Theresa May’s Brexit plan, as widely expected, failed in Parliament on Tuesday. The negotiated EU Withdrawal Agreement was rejected by a majority of 230 votes, with 432 voting against and 202 for. The defeat could now trigger a devastating market reaction.
According to Francesco Moscone, professor of Business Economics at Brunel University London the result could have a significant disruption to worldwide economic growth.
Prof Moscone told Express.co.uk: “A disorderly Brexit has the potential of leading the UK into a recession, which could have significant disruption to finance and economic growth.
“However, such disruption will not only impact the UK, but also its European counterparts that are currently facing a slowdown in economic growth.
“We can already see this in Germany and Italy.”
And the professor is now worried a no-deal Brexit is on the agenda.
He added: “With a no deal we do not know how resilient the UK economy will be.
“In fact, the uncertainty has led to a lack of preparation necessary for businesses.
“This will have serious consequences for the investors as well as consumer confidence.”
Theresa May will now have three days to come up with an alternative way to move forward in the Brexit negotiations.
She is currently at risk of a no-confidence vote from Labour, and Parliament could also seize the process of forming a Brexit plan.
This could result in profound economic consequences with GDP shrinking by up to 8 percent, according to the Confederation of British Industry.
A no-deal Brexit in which Britain exits the EU without an agreement will hurt the economy and leave trade with Europe in chaos.
Approximately nine million policyholder in Europe hold a contract with a UK insurer and could be affected.
The Association of British Insurers, especially points to British expats across continental Europe, and any companies with corporate liability policies with British insurers.
The International Monetary Fund has also warned Europe’s economy is facing threats to growth.
The fund said: “External downside risks facing the entire region stem from a mix of financial vulnerabilities, possible inward-looking policies globally, and a range of noneconomic factors.”