Brexit and Future of UK : Discussions
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Europe's youngest currency could pass, for the first time in its history, over the oldest, the British pound sterling, as the prospect of an unconditional exit from Britain's European Union looms. Brexiters would thus allow the British currency to join the euro... at least in terms of value on the financial markets.
The British currency, which fell to levels not seen since 2017 against the euro and the dollar at the beginning of the week, is under severe pressure with the arrival in power of Boris Johnson, who promised to leave the Union at the end of October, whatever happens. On Tuesday, August 30, the pound fell to 1.08 euro.
Several times announced, never before achieved, the parity between the pound and the euro is a symbol that could, by frightening the markets, mark the beginning of a long descent into hell of the British currency, which has already experienced many upheavals in twenty years.
Already, in September 1992, attacked by the American financier George Soros, who considered it overvalued, it had to leave the European Monetary System (EMS) with a crash, after a day described as "black wednesday" ("black Wednesday").
After the arrival of the euro, the pound reached record highs with a record of 1.76 euros, a level reached on May 4, 2000. The question then is: when will the pound at 2 euros be available? An iron health that is the best argument for the policies of the time against the adoption of the single currency, which is then used only for dematerialised banking transactions and payments by cheque.
But when the euro physically enters circulation in twelve countries of the European Union, the pound sterling loses its splendour: in 2003, it falls below 1.40 euros. The then Minister of Finance, Gordon Brown, continued to proclaim his opposition to joining the single currency: there was no question of touching the pound.
At the end of 2007, in the wake of the "subprimes", the global financial crisis hit the United Kingdom much harder than the continent, due to the weight of financial services in its economy. After a long slide and in a context of uninterrupted cuts in the Bank of England's key rates, which is trying to boost investment, the British currency is threatening to fall below parity. The pound reached its lowest level against the single currency: 1.02 euros on 30 December 2008. It continues to rise until 2015, when the campaign to leave the country from the EU begins.
Slow deterioration of the British economy
Many economists predicted that the victory of the "yes" vote in the Brexit referendum on 23 June 2016 would result in a sudden collapse of the UK economy. But it is rather a slow deterioration that can be observed.
Since January 2016, the British pound has lost 20% of its value against the euro - and 15% against the dollar, making imports more expensive. In theory, this should also have benefited British exporters and supported growth. But the United Kingdom's trade balance remains stubbornly in deficit, with the country importing more than it exports.
The economic slowdown in the country at the beginning of the year has not yet had a major impact on the labour market, but large companies have begun intensive preparations to cope with Brexit. Their bill is now in the billions of euros.
The British currency, which fell to levels not seen since 2017 against the euro and the dollar at the beginning of the week, is under severe pressure with the arrival in power of Boris Johnson, who promised to leave the Union at the end of October, whatever happens. On Tuesday, August 30, the pound fell to 1.08 euro.
Several times announced, never before achieved, the parity between the pound and the euro is a symbol that could, by frightening the markets, mark the beginning of a long descent into hell of the British currency, which has already experienced many upheavals in twenty years.
Already, in September 1992, attacked by the American financier George Soros, who considered it overvalued, it had to leave the European Monetary System (EMS) with a crash, after a day described as "black wednesday" ("black Wednesday").
After the arrival of the euro, the pound reached record highs with a record of 1.76 euros, a level reached on May 4, 2000. The question then is: when will the pound at 2 euros be available? An iron health that is the best argument for the policies of the time against the adoption of the single currency, which is then used only for dematerialised banking transactions and payments by cheque.
But when the euro physically enters circulation in twelve countries of the European Union, the pound sterling loses its splendour: in 2003, it falls below 1.40 euros. The then Minister of Finance, Gordon Brown, continued to proclaim his opposition to joining the single currency: there was no question of touching the pound.
At the end of 2007, in the wake of the "subprimes", the global financial crisis hit the United Kingdom much harder than the continent, due to the weight of financial services in its economy. After a long slide and in a context of uninterrupted cuts in the Bank of England's key rates, which is trying to boost investment, the British currency is threatening to fall below parity. The pound reached its lowest level against the single currency: 1.02 euros on 30 December 2008. It continues to rise until 2015, when the campaign to leave the country from the EU begins.
