The Bank of England has warned of a failure that will not work. Brexit would trigger a financial crisis in…
The Bank of England has warned of a failure that will not work. Brexit would trigger a financial crisis in Britain, which resulted in the pound falling by 25 percent.
The British Central Bank on Wednesday said in a report that such a scenario could mean a gross domestic product deficit of 8 percent in the first quarter of 2019.
The Bank said that a smoother Brexit for Britain could help alleviate much of the economic impact of the country’s decision in June 2016 to leave the European Union.
The bank’s warning came shortly after the British government said that the country will be poorer after leaving the EU than if it had stayed, no matter what kind of trade it’s going to be with the block.
A government report released earlier on Wednesday estimated that 1
5 years after Brexit, Britain’s GDP will be 0.6 percent lower, even though it is entering into a trade agreement with the EU.
A lack of Brexit, on the other hand, would make GDP 9.3 percent less than it would otherwise I would be in the same period, added the report.
British Finance Minister Philip Hammond said that the agreement on Sunday-based agreement between Britain and the EU was the best way to minimize the cost of leaving the block.
Hammond insisted that the economy was not the only consideration and control of Britain’s borders money and laws also had value.
“There will be a cost to leave the EU because it will be a barrier to our trade. What the Prime Minister’s agreement is doing is to minimize these costs,” he told BBC Radio.  Bad news for Theresa May
The report comes as bad news for Prime Minister Theresa May as she tries to sell her Brexit divorce to a skeptical nation.
May have less than a fortnight to persuade MPs to withdraw the deal in a December 11 vote and avoid breaking Brexit in chaos, four months from Britain’s March 29th departure date.
May run a minority Conservative governments and opposition parties, like many own parliamentarians, oppose the deal.
“This analysis does not show that we will be poorer in the future than we are today,” told parliamentarians. “It shows that we will be better off this deal.”
“Our business is the best deal for jobs and our economy that allows us to honor the referendum,” she said, referring to the vote by 2016 to leave the EU.
On Wednesday, she visited Scotland, who voted strongly to remain in the EU in the 2016 referendum. Scottish first minister Nicola Sturgeon has said that May’s deal is “bad” and her Scottish national party will vote against it.
Jeremy Corbyn, Chief of Britain’s Main Opposition Labor Party told May that she drove “the most shambolic government in living memory” and she should “accept the reality” that Parliament would not resume the deal.
“It’s not hard to be the best deal, if it’s the only deal” he said. “By definition, it is also the worst deal.”
Some Brexiteers believe that Brexit agreement holds Britain too close to Brussels while pro-EU parliamentarians think the conditions are worse than staying in the block and want a second referendum.
An online Survey survey of 1,030 adults to the Daily Mail newspaper showed that 37 percent supported the deal – up 10 percent on November 15th – and 35 percent opposed, 14 percent lower.
Some 41 percent wanted parliamentarians to vote for the deal and 38 percent wanted them to vote it down, according to the survey conducted on Tuesday.