Jump to content
BANGKOK
webfact

Extreme Brexit could be worse than financial crisis for UK: BoE

Recommended Posts

3 minutes ago, My Thai Life said:

Really?

 

As I posted a while back, more than 200 British SME chief executives and entrepreneurs have called on Conservative MPs to vote down Theresa May’s Brexit deal, describing it as “the worst of all worlds”.

 

Their preferred alternative is to leave the European Union without a deal. They say “At present, 92% of British companies do not trade with the EU at all. And this 92% account for 87% of the UK economy.”

 

Yet this 92% are still encumbered by EU regulations.

How encumbered are they? According to the World Bank Ease of Doing Business index, Denmark ranks #3 in the world and the UK #9. Both rank very high. Is the EU somehow making business more difficult for the UK than for Denmark? For reference, the USA ranks #8.  Out of the top 20 nations, 8 are in the EU. Not every problem an EU country faces is the fault of the EU.

https://en.wikipedia.org/wiki/Ease_of_doing_business_index

 

Share this post


Link to post
Share on other sites
On 12/21/2018 at 5:24 PM, tebee said:

Firms are pausing or diverting investment

This is a good argument for no-deal.

 

It gets us to the real negotiation more quickly than any other option. May's WA just postpones the real negotiations for another year or 2 or 3 ....

 

Everyone seems to understand now that the WA is the weakest position for the UK to negotiate from, as well as being more expensive.

Share this post


Link to post
Share on other sites
2 minutes ago, bristolboy said:

How encumbered are they? According to the World Bank Ease of Doing Business index, Denmark ranks #3 in the world and the UK #9. Both rank very high. Is the EU somehow making business more difficult for the UK than for Denmark? For reference, the USA ranks #8.  Out of the top 20 nations, 8 are in the EU. Not every problem an EU country faces is the fault of the EU.

You're looking at this question through the wrong end of the telescope.

 

Obviously the UK is one of the easiest places in the world to do business. We invented free trade and the legal apparatus to support that.

 

The idea that the 92% of British companies who don't do business with the EU should waste time and money complying with EU regulations is clearly farcical. Only someone driven by ideology could fail to see that.

 

  • Like 2

Share this post


Link to post
Share on other sites
Just now, My Thai Life said:

You're looking at this question through the wrong end of the telescope.

 

Obviously the UK is one of the easiest places in the world to do business. We invented free trade and the legal apparatus to support that.

 

The idea that the 92% of British companies who don't do business with the EU should waste time and money complying with EU regulations is clearly farcical. Only someone driven by ideology could fail to see that.

 

How difficult can it be to comply with those regulations if Denmark is the 3rd easiest country in the world to do business in? And Norway which is an EFTA nation is #7. Both ahead of the USA.

Share this post


Link to post
Share on other sites

"After leaving, the British government could weaken social, employment and environmental regulation to some degree. But half of the estimated cost of these EU regulations comes from just two policies: the Renewable Energy Strategy and the Working Time Directive. Scrapping these regulations would mean abandoning Britain’s renewable energy targets and removing rights such as the entitlement to 20 days paid annual leave – and this would be politically difficult. "

http://ukandeu.ac.uk/fact-figures/how-does-the-eu-impact-small-businesses-and-what-benefits-could-leaving-present-them/

Share this post


Link to post
Share on other sites
6 minutes ago, bristolboy said:

How difficult can it be to comply with those regulations if Denmark is the 3rd easiest country in the world to do business in? And Norway which is an EFTA nation is #7. Both ahead of the USA.

As I said, you are looking at it through the wrong end of the telescope.

 

It is absurd for the 92% of British companies, who account for the 87% of the UK economy to waste time and money complying with regulations they don't need and don't use. This is surely self-evident.

 

If you're still not getting the point, then do some research: calculate the number of UK companies in the 92%, multiply by a notional annual cost for unnecessary EU compliance, factor that into the project fear "forecasts" (because none of the project fear forecasters have done so) and send your results to the New York Times. You will be adding to the debate.

 

  • Like 1

Share this post


Link to post
Share on other sites
2 minutes ago, My Thai Life said:

As I said, you are looking at it through the wrong end of the telescope.

 

It is absurd for the 92% of British companies, who account for the 87% of the UK economy to waste time and money complying with regulations they don't need and don't use. This is surely self-evident.

 

If you're still not getting the point, then do some research: calculate the number of UK companies in the 92%, multiply by a notional annual cost for unnecessary EU compliance, factor that into the project fear "forecasts" (because none of the project fear forecasters have done so) and send your results to the New York Times. You will be adding to the debate.

 

It's you who is ignoring reality. How much encumbrance can there be if Denmark, Norway, and the UK are so much easier to do business in than the rest of the world? The United States is a huge continental economy with far smaller percentage of foreign trade as a component, and yet Denmark and Norway come out ahead. And the UK is virtually tied with it. Where is the burden? You could on asserting that there is one but where?   As the excerpt I posted pointed out the UK is going to have to post its own regulations that now come from the EU. So it's not like these regulations are an added encumbrance. It's what the UK would have to have anyway. 

