A Brexit Recap: What's Next?

Since winning the U.K. general election Dec. 12, Prime Minister Boris Johnson has been busy renegotiating a Brexit deal. Johnson took over from Theresa May in July. 

Next Steps For Brexit 

The U.K. government has said a Brexit deal has been agreed to in principle with the European Union. 

On Dec. 20, Johnson secured a historic parliamentary victory that paves the way for departure from the EU.

Both the U.K. and the EU need to approve and sign the withdrawal agreement. The next step will then be to negotiate new arrangements.

A transition period will take place to prepare for new rules. The U.K. could still leave with no deal if the withdrawal agreement is not approved by Jan. 31 or at the end of a transition period. 

Johnson’s predecessor May was unsuccessful with her Brexit bill before officially stepping down June 7.

If the agreement is approved and passed into law, it would mean that the U.K. would leave the EU Jan. 31, exactly three-and-a-half years after the 2016 referendum. 

"Truth be told, I felt deeply hurt when you decided to leave. Three years later I am just sad that a member of our family wants to sever our ties," European Commission vice-president Frans Timmermans wrote a letter to The Guardian " But at the same time I find comfort in the thought that family ties can never really be severed. We're not going away and you will always be welcome to come back."

Price Action

The iShares MSCI United Kingdom Index EWU was down 0.5% at $33.81 at the close Monday.

The Vanguard FTSE Europe ETF VGK was down 0.78% at $58.19. 

Related Links:

UK PM Johnson Battles To Push Brexit Deal Through

As Brexit Deadline Approaches, What's Next For UK?