First of all, I am NOT a supporter of Brexit. I believe that Britain and the European Union (EU) as partners are better than both separated; economically. On a longer term, depending on how well the European Union could leverage on other stronger economies within the EU, perhaps Britain would face more challenges because it would have lost one huge market. (Do read about the comments from Germany and France to understand a bit more.) One good friend says that Britain will do better than to remain tied to the EU ‘baggage.’ Well since we are both here in Malaysia, we would just have to see a few years downtime road. Kopiandproperty.com shall be a witness. 🙂
In a widely reported comment, the Bank of England (BOE) has said that the U.K. financial systems remains broadly resilient but the outlook is threatened by potential risks from Brexit vote and Donald Trump’s victory to become the next U.S. president. BOE Gov. Mark Carney basically said that the threat to the U.K. economy would come from external instead of domestic. With the anticipation of fiscal stimulus, money is now rushing back to the U.S and this meant pressure on emerging markets. Should British banks suffer huge losses due to this, it will affect the U.K. financial stability. He also shared this, “It is important to recognize the U.K. is effectively the investment banker for Europe. It is absolutely in the interests of the EU that there is an orderly transition and there is continual access to those services.”
I think it’s better for the new British Prime Minister to think and act courageously instead of really applying to start the ‘divorce’ process within the next few months. It is definitely in the interest of all the other EU members too. Many have offered economic rhetorics but the real underlying reason for all these chest thumping is also because it showed Britain is a very important member. To be direct, another smaller EU member would have attracted by far lower attention than the current one given to Brexit. Yes, this is the reality that everyone has to put on the table for consideration. All the best yeah, leaders of Britain and the EU. Happy following.
written on 30 Nov 2016
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