According to Bloomberg Cameron, the current prime minister is not going to call for the article 50 that will initiate process of the UK resigning from the EU. It will be done by the incoming prime minister after Cameron leaves in three month’s time. Once the article 50 is called we have a negotiation period ahead during with the terms of the exit will be negotiated. The negotiations are likely to have a great impact on GBP as the terms of UK trade will be impacted significantly by what will be agreed. Therefore in the interim the news related to these negotiations should be important market movers.
What’s ahead of the EU is just uncharted territory. No member state has never left and Article 50 of the EU treaty was really created not to be ever used. That’s why this Article that sets out how a state can exit the bloc, offers quite little details. There is a two year period over which the exit terms will be negotiated but some believe it will take longer to establish a new trading relationship UK and the EU.
Reuters reported that Cameron will resign by October and leave it to his successor as leader of the Conservative party to notify the Union that Britain is leaving by invoking Article 50. That will set that two-year clock ticking and the EU itself cannot, officials believe, trigger the process itself. Some in the EU want the process to start more quickly and are concerned about suggestions from Brexit campaigners that they might prefer to open new negotiations before triggering Article 50.
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