In These New Times

“In other words, despite its advantages in financial services and language, the UK’s ability to attract foreign investment is likely to be substituted by other EU countries. Once the UK loses its access to other EU markets after leaving the EU, it will also give away its advantage as a Chinese investment hub in Europe. In the same vein, as London loses part of its share of financial operations related to the EU, other cities such as Paris and Frankfurt should increase their capabilities as financial centres, with each probably specialising in different issues.”

This study confirms the obvious: that the UK will sacrifice a beneficial relationship with China by withdrawing from the EU. The irony is that, contrary to the claims of the Leave Campaign, we have lost strategic autonomy by voting “leave” and now appear to be acting in accordance with US interests. On the other hand, our engagement with China may not have been in good faith from the start, being only the other side of the coin of our anti-Russian foreign policy and our attempt to obstruct the emergence of a Washington-Moscow axis. In this case, Brexit could be seen as a salutary corrective although one which exposes the pre-existing fragility of the British economy.

Breugel

19th July, 2016

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