Slow deterioration of the British economy
Many economists predicted that the victory of the "yes" vote in the Brexit referendum on 23 June 2016 would result in a sudden collapse of the UK economy. But it is rather a slow deterioration that can be observed.
Since January 2016, the British pound has lost 20% of its value against the euro - and 15% against the dollar, making imports more expensive. In theory, this should also have benefited British exporters and supported growth. But the United Kingdom's trade balance remains stubbornly in deficit, with the country importing more than it exports.
The economic slowdown in the country at the beginning of the year has not yet had a major impact on the labour market, but large companies have begun intensive preparations to cope with Brexit. Their bill is now in the billions of euros.
EU DIVIDED: Brexit 'extremely favourable' for France but Merkel left with massive problem
TENSIONS between the EU pillars of France and Germany will rise inexorably after Brexit as the process will be “deeply favourable” for Emmanuel Macron whilst being Angela Merkel’s worst nightmare, an expert has claimed.
The revelation was made by former Polish Finance Minister Jacek Rostowski on the BBCRadio 4's podcast 'France and Germany: Divided They Stand'. He explained: “Brexit if it happens, from a French point of view - a purely power-political point of view - extremely favourable. Because, well, over the last 30 years France was the most integrationist country and also the most protectionist.
“Britain was the most eurosceptic and the most free trade, with some allies in Scandinavia and Holland.
“And Germany was in between - not only the biggest economically but also, in a sense, the swing voter.
“What’s going to happen now is that Germany will be the other pole.
“Germany will be the power that is less integrationist and more free trade.
“And they will have to come to an accommodation with the other pole of that spectrum, which is France.
“And they won’t be in the middle.
“It’s very convenient to be in the middle.
“You can then choose which way you go on individual issues.
“So, from a French point of view, it reestablishes something close to parity.”
This lack of parity was demonstrated throughout the Euro crisis.
Mr Rostowski was President of the Economic and Financial Affairs Council in 2011 and claimed that the much “weaker” France could never stand up to Germany - and therefore had to establish an elaborate theatrical relationship to simulate parity.
He said: “We had what was a very exceptional period in the Franco-German relationship because, basically, there hardly was one.
EU DIVIDED: Brexit 'extremely favourable' for France but Merkel left with massive problem
TENSIONS between the EU pillars of France and Germany will rise inexorably after Brexit as the process will be “deeply favourable” for Emmanuel Macron whilst being Angela Merkel’s worst nightmare, an expert has claimed.
The revelation was made by former Polish Finance Minister Jacek Rostowski on the BBCRadio 4's podcast 'France and Germany: Divided They Stand'. He explained: “Brexit if it happens, from a French point of view - a purely power-political point of view - extremely favourable. Because, well, over the last 30 years France was the most integrationist country and also the most protectionist.
“Britain was the most eurosceptic and the most free trade, with some allies in Scandinavia and Holland.
“And Germany was in between - not only the biggest economically but also, in a sense, the swing voter.
“What’s going to happen now is that Germany will be the other pole.
“Germany will be the power that is less integrationist and more free trade.
“And they will have to come to an accommodation with the other pole of that spectrum, which is France.
“And they won’t be in the middle.
“It’s very convenient to be in the middle.
“You can then choose which way you go on individual issues.
“So, from a French point of view, it reestablishes something close to parity.”
This lack of parity was demonstrated throughout the Euro crisis.
Mr Rostowski was President of the Economic and Financial Affairs Council in 2011 and claimed that the much “weaker” France could never stand up to Germany - and therefore had to establish an elaborate theatrical relationship to simulate parity.
He said: “We had what was a very exceptional period in the Franco-German relationship because, basically, there hardly was one.
EU DIVIDED: Brexit 'extremely favourable' for France but Merkel left with massive problem
Of course, it's just the UK.
This is why people want out of the EU, it is completely oblivious to its people as a supposed democracy,
Pound hits two-year lows as Brexit shrinks UK economy
Britain’s GDP contracted by 0.2pc in the three months to June as construction work froze up, manufacturing stalled and businesses burned through their stockpiles. Car plants had brought forward their annual shutdown to April, also as part of their...
