the May government crisis worrying for the business community

The worsening of the crisis in Theresa May's government torn apart by Brexit is likely to increase business fears, which have been demanding business stability for months.

Three days after a crucial meeting from May's team, which had adopted a new common position for EU exit negotiations with Brussels, the Conservative government was plunged into turmoil.

Two Eurosceptic heavyweights from the cabinet resigned: the Minister of Finance Brexit David Davis Sunday night and Foreign Minister Boris Johnson Monday afternoon. The balance of May's government, a subtle balance of supporters of a compromise solution with Brussels and supporters of an uncompromising line, seemed more than ever on the razor's edge.

Thermometer of Market Confidence in the British economy, the pound sterling immediately dropped after the announcement of turbulent Boris Johnson. At 1440 GMT, the British pound was worth 1.3257 dollars against 1.3283 dollars Friday around 2100 GMT, and one euro was 0.8867 pounds, against 0.8843 pounds Friday.

"The resignation of Johnson is an important event on the market, it is a shock and a 180-degree change from the interested party that seemed to support the proposals put forth at Checkers, "the Prime Minister's country residence where the meeting was held on Friday, explained David Cheetham, Analyst at XTB

Following a 12-hour meeting on Friday, Conservative Prime Minister Theresa May obtained her government's agreement on the broad outlines of her planned Brexit goals at the end of March.

These proposals, which must be detailed in a "white paper" published on Thursday, provides for a free trade zone for goods between the United Kingdom and the EU and a new customs model with the 27, so to maintain u n "friction-free" trade with the mainland.

But Johnson's resignation "means that Davis's departure is not isolated, the chances of Ms. May's leadership being challenged have increased. important way, "added Mr. Cheetham.

Concerns of the Financial Sector

The business community, however, had rather welcomed the outcome of the Checkers talks and the somewhat more flexible approach of Theresa May's government to Brexit.

Carolyn Fairbairn, Director General of the CBI employers' confederation, had seen in these proposals "a step in the right direction" Monday morning on the BBC. But she also added that the resignation of Mr. Davis was already a "blow" for Ms. May – even before the announcement of the departure of Mr. Johnson, which may profoundly destabilize his authority.

The Minister of Finance Finance, Philip Hammond, a spokesman for the business community in the government, said May's new line was protecting "jobs and prosperity" and had "all its support."

But even If May has quickly named Davis' successor, Eurosceptic Dominic Raab, the business community will be worried about the risk of the government falling, less than nine months from the planned exit date. [19659002] Several large companies have recently been stepping up to put pressure on Ms. May to take a more pro-trade stance. Airbus, BMW, Jaguar Land Rover or Siemens had warned that they could reduce their investments in the country if the Brexit was to lead to the restoration of customs controls with the EU.

Sunday, a hundred entrepreneurs have still written an open letter asking the government to stay purely and simply in the customs union. Signatories included leaders of Pret and Domino's, Zoopla (real estate) and Net-a-porter (clothing).

The new government proposals released on Friday night contain little new information about the future. of the major services sector, which particularly worried the representatives of the powerful financial sector of the City of London.

The European Commission has so far been very reluctant to integrate the issue of a free trade agreement between Brussels and London, from the moment the United Kingdom leaves the European single market.