There are many reasons to “Get Brexit Done” by 31st December 2020.
It is important to first understand that Brexit is not done! Britain is still currently abiding by all EU rules and regulations without any representation in Brussels despite still paying over £1billion per month! During this transition period, every new rule and regulation rubber stamped by Brussels becomes law in the UK. Here are 5 reasons why an extension would be ruinous for Britain.
Reason One. Uncertainty.
For over 4 years, British businesses – despite more than 90% of them not exporting to the EU – have been unable to plan for future expansion, simply because they cannot cost, calculate or determine their products or services viability in the prevailing uncertainty. Free of EU regulations, they will be in a position to substantially reduce the burden of red tape and restrictions, resulting in greater competitiveness through efficiency savings and crippling administrative liabilities.
Reason Two. Investor Confidence.
Investment is the cornerstone of commerce. Knowing how much capitalisation a new business or new product will require is a major component for all business owners. To have the confidence to invest, all businesses need enduring certainty and market stability. Yes some thrive on volatility but not when it requires investment in production lines, long term pricing and energy and transport costs. Extending the current transition period would cripple investment and investor confidence.
Reason Three. Independence.
Until the Covid-19 pandemic, the job’s market was at record high employment and record low unemployment levels. The resulting – above inflation – growth in wages was extremely welcome after years of cheap labour forcing family incomes to stagnate or, in many cases reduce. Britain needs to settle down after we come through this prevailing threat to our economy. We can only accomplish that if our government has control of our own economy and not become a bit player in the political posturing of the 27 EU member states all disputing and delaying the strategies proposed between the struggling Mediterranean economies and wealthy Northern ones. Britain’s businesses will need vital help from government to get back on its feet, much of what will be required would also be illegal under EU rules.
Reason 4. Eurozone Inequalities.
The Eurozone economy has endured spasmodic growth since the financial crisis of 2008. Whilst the US, Africa and South East Asia have piled on growth and pared down deficits, EU member states have suffered from unequal prosperity. Germany, France and Nordic states have benefitted from a low value Euro, enabling them to rake-in trillions in export revenue, whilst poorer, low-paid Mediterranean countries see little benefit from a currency that makes their products and services appear overpriced. The one-size-fits-all theory has been a disaster for economies like; Greece, Spain, Italy and Portugal. Post Covid-19, the Eurozone will be on its knees and catastrophic debt will endanger all member states for years to come. There will be serious recessionary effects on jobs and investment, likely resulting in the end of the Euro.
Reason 5. Liability.
Undoubtedly this is by far the most important reason to ditch Britain’s membership of the European Union and, as many commentators have exclaimed, we must end the transition period well before the end of the year. The UKs current liability to the EU is around £470 billion. This is our share of risk to the European Central Bank (ECB) plus other areas of risk we have underwritten. But it’s about to get an awful lot bigger.
The EU has been engaged in recent weeks in efforts to solve the impossible task of Coronavirus financial aid to its most affected member states. Here again we see how big the rift is between the struggling Mediterranean economies and the wealthy northern economies. Spain, Italy and Portugal, along with the Greek government has been demanding the creation of Corona bonds. These bonds would be bought by the affluent Eurozone governments and issued through the ECB. The benificiaries would of course be the poorer member states. Yanis Varoufakis, the former Greek finance minister argues that, in many respects, the prosperous northern members owe it to the less well off Southern neighbours since they have borne the brunt of an unfair currency anomaly for 20 years. He has a point! Yes, one could be callous and suggest that those poorest countries are profligate and spent too much on bureaucratic civil servants, high pensions and inefficient quangos. But that does not counter the fact that; Germany, France and others have grown fat on a currency that has taken growth, jobs and investment from Spain, Greece, Italy and Portugal.
So the alternative to Corona Bonds – as suggested by the parsimonious Northern states – is for them to borrow 1.5 trillion euros at 0% interest, and loan it to their poorer neighbours with around 2% interest attached. So much for EU community spirit I hear you say! Well, the Germans and French did it before with Greece after the 2008 financial crisis. There was so much money owed to avaricious German and French banks by the Greeks that, Chancellor Merkel ordered the EU to borrow a lot of money on behalf of Greece and pay it to her and Nicolas Sarkozy’s rapacious lending institutions. Greece will never recover from her gigantic and ever increasing debt and neither will the Italians who suffered a similar fate a few years later.
Last week, the EU Council decided not to issue Corona Bonds – but instead borrow more cheap money and loan it to their impoverished friends on the basis that, should they default, more money can be borrowed and loaned to them to meet the repayment schedules, which has been happening for the past 10 years. It’s as though all the directors of Wonga had become economic advisors to the EU!!
You may now just be getting the idea! Britain is still in the EU… the transition period requires us to abide by their rules, regulations and debentures, even though we have no representation in Brussels, they can still borrow 1.5 trillion euros in our name and loan it to zombie economies that will inevitably default and we, because our currency (the dependable British pound) will remain intact, but the Euro will not, will be the creditor’s choice when it comes collection time.
In Summary – Those demanding the UK delays Brexit transition for a few years, are the very people – in Brussels – who are borrowing money (partly in our name) and loaning it to bankrupt member states who have no means of repayment. What a colossal dereliction of duty our mainstream media are colluding in to keep this from the taxpaying British public!