With Carney warning of 1970s-style shock, UK firms ready for no-deal Brexit

With Carney warning of 1970s-style shock, UK firms ready for no-deal Brexit

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LONDON – Companies began triggering plans to keep operating if Britain leaves the European Union without an agreement, a “no deal” scenario the Bank of England said could plunge the economy into a crisis not seen since the 1970s.
With less than five months before Britain leaves the bloc, Prime Minister Theresa May is struggling to persuade parliament to back a draft divorce deal agreed with Brussels last week.
She won the backing of Bank of England Governor Mark Carney, who warned that a no-deal Brexit could hit the economy in a way not seen since the oil crisis that pushed many western nations into recession just after Britain had joined what is now the EU in 1973.
But the warnings and a charm offensive launched by May to court public opinion have done little so far to win over her critics, who are trying to force her to change tack over Brexit, Britain’s biggest policy shift in more than 40 years.
Northern Ireland’s Democratic Unionist Party, which props up May’s minority Conservative government, again said it would vote against her deal in parliament.
“All of our efforts are directed along with a large number of Conservative MPs from both the remain camp and the leave camp as well as opposition parties to defeat this deal and force a rethink,” the DUP’s Brexit spokesman Sammy Wilson told Sky News when asked if his party would bring down May’s government.
But the party’s deputy leader, Nigel Dodds, softened the tone, by leaving open the possibility of the party continuing to support May’s government on domestic issues.
The prime minister was banking on opposition to what is a draft divorce deal fading after an attempt to unseat her by pro-Brexit Conservatives seemed to be fizzling out. As an olive branch to those Brexit campaigners, her spokesman signaled May was open to looking at their proposed technological solutions to keep the border open on the island of Ireland.
For now, it was business as usual for May. She will meet European Commission President Jean-Claude Juncker in Brussels on Wednesday to discuss an agreement on future ties before EU leaders are due to rubber-stamp the divorce deal on Sunday.

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