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If they can't come up with a decent solution they should take it back to the people. Choice of hard brexit, May's deal or cancel the whole thing. The politicians have made it very clear they think May's deal is crap and a hard brexit is terrible.
Personally if that happened and hard brexit or May's deal won it wouldn't be my choice and I'd be unhappy with the result, but at least there would be clarity around what 'the will of the people' is so I'd have to accept it.
They can't - May has secured a shorter extension from the EU than she wanted. She wanted June, they gave her May. We can't force the EU to give us longer, but naturally if there was a vote to remain they'd accept that straight away.
I agree with Andy's analysis, May's even lost her chief whip's confidence and he's being openly critical. That's about as bad as it gets for any PM (or should be).
I think the MV3 will have to happen first, but a no confidence vote next week is a real possibility. May got 63% on December 12th - a lot has changed since then and it's hard to see how she could survive one. Then the Commons could take control and come up with something sensible by April 12th.