LONDON - Britons are facing another big electoral choice. For the third time in less than four years, voters heading to the polls are confronted with an existential decision. In 2016 they opted narrowly to leave the European Union, tipping the country into a political crisis from which it has yet to emerge. Less than a year later they deepened the turmoil by stripping Prime Minister Theresa May of her majority.
The prime minister’s party is betting that formally leaving the EU will take the heat out of Brexit. Supporters will lose interest, while those who campaigned to reverse the referendum will concede defeat. Bureaucrats can then debate the finer points of trade policy in relative peace. The historically free-market Conservatives are also set to become more interventionist. Johnson has promised that the state will prop up ailing companies, and favour local suppliers.
The Conservatives would slightly increase taxes, while Labour would demand more of high earners. Still, government borrowing will rise, whoever wins.Currency traders like the idea of a Conservative majority. The pound has risen by more than 2% against both the U.S. dollar and the euro since parliament voted for an early election in October. Sterling tends to fall when polls suggest Johnson’s lead is narrowing, as they did on Tuesday.
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