UK business community concerned about political crisis after PM's decision to suspend parliament

Source:Xinhua Published: 2019/8/30 9:40:50

Britain's business community continued to monitor the unraveling political crisis Thursday as the war of words over Prime Minister Boris Johnson's decision to suspend the British parliament intensified.

The Director General of the British Chambers of Commerce (BCC) Adam Marshall said business in Britain felt like Westminster is playing an endless game of political chess, while the futures of business and the health of the UK economy hang in the balance.

Johnson has won consent of Queen Elizabeth to suspend, or prorogue the British Parliament for nearly five weeks in September and October.

Critics say it is a move by the British prime minister to reduce the chances of MPs in the House of Commons from blocking his option of a no-deal Brexit if London and Brussels fail to reach a deal by Oct. 31.

Marshall said: "Every move in this game is prompting more questions, not just amongst businesses here at home but also amongst their partners around the world. Out in the real world, continuing political turbulence is taking a toll on contracts, on investment decisions, and on business confidence. Three years on, the damage continues."

He said the top priority for businesses and the economy remains to avoid a messy and disorderly exit from the European Union (EU) on Oct. 31.

"Despite the noise, none of the events of the last few days have given businesses greater confidence that this will be achieved," he added.

Marshall said: "Once again, businesses will have to try their best to prepare for an unclear future as the political process goes down to the wire."

Meanwhile the Confederation of British Business (CBI) commented: "Whatever happens in Parliament, the focus remains the same. No matter how much preparation the government and businesses do for no-deal (Brexit), only a good deal with the EU protects jobs, communities and the economy. This must be the relentless focus of politicians in the UK and the EU."

Frances O'Grady, general secretary of the Trades Union Congress (TUC), which represents millions of workers, described Johnson's decision as a deliberate ploy by the prime minister to duck basic democratic scrutiny, at a time when people's jobs and livelihoods are on the line.

She said: "By denying parliament a voice, this government is treating the people with contempt. The effects of crashing out of the European Union without a deal would be felt for a generation."

O'Grady said the TUC will support any democratic initiative to stop a disastrous no-deal Brexit whether through legislation, a general election or a popular vote.

British newspaper the Guardian, in its business section, quoted several city economists and investors voiced concerns over Johnson's move to suspend the British parliament. One expert warned Britain faces a "constitutional crisis", while Seema Shah of Principal Global Investors warned Britain could be dragged into recession.

Adam Cole of Royal Bank of Canada said a no-deal Brexit looks more likely than before, at around 44 percent probability, based on market data, Deutsche Bank put the chance at 50 percent, according to the Guardian.

Posted in: EUROPE

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