Merkel says European Union ready to start Brexit negotiations

Standing outside 10 Downing St. today, Britain's Prime Minister Theresa May tried to put a courageous face on the disastrous results of Thursday's vote.

"EU did not want #Brexit, but has been prepared to negotiate it since previous year", tweeted Siegfried Muresan, spokesperson for the European Parliament's largest grouping, the center-right European People's Party (EPP).

We see this as a mild short-term negative for United Kingdom domestic assets due to the uncertainty and prospect of a weak government vulnerable to losing votes in parliament. EU Commissioner Guenther Oettinger said that "with a weak negotiating partner, there's the danger that the negotiations will go badly for both sides".

"We want to negotiate quickly, we want to stick to the time plan, and so at this point I don't think there is anything to suggest these negotiations can not start as was agreed".

Within the two years of talks, Britain wants to not only agree on the terms of its exit but also negotiate a new relationship on things like trade and security. Oliver Robbins, May's EU adviser, told his European counterparts: "The prime minister has directed that the procedures for preparing the negotiations for the formal withdrawal from the European Union should start as soon as possible".

He urged the Government to "reconsider whether it's really good for Great Britain to withdraw from the European Union in this way".

Few Europeans voiced much sympathy for May.

Brussels' chief negotiator Michel Barnier said Brexit talks could wait until the new government was ready.

About 44 percent of British goods and services flow to the European Union tariff-free, but that link comes at the price of allowing free movement of European Union workers into the country and letting the continent's courts have a say in British laws. May was wooden on the stump, flubbed interviews and ducked debates; she appeared to be anything but the "strong and stable" leader of her campaign slogan. Liberal Democrats means more voices challenging May's "hard Brexit" vision, in which she wants to leave the single market.

Concerns grew that Brexit negotiations could be put on hold after Britain's Conservative Party failed to secure a majority in Parliament and a clear mandate in the snap election Thursday.

BUT.EU leaders think she is bluffing because no deal would spell economic and legal chaos.

Most now appear to prefer that the bloc's second-biggest economy leave smoothly and quickly. The currency has been highly volatile in the last year, from $1.50 a year ago before the Brexit vote to below $1.18 briefly in October. The risk of having no deal worries some in Britain, particularly businesses.

A hung Parliament also runs the risk of another election midway through the talks, distracting whoever is prime minister and creating more uncertainty.

The schedule and indeed the entire negotiating process now looks questionable.

"If this is a minority Conservative government, then it might be a government that doesn't last very long, and we might head for another election", said Tim Bale, professor of politics at Queen Mary University of London.

"Still, "'hard-but-smooth' Brexit would remain our base case", Citi said. "Maybe Britain will have to show greater flexibility in the negotiations". "A weak partner weakens the whole negotiations", he added.