According to report, yet to be confirmed by other sources, the EU will offer the UK to stay in the EU for another two years after the expiry of Article 50 in March 2019. From then, the UK will continue its regular activity in the EU and this will last for two years, until 2021. 

This includes the single market, the customs union, and open borders. The difference is that the UK will not have voting rights as it does now as a full member. This is similar to the Norwegian model or even an upgraded version: everything but the voting rights.

Markets are right to rejoice: less uncertainty and a longer period of participation in the single market, what markets really want.

There may be another reason to be cheerful and also hopeful. This could be a model for more than two years. If everything works smoothly, it could be extended for another year, or two, or three or forever. Public opinion in the UK would need to accept this model: formally being out but without any real changes.

However, such a “very soft Brexit” in perpetuity, would also revive UKIP. The anti-EU extreme-right party was crushed in the recent elections in June as they lost their raison d’être – their reason for existence.

These are still early days, but such a move could be very good for the UK economy and the pound.

What do you think?