Morgan Stanley issued a research note stating that the year 2018 may witness another snap election as Tories are likely to turn against the Prime Minister. The bank also said that Britain will have to make a choice between staying alone with a closer connection with Europe or being a full time member of the customs union and single market.
A backlash was sparked between Tory MP’s and Theresa May when she expressed her wish to stand for the next General Elections, which are going to take place in the year 2022. Until now, most of the conservative members wish to see Theresa May as Prime Minister even after her term gets over in March, 2019.
But the US Bank, Morgan Stanley is predicting that such a scenario will be difficult because Brexit splits are often opening up within the Cabinet.
An analyst from the firm said that the government is going to survive this year as they are making enough concessions for talks to progress. But he thinks that the government is going to fall next year as it will have to make a choice between either being a member of the market and union and abide by the laws of Europe, or have its own court and law and stay away from the custom union and single market.
The analyst feels that this decision is going to tear up the government because of difference in opinions and will result in a vote of no confidence in the Parliament. Thus, there are high chances of an early election taking place.
The bank also added that the growth of the country would get inhibited as political chaos is going to weaken the economy. If Theresa May is forced out from her position, there are high chances that she gets replaced by Jeremy Corbyn.