While the appointment of a new prime minister will reduce political uncertainty in the United Kingdom, the new government will face a worsening cost of living crisis and a looming trade war with the European Union that will continue to create economic risks. On July 7, U.K. Prime Minister Boris Johnson announced his resignation as Conservative Party leader and eventual plan to stand down as prime minister following the resignation of several members of his government in recent days. For months, multiple scandals and accusations of mismanagement had weakened Johnson, who narrowly survived a no-confidence motion from his own party in late June. Johnson will stay in a transitional government with limited powers while his Conservative Party elects a new leader, who will then become prime minister. Johnson said that the timetable for the Conservative leadership contest will be announced next week, and that his plan is to stay in power...
