Brexit Bulletin: Trust Issues
Brexit Bulletin: Trust Issues
(Bloomberg) --
What’s happening? British and European Union officials started to hash out a future trade deal on Monday amid fears that talks could break down within weeks.
With the U.K. and EU already at loggerheads on several key issues and Boris Johnson’s tactics threatening to undermine trust on both sides, the crunch could come as soon as April, Bloomberg’s Ian Wishart reports here.
Might the U.K. government actually want the talks to collapse? David Gauke, the former justice secretary and prominent remainer, says yes. Writing for the ConservativeHome website, the one-time leader of the so-called Gaukeward squad argues that if Brexit is about taking back control, any compromise to get a deal done leaves the government vulnerable. So better to collapse the talks.
Economically, all this matters more to the U.K. than any U.S. trade accord. As negotiations got underway in Brussels, the U.K. published its objectives for a U.S. deal. The government said the economic upside an accord with Washington could deliver would be as much as £3.4 billion. But that pales in comparison to the cost of walking away from the EU without a deal: £80 billion over 10 years, according to Bloomberg Economics.
If you’re skeptical about the merit of long term economic forecasts — as Britain’s chief Brexit negotiator has said he is — do such figures count for much?
Beyond Brexit
- Coronavirus is dashing Vladimir Putin’s big plan to revive Russia’s economy.
- Spotify revived the music business. Now it wants musicians to return the favor.
- Jack Welch, the champion of corporate efficiency who built General Electric into one of the world’s largest companies and influenced generations of business leaders, has died.
Brexit in Brief
One Brexit, Two Systems | After spending decades aligning with the EU’s rules and processes, U.K. manufacturers are bracing for more costs and upheaval.
Mortgage Swing | U.K. mortgage approvals jumped to the highest since before the Brexit referendum as the housing market swung back into action following Johnson’s breakthrough election win.
Getting Unreal | Tom McTague argues in the Atlantic that Britain and the EU haven’t accepted that the world has changed since Britain left the bloc.
Safety Net | Companies need a £1 billion fund to protect them from a potential cash-flow crisis after Brexit, according to West Midlands Mayor Andy Street.
Handy Advice | Tory lawmaker and Brexiteer Jacob Rees-Mogg has told people that “one verse of the national anthem is exactly the right length of time for which to wash your hands” to avoid coronavirus.
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To contact the editor responsible for this story: Chris Kay at ckay5@bloomberg.net
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