No-deal Brexit would cost Britain 'tens of billions,' finance minister warns
S E E D E D C O N T E N T
LONDON — Brexit could leave the U.K. worse off than if voters had chosen to remain in the European Union, the country's finance minister admitted Wednesday amid deepening political chaos over the process.
Splitting from the trading bloc without a divorce deal would cost Britain tens of billions of dollars — more than it currently contributes in E.U. membership, Chancellor of the Exchequer Philip Hammond acknowledged.
Britain will leave the E.U. on March 29 but lawmakers are bitterly divided over the terms of Brexit .
"A smooth exit from the European Union, doing this in an orderly fashion, is worth tens of billions of pounds to our economy," he told broadcaster ITV.
It echoed his warning from earlier this year that annual government borrowing in the world’s fifth-largest economy could leap by $100 billion a year by 2023-34 if Britain crashes out of the E.U. in a so-called “no-deal” scenario.
His comments underscore the scale of the decision awaiting lawmakers in the House of Commons, who are expected to vote on a proposed agreement in the coming weeks.
Hammond said lawmakers would be shown estimates of what a no-deal outcome would likely cost its economy compared to “the status quo,” and warned that any attempt by hardline pro-Brexit lawmakers to scupper a deal could result in Brexit being abandoned altogether.
"If the deal is not approved by parliament, we will have a politically chaotic situation ... In that chaos that would ensue, there may be no Brexit," he added.
Prime Minister Theresa May on Thursday hailed a final draft of the agreement , saying a deal was “within our grasp and I am determined to deliver it."
She added: “The British people want this to be settled.”
Her draft declaration will now be screened by national envoys of the remaining 27 EU states in Brussels, followed by a summit meeting on Sunday.
Major questions remain unanswered, such as the future of Gibraltar , the British territory off the Spanish coast that Madrid has been trying to reclaim for centuries.
Both Britain and the E.U. — which will remain its biggest trading partner — need a deal to keep goods flowing across borders that are currently open to free movement.
But May has struggled to untangle nearly 46 years of membership without damaging trade or upsetting lawmakers concerned about unfettered immigration.
The current draft deal allows for a transition period of up to two years in which to finesse the future relationship — but many lawmakers see that as unacceptably slow after voters chose to quit the E.U. in a June 2016 referendum.
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If this transition doesn't happen relatively smoothly, it will be the end of May, but that will leave England in a strange place, The reason this was overwhelmingly popular with the north of the country, was a sense of nationalism, and this will be a big fail. On the other hand, the left is there makes our left look right. Where will this leave this country? This limbo may be the only thing that keeps May in power.
Any alternative ideas?
There is no doubt that the leftists in England make our progressives leftists look downright libertarian......
May would be toast if only for promises not kept.....
Brexit was a bold move, and yes a very nationalistic move..... dealt the one worlders a huge hit politically and hopefully financially. The United States of Europe will have to wait another few generations..... (if it's inevitable at all)
IMHO?
Still a wait and see game.... (with no alternative on the horizon) Although it is a distinct possibility that the ministers of parliment decide for real it's going to slow and force the issue..... That could lead to some very strained relationships and breakups of other alliances.....
But I"m speculating, it's still wait and see, with some I think holding their breath..
I'm kind of with you NWM, but let me read some other comments and see what they bring to the table.
from the article...
Ive "heard" the uk's net contribution to the eu per yr is around abouts 8 or 10 bln
if that is truly the case.. no deal is still the best deal.
the uk can have their country back for the mere cost of a few yrs payment to the eu.
sounds a lot like my divorce actually... LOL best money I ever spent.
few divorces are cheap... cut the cord and send the eu packing, they will return. besides other eu countries being forced to fill the gap of what the uk no longer pays the eu in taxes fees and contributions, if the other eu countries lose that trade with the uk they will have a hard time paying the eu masters their now increased taxes, fees, and contributions.
in the bigger scheme of things? the eu has more to lose by no deal than the uk does.
once the uk stops paying the eu? the eu financial collapse begins the day after that
cheers
So... The goal here is the financial collapse of the EU?
whether ya use the words "goal or "end result"
matters not.
"no deal" means the eu goes broke faster. that is what the eu fears.
funny how the eu was formed to contain germany after ww2.... and then... LOL
the more they push? the more ground the eu will lose.
at this point the eu is already in the toaster, the only question is how long till it burns.
Not quite. it's called the United Kingdom for a reason. It's made up of England, Scottland, Wales and N. Ireland. Right now, as things stand, if this goes through, Scottland might leave the UK and they make up a huge chunk of the GNP of GB.
So it could be a huge lose for England domestically.
The last vote for Scottish independence was pretty close, wasn't it? This might be the tipping point.
Yes, it was and it would not shock me if it was the tipping point. Most Americans don't get that Scottland unlike the rest of the UK, has its own parliament and its own vibrant industry (not to mention it might put BP into question).
This is a very complicated issue for the Brits with many pitfalls along the way.