UK PM Johnson to Face Tory No-Confidence Vote, in the Aftermath of the “Party-Gate”
PM Johnson No-Confidence Vote
The Prime Minister of the United Kingdom and leader of the Conservative party, will face a no-confidence vote today, which is expected between 18:00-20:00 local time, as announced by Sir Graham Brady. [1]
Sir Brady who is the Chairman of the Tory backbench 1922 Committee, said that the threshold of 15% of Tory MPs seeking a no-confidence in PM Johnson had been reached.
For Mr Johnson to lose the vote, half of the Tory MPs +1, will need to vote against him, meaning 180. His predecessor, Ms May, had survived such a vote in December 2018 over Brexit, but had stepped down in mid-2019.
"Party-Gate" Fallout
This action will take place in the aftermath of the Sue Gray final report on the Downing Street parties during the pandemic lockdowns, what has come to be known as the "party-gate".
The prime Minister had allegedly attended gatherings that violated the Covid-19 lockdown measures and he had confirmed back in April that he had received a fixed penalty notice from the London Metropolitan Police relating such an event. [2]
The report from Ms Gray was published in full two weeks ago and had found among other things "failures of leadership and judgment by different parts of No 10 and the Cabinet Office at different times" and that "The senior leadership at the centre, both political and official, must bear responsibility for this culture". [3]
The party-gate saga has lasted for a few months now and PM Johnson has refused to resign despite such calls from the opposition. Now his MPs will decide his political future.
GBP/USD Reaction
The pair starts the week on the offensive amidst broader risk-on sentiment and US Dollar weakness, with the news of the no-confidence not harming it.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
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