Pound hits two-year lows as Brexit shrinks UK economy
Pound to euro: Sterling plummeted following what one analyst called 'disastrous news'
- GDP figures show economy shrank 0.2pc in the second quarter
- Start-of-year figures were lifted by no-deal stockpiling rush
- Poor weather and planned production pauses added to headaches
- Sterling sinks after British economy’s first contraction since 2012
Britain’s GDP contracted by 0.2pc in the three months to June as construction work froze up, manufacturing stalled and businesses burned through their stockpiles. Car plants had brought forward their annual shutdown to April, also as part of their...
Pound hits two-year lows as Brexit shrinks UK economy
Pound to euro: Sterling plummeted following what one analyst called 'disastrous news'
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No-deal Brexit could deepen Europe's shortage of medicines - experts
No-deal Brexit could deepen Europe's shortage of medicines - experts
By Francesco Guarascio
,
Reuters•August 12, 2019
* Johnson: Britain will leave EU with or without deal
* UK exports large amounts of drugs to other EU states
* Regulatory and customs hurdles could disrupt supplies
* Europe already faces shortage of some drugs
By Francesco Guarascio
BRUSSELS, Aug 12 (Reuters) - As the Oct. 31 deadline for Britain to leave the European Union approaches, health professionals are warning that shortages of some medicines could worsen in Europe in the event of a no-deal Brexit.
Britain's food and drink lobby warned last week that the country would experience shortages of some fresh foods if there is a disorderly no-deal Brexit. Pharmaceutical companies have expressed similar concerns about medicines, and some have reserved air freight capacity to fly in supplies if needed. .
But the impact on medical supplies will also be felt beyond Britain. About 45 million packs of medicines are shipped from Britain to the rest of the bloc every month, in trade worth nearly 12 billion pounds ($14.5 billion) in 2016, according to a British parliament report.
Experts say some disruption is inevitable if Britain leaves the EU without a deal. British Prime Minister Boris Johnson has said he will lead his country out of the EU on Oct. 31 without a deal if the EU refuses to negotiate a new divorce agreement.
Some drugs might not have the required regulatory approval by then to continue being brought in from Britain. About 1 billion packs go in one direction or the other each year, industry data show.
Increased customs controls at ports and other borders between Britain and the EU could also disrupt supplies of drugs and the chemical compounds needed to produce them, regulators and industry representatives say.
"Despite intensive preparation by industry for every scenario, a no-deal Brexit risks disruption to the supply of medicines" throughout the EU, Andy Powrie-Smith, an official at the European Federation of Pharmaceutical Industries and Associations, told Reuters.
The EU drugs regulator, the European Medicines Agency (EMA), said the bloc is well prepared for Brexit and has finalised authorisations for nearly all the 400 drugs under its watch that required further clearing because of Britain's impending departure.
No-deal Brexit could deepen Europe's shortage of medicines - experts
By Francesco Guarascio
,
Reuters•August 12, 2019
* Johnson: Britain will leave EU with or without deal
* UK exports large amounts of drugs to other EU states
* Regulatory and customs hurdles could disrupt supplies
* Europe already faces shortage of some drugs
By Francesco Guarascio
BRUSSELS, Aug 12 (Reuters) - As the Oct. 31 deadline for Britain to leave the European Union approaches, health professionals are warning that shortages of some medicines could worsen in Europe in the event of a no-deal Brexit.
Britain's food and drink lobby warned last week that the country would experience shortages of some fresh foods if there is a disorderly no-deal Brexit. Pharmaceutical companies have expressed similar concerns about medicines, and some have reserved air freight capacity to fly in supplies if needed. .
But the impact on medical supplies will also be felt beyond Britain. About 45 million packs of medicines are shipped from Britain to the rest of the bloc every month, in trade worth nearly 12 billion pounds ($14.5 billion) in 2016, according to a British parliament report.