 

Share this post


Link to post
Share on other sites
Guest
54 minutes ago, bristolboy said:

How encumbered are they? According to the World Bank Ease of Doing Business index, Denmark ranks #3 in the world and the UK #9. Both rank very high. Is the EU somehow making business more difficult for the UK than for Denmark? For reference, the USA ranks #8.  Out of the top 20 nations, 8 are in the EU. Not every problem an EU country faces is the fault of the EU.

https://en.wikipedia.org/wiki/Ease_of_doing_business_index

 

EU does enable businesses to flourish. That's the British definition of EU. For the rest of us, EU has far more deeper meaning on our real life Values.

 

The size of economies matters. Denmark is a tiny little country compared to the mighty UK.

 

While Denmark shows that it's beneficial to be part of the far larger economy, does it mean anything for the mighty UK?

 

UK is a tiny economy when compared to the mighty ones. China, USA, EU.. and coming India, perhaps Indonesia and what will become South America later on. 

 

UK's economy is going to shrink quite a lot as UK's economy is based mainly on services.

 

Services require access to other parts of the world. That will end due Brexit.

 

Services are highly dependent of trust. "I trust you to take good care of my money". Not paying the 39 Billion divorce bill? Say goodbye to the Trust UK build up over the last 200 years. It's gone.

 

So yeah, UK is pretty much done by now. It's time for us all to see new potentials with more willing and more wholehearted partners.

 

 

Share this post


Link to post
Share on other sites
Guest
30 minutes ago, My Thai Life said:

The question is "how much time and money are the 97% of British companies who contribute 87% of the UK economy, but don't do any business with the EU, wasting on EU compliance?" Answer - a lot. So much so that 200 SME CEOs wrote to the British Prime Minister about it.

Nah. The question really is how much protection do the UK folks want of the products which are sold to the people of UK?

 

How much power you'll give to the manufacturers and importers to import lesser tested product to be used by your people in the UK.

 

EU does that for each of us. The overwhelming regulation actually works for our wellbeing. It's hard to imagine, no?

Share this post


Link to post
Share on other sites
45 minutes ago, My Thai Life said:

You have completely missed the point for the 3rd time.

 

The question isn't "what worldwide rank does the UK have in ease of doing business?". We all know the UK is one of the easiest places in the world to do business, because we (the UK) invented free trade and the legal apparatus to support it, along with a few of our historical European friends.

 

The question is "how much time and money are the 97% of British companies who contribute 87% of the UK economy, but don't do any business with the EU, wasting on EU compliance?" Answer - a lot. So much so that 200 SME CEOs wrote to the British Prime Minister about it.

 

By the way, I am not a born again free-trader. I can think of numerous controls I would like to see introduced by the UK domestically. But only under our sovereign control.

 

Forcing EU companies to comply with EU regulations when they have no trans-EU business is one of the many casualties of the Customs Union. It is completely unnecessary and has massive associated costs which have never been assessed.

How could it have massive associated costs if doing business is so easy in these EU nations. What you are claiming makes no sense.

  • Like 2

Share this post


Link to post
Share on other sites
Guest
40 minutes ago, My Thai Life said:

The question isn't "what worldwide rank does the UK have in ease of doing business?". We all know the UK is one of the easiest places in the world to do business, because we (the UK) invented free trade and the legal apparatus to support it, along with a few of our historical European friends.

This is probably what explains the best, the way British people think of the past like it would somehow represent the present world.

 

Yes. Britain had everything a country could want. 

- Britain had the language. Everyone of us are talking in English when communicating with each others. I personally have used several other languages, so it's not just English.

- Britain had access to the Great EU markets. 

- Toyota thinking: We can communicate in English, we can trust the Brits being reasonable, we can have full access to the EU markets. Let's build our factory to Britain.

- Many other companies thinking in the similar way. Britain was the easy way, the English speaking way, to gain access to the EU.

 

Well, now, most of us are able to communicate in English. That's the de facto Esperanto anyway. We no longer have to care nor love the British to simply talk with each others. Britain became redundant, when it comes to the language itself. Most of us speak far cleared American English anyway. 

Share this post


Link to post
Share on other sites
18 minutes ago, bristolboy said:

How could it have massive associated costs if doing business is so easy in these EU nations. What you are claiming makes no sense.

I honestly don't understand why you don't understand. But I assume you're being honest in what you say, so I'll try to explain. All figures below are taken from the UK SME CEO news item that I referenced a few weeks ago.

 

92% of British companies don't have any business with the EU (I think I mis-typed 97% before). But this 92% still has to comply with EU regulations. This compliance costs time, money and resources. It is completely unnecessary for the 92%. (So 100% of companies are facing EU regulatory compliance expense but only 8% trade with the EU.)

 

Add to this the fact that this 92% represents 87% of the British economy. (So 100% of UK business faces EU regulatory expense even though only 13% of the economy is with the EU.)

 

Add to that the fact that this is ocurring in all EU countries (obviously the %ages will vary in each country). It really is madness.

 

Edited by My Thai Life
  • Like 1

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...