Merkel assumes United Kingdom to stick with its Brexit plan

European Union states are getting impatient about the delays in the Brexit talks, with some warning Friday after Britain's inconclusive election that the country should not be given more than the allotted two years to settle its divorce.

She told media that she wanted to get to work quickly on talks over Britain's separation from the European Union. We will defend the interests of the 27 member states, and Britain will defend its own interests.

Standard and Poor's (S&P), Fitch, and Moody's, are closely monitoring the political and economic fallout from the United Kingdom general elections results announced on Friday (June 9).

Also on Merkel's agenda was the Qatar crisis.

The German EU commissioner, Günther Oettinger, said the bloc needed "a government that can act".

As Oettinger put it: "I expect more uncertainty now". But with a cabinet reshuffle and new Brexit goals likely following the election result, that timetable now seems unrealistic in Brussels.

Most European capitals had believed May would be returned to government with some form of majority, and expected that to lead to at best hard talks, and at worst a breakdown of the negotiations possibly as early as this summer. "So we have 15, or 16 more months".

"I don't think we should talk about some prolongation of the deadline", he said in Prague.

However, it remains hard to see how a government can deliver a soft Brexit when any concessions the EU may extract for considerable access to the Single Market would surely involve accepting the Union's "four freedoms" [free movement of goods, free movement of workers, free movement of capital, and freedom of establishment and to provide services]. "We should not waste any time", Roth said.

In the wake of last year's Brexit referendum, called and lost by Prime Minister David Cameron, Britain's Conservative party took a long time to reorganize itself before it finally triggered the Brexit negotiations on March 29. France's European Union commissioner, Pierre Moscovici, said the timetable for leaving in 2019 was not optional but fixed in treaty law. "She wanted the United Kingdom to have a stronger and harder negotiating position, but has the chaos of a hung parliament".

The main sticking points remain the size of the U.K.'s exit bill, which is estimated between 60 billion to 100 billion euros ($67.2 billion to $111.9 billion) and a deal on citizens rights on both side, including any role for the European Court of Justice, noted analysts at BlackRock.

Predicting "the row of the summer", Davis insisted in May that Britain wanted to "see everything packaged up together, and that's what we're going to do".

"Whilst a hung parliament was not the specific outcome that many expected, asset prices in the United Kingdom and to a certain extent globally, already discounted a period of extended political uncertainty given the complexity of delivering on the outcome of last year's EU referendum", said Paras Anand, CIO European Equities at Fidelity International.

  • Leroy Wright