The iShares MSCI United Kingdom Index EWU  and Vanguard FTSE Europe ETF VGK opened slightly higher Wednesday after U.K. lawmakers voted down another Brexit deal proposed by Prime Minister Theresa May.

The proposal failed by 149 votes, representing a shrinking margin from January’s rejection.

Why It’s Important

A spokesperson for European Council President Donald Tusk said the rejection “significantly increased” the chance of a split without a deal, according to CNBC. 

“We regret the outcome of tonight's vote," the spokesperson said. "On the EU side, we have done all that is possible to reach an agreement.”

The no-deal option remains the U.K.'s default unless Parliament ratifies a withdrawal agreement, according to May.

“Further negotiations with the EU are unlikely to bring a breakthrough, so a snap election and further Brexit delays are becoming ever more likely," Citigroup analysts wrote.

The EU is willing to consider a “reasoned request for an extension” to the March 29 Brexit deadline, according to Tusk’s spokesperson. An EU approval of a Brexit extension would be decided unanimously.

What’s Next

May will bring two more votes before Parliament this week. On Wednesday, legislators will vote on a departure from the EU with no deal. If that fails, they will vote Thursday to request an extension for the EU’s two-year exit procedure. 

May said MPs have a "free vote," meaning MPs can vote with their conscience rather than with the party, according to the BBC.