Brexit Shadows - Pt. 2

The trouble with the Brexit process is that it becomes increasingly difficult to know who is in control or where it will end. Speculation is rife as to who will come out the winner, the EU or the UK with both sides throwing up sandcastles of supposedly the most important issues to be decided before they can consider the views of the other side.

It is easier to judge the losers; Theresa May has lost the confidence of her party, Angela Merkel is left to form her weakest coalition and the French have invented a new political party just for the occasion!

And the shadows do exist; UK investment going backwards, UK real wages stalling, UK GDP lowest in the EU for the first quarter on 2017 with inflation rising due to the lower value of the £ Sterling. So where could all these night horrors lead to; UK companies denied the skills of the best European engineers and scientists take longer to turn investments into new products / capacity which increases the quality gap between British goods and the best internationally available. Although cheap, lack of innovation makes British exports unattractive and World exports fail to match the gap caused by the EU tariff regime against British exports. UK Government subsidies for poorly performing exporters prevents investment in UK infrastructure which could have produced the much-needed economic stimulus. Unemployed British workers fail to respond to the swathes of jobs created by our departing EU workers and businesses lacking the workforce reduce output and in some instances fail. Meanwhile British consumers still demand the best of European goods causing the trade deficit to worsen.

And if that's not enough, it's Halloween in a couple of weeks!