Germany, the EU’s most powerful economy, has urged Prime Minister Theresa May and the EU’s chief negotiator, the pompous French clown Michel Barnier to do all in their power to avoid a hard Brexit due to risks of French instransigence disrupting the financial sector. This would be catastrophic for the EU’s financial markets, though the leading German economists say the prospect is becoming “more likely every day”.
German website Handelsblatt commented: “If both sides remain stubborn, this can jeopardise the stability of the financial markets. “If both sides remain stubborn at the end, it could jeopardise the stability of the financial markets. For the money industry, Brexit is about much more than the question of how many bankers are moving from London to Frankfurt, Paris, Dublin or Luxembourg.”
“The City of London is the undisputed financial centre of Europe, nowhere is there more liquidity, nowhere is there so many securities transactions. An unregulated Brexit would not only cost the city market share, it would also cause disruptions in the financial infrastructure, which in the worst case could lead to precarious bottlenecks.”
“When talking to European bankers, the managers are almost religiously reiterating that they are preparing for a hard Brexit, after all, you have to be prepared for the worst case scenario.”
The commentary ended with and appeal that “common sense will prevail” on both sides.
The publication also stressed to Mrs May and Mr Barnier the urgency to get a deal done as the March deadline is now seven months away. Barnier however has simply said “no” to all UK suggestions and reiterate that we must accept all conditions laid down by Brussels. Several of the British negotiating team have resigned over May’s attempts to compromise with the EU, while should she yield any mor ground to the pen pusher Barnier, her own party will rebel and could oust her as Prime Minister.
Handelsblatt said: “By October, conditions for Brexit should be negotiated, so politically we are facing a heated autumn.” Well they got that right.