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UK employers and markets welcomed the somewhat more flexible approach of Theresa May's government on Brexit on Monday, while remaining cautious about the lack of detail on the crucial issue of financial services.
After a meeting At 12 noon on Friday, Conservative Prime Minister Theresa May secured her government's agreement on the broad outlines of her planned Brexit goals in late March.
These proposals, to be detailed in a " ] white paper "released on Thursday, plans to establish a free trade zone for goods between the UK and the EU as well as a new customs model with the 27, in order to maintain a trade" without friction "with the mainland.
Answer" cautious "markets
Carolyn Fairbairn, executive director of the employers' confederation CBI, saw in these proposals" a not in the right direction "Monday morning on the BBC. However, it ruled that Davis's resignation was a " blow " to Ms. May, explaining that this departure broke the image of a government finally united after months of dissension.
The departure of this heavyweight from the government did not seem to frighten the British market. The pound sterling rose Monday morning against the euro, 88.25 pence for one euro, against 88.43 pence Friday night.
This answer " cautious " markets " reflects probably the interpretations of what this resignation means exactly "said Derek Halpenny, badyst for MUFG. According to him, it will be a question of observing whether the departure of David Davis will create further eddies within the majority or if it will only remain an isolated event.
Ms. May quickly named the Davis's successor, Dominic Raab, whose Eurosceptic orientations could allow the Prime Minister to maintain a balance within her government between supporters of an uncompromising Brexit and those who favor a more conciliatory approach towards Brussels
Threatened Investments
Building on the government's personalities in favor of their arguments, such as Finance Minister Philip Hammond, the business community has seen with some relief the position of the executive move gradually in recent months towards a more favorable approach to free trade.
Several large companies had stepped up before the important meeting on Friday to put pressure on Ms. May. Airbus, BMW, Jaguar Land Rover or Siemens had warned that they could reduce their investments in the country if the Brexit was to lead to the restoration of customs controls with the EU.
Sunday, a hundred entrepreneurs have still written an open letter to ask the government to go further than Friday and stay purely and simply in the customs union. Among the signatories were leaders of Pret and Domino's, Zoopla (real estate) or Net-a-porter (clothing).
"The competitiveness of the City is based on the final agreement" [19659005] The government's new proposals contain little new information about the future of the major service sector, which has worried Catherine McGuinness, a senior official with the City of London Corporation. She stated that the " competitiveness of the city and the country is based on the final agreement between the government and the EU.An agreement that excludes services would have a negative impact on the financial sector ". [19659002] The European Commission has so far been very reluctant to integrate the services issue into a free trade agreement between Brussels and London, when the United Kingdom leaves the market unique European.
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