Experts say some disruption is inevitable if Britain leaves the EU without a deal. British Prime Minister Boris Johnson has said he will lead his country out of the EU on Oct. 31 without a deal if the EU refuses to negotiate a new divorce agreement.
Some drugs might not have the required regulatory approval by then to continue being brought in from Britain. About 1 billion packs go in one direction or the other each year, industry data show.
Increased customs controls at ports and other borders between Britain and the EU could also disrupt supplies of drugs and the chemical compounds needed to produce them, regulators and industry representatives say.
"Despite intensive preparation by industry for every scenario, a no-deal Brexit risks disruption to the supply of medicines" throughout the EU, Andy Powrie-Smith, an official at the European Federation of Pharmaceutical Industries and Associations, told Reuters.
The EU drugs regulator, the European Medicines Agency (EMA), said the bloc is well prepared for Brexit and has finalised authorisations for nearly all the 400 drugs under its watch that required further clearing because of Britain's impending departure.
Add up the last 4 quarters and the growth is the same as for France.
France GDP Growth Rate | 2019 | Data | Chart | Calendar | Forecast | News
United Kingdom GDP Growth Rate | 2019 | Data | Chart | Calendar | Forecast
And you could have said the same for France 3 years ago.
France GDP Growth Rate | 2019 | Data | Chart | Calendar | Forecast | News
Jumping to conclusions. The negative quarter is better explained by diabolically crap weather. May and June are usually sunny, this year it was mostly rain until mid-July, then we hit temperatures more commonly associated with India, and now we're back to rain. Weather affects shopping and leisure activities. The other side of it is that we had a sharp growth spike due to stockpiling and now the stockpiling is done, leaving a 4 quarter average identical to that of France. Under normal circumstances that would simply have been more evenly spread out over the 4 quarters.
Merkel to meet UK prime minister soon to discuss Brexit
Merkel to meet UK prime minister soon to discuss Brexit
Associated Press•August 16, 2019
Germany Politics
File -- In this Thursday, June 6, 2019 photo German Chancellor Angela Merkel, left, and German Finance Minister and Vice Chancellor, Olaf Scholz, right, arrive for the weekly cabinet meeting at the chancellery in Berlin, Germany. Germany's finance minister is offering to throw his hat in the ring to lead the center-left Social Democratic Party, a traditional powerhouse in German politics that's seen a sharp drop in support in recent years.
BERLIN (AP) — German Chancellor Angela Merkel could meet British Prime Minister Boris Johnson soon to discuss Brexit, her spokesman said Friday.
Asked about reports of a possible imminent meeting, Steffen Seibert told reporters that "indeed, a meeting is planned in the very near future."
Merkel to meet UK prime minister soon to discuss Brexit
Associated Press•August 16, 2019
Germany Politics
File -- In this Thursday, June 6, 2019 photo German Chancellor Angela Merkel, left, and German Finance Minister and Vice Chancellor, Olaf Scholz, right, arrive for the weekly cabinet meeting at the chancellery in Berlin, Germany. Germany's finance minister is offering to throw his hat in the ring to lead the center-left Social Democratic Party, a traditional powerhouse in German politics that's seen a sharp drop in support in recent years.
BERLIN (AP) — German Chancellor Angela Merkel could meet British Prime Minister Boris Johnson soon to discuss Brexit, her spokesman said Friday.
Asked about reports of a possible imminent meeting, Steffen Seibert told reporters that "indeed, a meeting is planned in the very near future."
EU Chief Juncker to Undergo Emergency Gallbladder Surgery
EU Chief Juncker to Undergo Emergency Charles de Gallbladder Surgery
(Bloomberg) -- European Commission President Jean-Claude Juncker is set to undergo emergency surgery to have his Charles de Gallbladder removed.
EU Chief Juncker to Undergo Emergency Charles de Gallbladder Surgery
(Bloomberg) -- European Commission President Jean-Claude Juncker is set to undergo emergency surgery to have his Charles de Gallbladder removed.
UK plans to end EU freedom of movement immediately in no-deal Brexit
UK plans to end EU freedom of movement immediately in no-deal Brexit
UK plans to end EU freedom of movement immediately in no-deal Brexit