May needs momentum for Brexit deal to pass

Significance

This follows the defeat of the Brexit Withdrawal Agreement (WA) for a second time on March 12. Despite parliamentary support, an extension poses risks to all parties and positions on Brexit. Prime Minister Theresa May will look for newfound momentum for the WA, which will encourage others to support the deal and get it over the line.

Impacts

• If MPs reject the WA and EU leaders demand national concessions in return for extending Article 50, a no-deal Brexit could happen.
• Businesses are running out of resources to prepare for worst-case scenarios; an extension to Article 50 could force some to close.
• Given a long extension, there may be more willingness in the next European Parliament to reopen the WA.