May will have to negotiate Brexit in EU and at home

Significance

The next challenge for UK Prime Minister Theresa May is to reconcile the requirements laid down by the EU and domestic political pressures in progressing the Brexit talks still further.

Impacts

• The EU’s proposals would not allow the United Kingdom to sign trade deals before the end of transition.
• A Canada-style trade agreement would damage the United Kingdom’s services sector.
• Failure to negotiate a transition period within the next few months could lead to some companies beginning to relocate.