Thursday, February 22, 2018

Opportunity from Brexit turmoil

There has been much hand wringing over the Brexit process. Deutsche Welle reported that Angela Merkel stated that Brexit would leave a very challenging €12 billion hole in the 2021-27 EU budget. Across the English Channel, Politico reported that Brexit Secretary David Davis assured businesses that "the UK will not become a ‘Mad Max-style world borrowed from dystopian fiction’ after it leaves the EU".
The U.K. will not undercut EU businesses on workers’ rights and environmental protections, David Davis will pledge on Tuesday.

Speaking to an audience of business leaders in Vienna, the U.K. Brexit secretary will insist that Brexit will not “lead to an Anglo-Saxon race to the bottom,” committing the country to “meeting high standards after we leave the EU.” But he will call for a post-Brexit trade deal in which British regulations are recognized by Brussels as comparable to its own.

Now we find out that the UK has proposed to stretch out the end of the Brexit transit period from December 2020 to *ahem* as long as it takes (see proposal here).

In other words, we have the usual European chaos and the latest act of European Theatre. But in chaos, there may be investment opportunity.

The full post can be found at our new post here.

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