Exit talks may not clarify future UK-EU relationship

Significance

Prime Minister Theresa May has committed herself to triggering Article 50 by the end of March 2017. No member state has made use of Article 50 and there is thus much uncertainty about what leaving and, more specifically, triggering Article 50 might involve.

Impacts

• May's timetable could be derailed if the Supreme Court decides that the government cannot invoke Article 50 without parliamentary approval.
• The EU is likely to maintain its firm stance and refuse to engage in any negotiations before Article 50 is triggered.
• The continued uncertainty over the terms of Brexit is likely to hit business confidence and could deter investments.