Shropshire Star Comment: Don’t hide full impact of EU exit
Whither Brexit. We were told we could expect £350 million extra per week for our NHS, trading relationships with Europe that were broadly similar to those we enjoy now, and control of our laws and borders, it seems we’ve achieved very little.
Europe has dug its heels in, as we might have expected, and Britain is facing an EU exit that seems uncertain and disorderly.
Theresa May has had to offer greater financial inducements than she might have liked as Brexit’s European politicians have held the whip hand and dictated the terms and conditions of negotiations.
As we head deeper into the process and closer to the cliff edge, we have yet to see the clear skies we might have wished for.
And while those with firm nerves and a refusal to blink might vow things will turn out well in the end, the uncertainty and instability is damaging to business and long-term confidence.
The most recent development is that David Davis has been summoned to a House of Commons select committee to explain his decision not to release full details of the Government’s assessment of the economic impact of Brexit to MPs.
It hints at a lack of transparency and fuels the fears of those who believe the process may lead to self-inflicted economic damage to the British economy.
The challenges facing Theresa May continue to mount. Intentionally or not, the Brexit saga is creating a lack of confidence in the Government.
The Prime Minister needs to regain control of the situation and restore confidence in the process before any lasting damage is done.
All is not doom and gloom, however, and there is a chink of light for the Government with banks saying they could withstand a disorderly Brexit.
Britain’s major lenders have sufficient financial strength to ward off any stresses that may emerge.
Since the financial crash of 2008, they have been gradually putting improved systems in place. And, at long last, they are in a position to cope with the worst of all scenarios.
Regulatory frameworks are now more robust and banks better prepared than they were a decade ago. Much work has been done, which is beneficial moving forward. Banks may be able to withstand a worst case scenario – but let’s hope we don’t have to put that to the test.
