This is an OZY Special Briefing, an extension of the Presidential Daily Brief. The Special Briefing tells you what you need to know about an important issue, individual or story that is making news. Each one serves up an interesting selection of facts, opinions, images and videos in order to catch you up and vault you ahead. WHAT TO KNOW What happened? The U.K. had been bracing for a parliamentary vote on Prime Minister Theresa May’s Brexit deal tomorrow, Dec. 11 — until, that is, the government suddenly postponed it today, triggering a fall in the British pound to its lowest level in a year and a half. The vote was expected to go poorly even though both May and EU leaders have said this is the only deal on offer. It was, therefore, considered the only alternative to a no-deal Brexit, which experts warn could shrink the U.K. economy by as much as 9.3 percent over the next 15 years. But a ruling this morning from the European Court of Justice (ECJ) found that the U.K. can unilaterally change its mind about leaving the EU before its expected drop-out date of March 29, 2019, which until now had been an open question. That ruling could drastically change the calculus of support in Parliament for May’s deal — rather than voting for the deal as a way to avoid no deal, those who prefer to remain may vote against the deal to increase the likelihood that Brexit could be canceled altogether. Legally, Parliament must vote on the deal at some point before Jan. 21 — and House of Commons Speaker John Bercow has said Parliament should get a vote on whether or not to cancel the Tuesday vote after all. Why does it matter? A no-deal Brexit would likely cause turmoil in countless sectors, with businesses warning of shortages, stockpiling and potentially even rationing. But both hard Brexiteers and Remainers have expressed contempt for May’s bill, which allows Europe more control than Brexiteers would like and, from a Remain perspective, is more economically damaging than staying in the EU. Whenever it happens, the vote is unlikely to pass, and no second vote is guaranteed. But the predicted market turmoil of the bill failing to pass could spook MPs into voting for it if a second vote is called. Meanwhile, the Labour Party is expected to try to force a general election, which is likely to fail, or demand a second referendum that could allow Britain to stay in the European Union. |