[ad_1]
The Bank of England has warned that a non-Brexit would trigger a financial crisis in the UK, causing the pound to fall by 25%.
The British central bank announced Wednesday in a report that such a scenario could mean a deficit of 8% of gross domestic product (GDP) in the first quarter of 2019.
The bank said that a more fluid Brexit for Britain could help alleviate much of the economic impact of the country's decision to leave the European Union in June 2016.
The bank warning came shortly after the British government announced that the country would be poorer after leaving the EU than it had stayed there, regardless of the type of bank. 39, commercial agreement with the bloc.
A government report released on Wednesday had estimated that 15 years after Brexit, the UK's GDP would be 0.6% lower, even if it concluded a trade deal with the EU.
On the other hand, a Brexit without agreement would reduce GDP by 9.3% compared to the same period, the report added.
British Finance Minister Philip Hammond said the start-up agreement concluded between Britain and the EU on Sunday was the best way to minimize the costs of leaving the bloc.
Hammond insisted that the economy was not the only consideration and that British border control, money and laws also had value.
"Leaving the EU will have a cost, because there will be obstacles to our trade.The Prime Minister's contract absolutely minimizes these costs," he told BBC radio.
Bad news for Theresa May
The report is bad news for Premier Theresa May, who is trying to sell her Brexit divorce deal to a skeptical country.
May has less than a fortnight to convince MPs to support the deal at a vote on Dec. 11 and to avoid plunging Brexit into chaos, four months from the date of departure. United Kingdom on March 29.
May runs a minority Conservative government and the opposition parties, as well as many of his own MPs, are against the agreement.
"This badysis does not show that we will be poorer in the future than we are today," May told MPs in parliament. "It shows that we will be better with this deal."
"Our agreement is the best deal available for jobs and our economy allowing us to honor the referendum," she said, citing the 2016 vote to leave the EU.
On Wednesday, she went to Scotland, who voted forcefully to stay in the EU in the 2016 referendum. Scottish Prime Minister, Nicola Sturgeon, said the May agreement was "bad" and that his Scottish national party will vote against.
The Brexit Deal for employment and our economy explained in 60 seconds#BackTheBrexitDeal pic.twitter.com/sqj3QgQbeu
– Theresa May (@theresa_may) November 28, 2018
Jeremy Corbyn, head of Great Britain main opposition Labour Party, She told May that she was running "the most shambolic government out of memory" and that she should "accept the reality" that Parliament would not support the agreement.
"It's not hard to be the best deal, if that's the only deal," he said. "By definition, it's also the worst case."
It is the most shambolic government of RAM.
Today at #PMQs… pic.twitter.com/5nPLrJEil8
– Jeremy Corbyn (@jeremycorbyn) November 28, 2018
Some Brexiteers believe that the Brexit deal keeps Britain too closely chained in Brussels, while pro-European MPs think conditions are worse than staying in the bloc and want a second referendum.
An online survey of 1,030 adults on the Daily Mail revealed that 37% of them supported the transaction, up 10% on Nov. 15 – and 35% opposed it. decrease of 14%.
According to the survey conducted Tuesday, 41% wanted MPs to vote in favor of the agreement and 38% of them.
SOURCE:
Al Jazeera and news agencies
[ad_2]
Source link
