BREXIT BEAR­INGS

Da­vide Ugolini of Cur­ren­cies Direct takes a look at the implications of Brexit, nine months after the UK ref­er­en­dum

Living France - - LES PRATIQUES -

With the trig­ger­ing of Ar­ti­cle 50, Brexit is about to get real. Theresa May is en­ter­ing di­vorce pro­ceed­ings with the EU in a po­si­tion of strength that was unimag­in­able in the chaotic af­ter­math of the ref­er­en­dum. There has been no con­sti­tu­tional cri­sis and the econ­omy has been re­silient (we have seen buoy­ant growth and fall­ing un­em­ploy­ment). How­ever, mar­kets are still try­ing to fig­ure out what these po­lit­i­cal events mean for the UK.

As the first quar­ter of 2017 came to an end, the slight de­te­ri­o­ra­tion seen in data (in­fla­tion, ster­ling de­val­u­a­tion) and the prospect of slower growth post-Brexit might have sug­gested that un­cer­tainty was start­ing to have a real im­pact. There are no more talks of a hard or soft Brexit, but busi­nesses are start­ing to ad­just to the prospect of new bar­ri­ers when it comes to trad­ing with the EU.

Con­cerns are mount­ing as Scot­tish First Min­is­ter Ni­cola Stur­geon has now con­firmed she will be call­ing for a new Scot­tish in­de­pen­dence ref­er­en­dum. Also, po­ten­tial hard bor­ders with North­ern Ire­land, the only part of the UK shar­ing a border with the EU, could be eco­nom­i­cally dam­ag­ing and desta­bi­lize the re­gion.

Brexit is cer­tainly the big­gest chal­lenge fac­ing the UK in a long time. Theresa May will have to rise to the chal­lenge and show that she has the po­lit­i­cal clout to strike the deal the UK needs in a post-Brexit world. cur­ren­cies­di­rect.com

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