| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Economic uncertainty and the EU
Recent reporting of market movements and the EU arguments has been highly selective. Some ascribe falls in sterling to Brexit uncertainty. At the same time UK government bonds have been rising, implying investors have more confidence in UK financial assets and therefore implying that Brexit is seen as strengthening the UK public finances. My view is they are exaggerating the impact of Brexit on the pound, but maybe they have not worked out that saving all those large contributions to the EU will strengthen the UK public finances and of course cut the balance of payments deficit.
We should be more worried about EU finances and their economic outlook if the UK leaves the EU. Which countries and taxpayers will have to replace the £10 billion the UK pays in to the benefit of the other countries? How will a new UK fishing policy affect the Spanish fishing industry? If the UK imports more cheaper food from the rest of the world who will pay the higher prices for CAP food inside the EU? Is any of the EU’s large trade surplus at risk when the UK leaves, as some commentators like to claim the UK’s trade might be? My view is trade is not at risk, but those who think it is at risk need to understand which side has more to lose.
It is true that the U.K’ S departure from the EU will allow the rest of the EU to move more rapidly to political union and to impose more common policies and more regulations without the UK trying to slow it all down. We have learned that pending rules to ban fast kettles and toasters have been delayed until after the UK vote, as it would not look smart to outvote us on those issues just before the referendum. The 5 Presidents Report has been on ice this year, but could be brought out more rapidly if the UK goes.
I see myself as a good European. I like my continent and many of its people. As a good European I do not want my country to hold up plans for more European integration, nor do I want my country to be dragged into that Union.
The UK is an outward looking global country, trading with the five continents, and friends with many countries worldwide. To restore and foster our democracy we need to leave. There will be no additional economic risks for us outside the EU. On the contrary the risks that come from being too close to the Euro, having to pay into an ever rising EU budget and being pillion on their wild ride to political union mean we must leave to cut our risks.
Source: http://johnredwoodsdiary.com/2016/02/28/economic-uncertainty-and-the-eu/
