Call for interim phase to smooth way for Brexit
A TRANSITION phase was necessary to limit the negative impact of the UK’s move to leave the EU, Momentum Investments said in a note yesterday.
In December, ministers in the British Parliament were asked to vote on whether or not they supported Brexit. An overwhelming majority of 461 ministers endorsed it, while 89 ministers voted against it.
“Prime Minister Theresa May has set March 31 as the deadline for invoking Article 50, implying that Britain’s exit from the EU will be made official no later than April 2019.
“Agreeing on new trading relationships, establishing tariff agreements and negotiating barriers to entry will likely require more time. A transitional phase could limit the negative impact on growth.
“Though further stimulus, higher exports and increased tourism are likely to rule out a recession in 2017, we do anticipate some fallout from the Brexit vote as firms’ concerns over disrupted relations with the EU delay investment and uncertainty dampens consumer confidence,” Momentum said. – Siseko Njobeni