spartan Capital Securities speaks on the Brexit gridlock | Exclusive
March 28, 2019
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Britain headed for a chaotic divorce from EU: Peter Cardillo, Spartan Capital

Option for a second referendum was probably open to them in the first year or so, says Cardillo.

UK hardly has time for a second referendum. A messy divorce is right around the corner, said Peter Cardillo, Chief Market Economist, Spartan Capital, in an interview with ETNOW.

Edited excerpts:

Theresa May’s proposals on Brexit have been shot down once again and that too at a time when they are grappling with a very crucial deadline. What’s your view?

Yes indeed and it does look like Britain is headed for a chaotic divorce from the EU and of course May has basically made it known that she is likely to step down and as a result of that, the situation is even more complicated.

I do not know what that would mean in terms of the EU and if they would allow an extension above the days that they already extended. We will have to wait and see because if she resigns, then that would open up a new kind of crisis and that could complicate the matters even further. It is not a pretty situation. The markets will most likely react on the negative side to that.

The Brexit minister has said majority support of Prime Minister’s deal is the best option. Would the parliament go ahead and let Theresa May’s Brexit deal sail through another vote or are they determined to figure out a way by themselves and complicate the entire matter?

It has gotten much out of hand and it probably means they are going to complicate the matter even more than what it is now. There is too much opposition and when you reach that point, it becomes rather difficult to see what will really happen.

The only thing I can think of at this time is that may be at the end, parliament will come to its senses and get a divorce that is not going to disrupt their economy and the economy of EU as well because it is not a one-way street. Everyone is going to suffer here. With all the setbacks over the past six to seven weeks, it almost seems that a chaotic divorce is written in stone at this time. Although it is not, but it seems that way.

Do you think there is a possibility of another referendum on Brexit?

I do not know. That is one of their options but would the EU accept that? Look at all of the documentations that the EU has released. They have only said there is no turning back. Once you say you are out, you are out. Those options were probably open to them in the first year or so. After that, when they shut tight, I do not know what it means. If they had a second referendum, will they have time?  Time is running out and the divorce is right around the corner.