Sterling rises after a top EU court advisor says the UK can cancel Brexit

The legal advisor for the European Union's top court said Tuesday that the U.K. can cancel Brexit without asking for permission from other EU member states.

A group of Scottish lawmakers have sought a legal ruling on if and how the U.K.'s request under Article 50 to leave the European Union could be unilaterally revoked before the Brexit deadline of March 29, 2019.

Article 50 allows a country to trigger the process that takes them out of Europe's political and economic union. U.K. Prime Minister Theresa May invoked the exit clause in March 2017.

The final ruling on whether Article 50 could be canceled without input from the EU's other 27 countries will be granted by the Court of Justice of the European Union (CJEU).

What happens now?
The European court has already held the hearing, taking evidence from the group of lawmakers who said they wanted clarity to help decisions made by the U.K. Parliament. The British government has opposed the case, arguing it is a politically-motivated bid to frustrate Brexit.

The court also heard from lawyers representing the European Commission and Council of the European Union — which is the executive arm of the EU and the institution that represents member states' governments. They argued that revoking Article 50 should involve unanimous agreement from the other 27 nations.

The EU is worried that allowing a country to trigger Article 50 and then reverse the decision with no additional input could become a tool for those unsatisfied with the policies of Brussels. For the U.K. government and pro-Brexit politicians, there are likely concerns it could pave the way for a second referendum, giving the public an option of remaining in the EU.

Will it make any difference?
Not according to the U.K. government. May's team have stuck fast to the message that her deal is the only reasonable outcome of Brexit and that Britain will definitely leave the European Union on March 29 next year

In a statement the Department for Exiting the EU further played down the case's importance: "The government has made submissions to the CJEU. In any event, the government will not be revoking Article 50."

Source: CNBC

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