The Latest: Spain fears Britain will crash out of EU
Spain’s caretaker government says that Theresa May’s announcement she is stepping down as leader of Britain’s Conservative Party is “bad news” because it will make a “hard Brexit,” where the country leaves the EU without a deal on future relations, more likely.
The pound and British stocks are rising after Prime Minister Theresa May announced her resignation, as some investors appear to hope it could unblock the political stalemate over Brexit, though analysts warn it could simply mean another delay to the EU departure.
The Conservative Party will tap a new prime minister after May leaves on June 7 and it is more likely that the next leader will be more in favor of Brexit. However, experts say a “no-deal” Brexit — in which Britain leaves the EU without a deal on new trade relations, causing havoc for business — remains unlikely as lawmakers remain divided over how to proceed.