Britain headed towards no-deal if parliament votes against May's Brexit deal: French President Macron

Britain is headed towards a no-deal Brexit scenario if its parliament votes against Prime Minister Theresa May's withdrawal agreement for a third time next week, French President Emmanuel Macron said on Thursday.

Macron said he was open to a short, technical extension and that European leaders could not let the turmoil surrounding Brexit drag on.

"We must be clear, to ourselves, our British friends and our people. Firstly, we've been negotiating the withdrawal agreement for two years. It cannot be renegotiated. Secondly, in the event of another no vote in Britain, we will be heading towards a no deal. Everyone knows it," Macron said as he arrived at a summit of European leaders in Brussels. 

NO CLARITY

Britain voted in 2016 to leave the EU by 52 percent to 48 - a decision that has split the country, opening up divisive debates over the future of the economy, Britain's place in the world and the nature of Britishness itself.

A European Commission document seen by Reuters said the delay should either be several weeks shorter, to avoid a clash with European Parliament elections in May, or last at least until the end of the year, which would oblige Britain to take part in the elections - something that May said was not in Britain's interest.

The pound fell on the uncertainty surrounding the potential delay and the fact that a no-deal Brexit remained possible. By 1800 GMT it was down around 0.4 percent against the dollar. 

Nearly three years after the United Kingdom voted to leave the European Union, there is still no clarity over how, when or even whether the world's fifth largest economy should leave the bloc it joined in 1973.

When May set the March 29 exit date two years ago by serving the formal Article 50 divorce papers, she declared there would be "no turning back". But parliament's refusal to ratify the withdrawal deal she agreed with the EU has thrust her government into crisis.

The Labour Party said that, by choosing a short delay, May was forcing lawmakers to decide between accepting a deal they have already rejected or leaving without a deal.

Many pro-Brexit members of May's Conservative Party are opposed to a longer delay because they fear it could mean Brexit might never happen. They argue that Britain can do well outside the European Union - even though an abrupt departure would cause short-term pain. 

"RATIFY OR EXIT"

If May cannot win over enough reluctant lawmakers to pass her deal next week, Britain faces the choice of requesting a longer delay or leaving the EU as planned on March 29 - without a deal to cushion the economic upheaval.

Some EU states, including Germany, had given a largely positive response to May's well-flagged request.

But French Foreign Minister Jean-Yves Le Drian said May would need to make her case before EU leaders in Brussels.

"Our position is to send the British a clear and simple message. As Theresa May has repeatedly said herself, there are only two options to get out of the EU: ratify the Withdrawal Agreement or exit without a deal," Le Drian told the French parliament.

May's initiative marked the latest twist in more than two years of negotiations that have left British politics in chaos and her authority in tatters.

After the defeats in parliament opened up the possibility of Britain leaving the EU without a deal, May told parliament on Wednesday that she remained committed to leaving "in an orderly manner".

Her announcement that she was asking for a three-month delay caused an uproar in the chamber. The opposition Labour Party accused her of "blackmail, bullying and bribery" in her attempts to push her deal through, and one prominent Brexit supporter in her own Conservative Party said seeking a delay was "betraying the British people".