Thursday, 1 September 2016

'Brexit means Brexit"

“Brexit means Brexit!” Thus spake Theresa May. Thus, we now know the lady is not for turning against the wishes of the great unwashed, which in itself is a novelty for a Tory PM.

When asked about the complexities of the UK’s exit from the EU a political commentator likened our departure to a multi-dimensional chess game. A game played with the futures of industrial sectors, businesses and individual rights at stake.

Many Brexit voters are still euphoric over their recent victory. Some are claiming vindication of the ‘Leave’ vote arguing that the ‘Remain’ predictions of doom and gloom have not materialised. The housing market is steady, indeed still on the rise in London and some other areas of the country; employment numbers remain steady.

Others remain confident we can exit the EU while then being allowed back into the single market without any strings attached. If they don’t we could start imposing heavy tariffs on EU goods. How would Mercedes feel about paying a 40% tariff to sell their cars in the UK?

There are then the overly optimistic who dismiss the need for European imports. We don’t need foreign cars. No, we’ll build our own car plants and manufacture our own vehicles.

The very idea that there are capitalists in the UK who would invest in the manufacturing sector is quaint. Capitalists in the UK have become risk adverse, look at the way the banks came running to us, the taxpayers, to bail them out in 2008.

It is too early for any real analysis of the Brexit vote to be made. However, as time elapses and if uncertainty prevails, foreign investors, especially in vehicle manufacturing and the financial sector, will become jittery. Our economic future will unfold over the next few months.

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