Hung Parliament May Be 'Disaster' for U.K., Businesses Warn

Business optimism in the U.K. economy plunged after Theresa May’s Conservative Party lost its majority in Parliament, less than two weeks before talks start on exiting the European Union.

May called the snap election for talks with the EU.

A survey of business leaders conducted over the weekend showed 57 percent are pessimistic about the prospects of Britain’s economy over the next year, according to the Institute of Directors.

That’s higher than when Britain voted in June last year to leave the EU and 43 percent of the executives were pessimistic, the business group said. “It is hard to overstate what a dramatic impact the current political uncertainty is having on business leaders, and the consequences could (if not addressed immediately) be disastrous for the U.K. economy,” said Stephen Martin, director general of the IoD in an emailed statement.

Read more, May called the snap election with a view to expand her previously slim majority and strengthen her hand for talks with the EU.