United Kingdom election: Polish Deputy PM hopes for 'softer' Brexit

Share

Meanwhile, the European Parliament's Brexit co-ordinator, Guy Verhofstadt, voiced his frustration with the snap election called by Theresa May. Like Cameron, she was wrong.

The EU chief Brexit negotiator, Michel Barnier, said talks should begin when the U.K.is ready. "Let's put our minds together on striking a deal".

The timeline for the UK's exit from the European Union is now up in the air - as the Conservatives face a challenge to form a coalition government.

Irish officials on Friday were not reassured that the United Kingdom is moving closer to their position, although there may be some comfort in comments by Brexit secretary David Davis to Sky News that the election was, in part, about getting a mandate for "the sort of Brexit we want".

"As far as the commission is concerned, we can open negotiations tomorrow morning at half-past nine", he said.

A hung British parliament is possibly the worst result in the eyes of the European Union.

S&P Global further added that the election results will "likely delay Brexit negotiations", and has not dismissed the possibility of another snap election being held.

"Maybe there won't be a hard Brexit", Norwegian Foreign Minister Boerge Brende said.

"The time-frame set by Article 50 of the Treaty leaves us with no time to lose".

More news: John McCain's line of questioning baffled almost everyone, including James Comey

However, the lack of mandate for the Conservatives increases the chance of a softer Brexit (staying in the single market) and this will provide some comfort to many and may steady both the currency, bond and equity markets.

Apart from dealing with Brexit - in itself the biggest challenge the country has faced since World War II - the new government has to address Britain's acute growth problem. "The date of the start of negotiations is uncertain now". It appears clear that, whatever their private fury with Ms May for putting Brexit in peril, the Brexiteers believe the only way to save the exit timetable is to shore her up. Sterling dropped 0.3 percent versus the dollar Friday as election results came in, in its third day of declines.

Throughout the election campaign, the British PM has repeated that Brexit negotiations begin 11 days after the General Election.

With no clear victor emerging from Thursday's election, Prime Minister Theresa May was fighting to hold on to her job on Friday, having failed to win the stronger mandate she had sought to conduct exit talks with the rest of the European Union and instead weakening her party's grip on power.

It said it was "monitoring the UK's process of forming a new government and will assess the credit implications in due course".

Some EU officials had voiced hope that a stronger majority for May could allow her to make more concessions in the negotiations.

Before her defeat, May said she wanted to negotiate the divorce and the future trading relationship with the European Union before Britain leaves in March 2019, followed by what she calls a phased implementation process to give business time to prepare for the impact of the divorce. The risk of having no deal worries some in Britain, particularly businesses. Tariffs would also immediately be imposed.

No deal would also lead to a regulatory no man's land where standards wouldn't be recognised, and many products - including medicines - would no longer be accredited for sale.

Share