A messy Brexit could have “significant consequences” and is the biggest short-term risk to the British economy, Christine Lagarde said to Portugal’s state council, the Portuguese president’s highest consultative body.
“All likely Brexit outcomes will involve net costs for the UK economy. But the higher the impediments that arise in the new relationship with Europe, the higher the cost,” added the IMF chief.
Britain is due to leave the European Union at the end of March, but Theresa May’s government is still trying to arrange a raft of changes to the Brexit deal in order to win support from MPs.
Lagarde said that EU states will be affected by the UK’s exit, “to varying degrees,” and that Brexit was, “the most significant near-term risk to the UK economy” if the country left without a deal.
Lagarde stated that, Portugal, whose largest tourist market is from Britain, will be hit if there is a hard Brexit.
“Important trade and tourism links could be disrupted, and a loss of financial market confidence outside your borders could lead to higher sovereign and bank interest rates, which would weigh on growth,” Lagarde told the council.
Comments
I hope you are right, but the working class of Britain will have to elect a different government as the Conservative party are only interested in paving a golden path for the rich and powerful.
I am astounded at how badly working class people are treated in Britain, the unions seem to have little or no say anymore.
hmm.
The English involvement there is a disgrace. It shows how a minority can hold a Country to ransom. She has too put the votes of 16.5 million people before a minority group .
I would be happy with a no deal. We need to re build and re structure and yes it will be hard but never under estimate the resolve of the Brittish working class..
Your prime minister is not going to succeed as she has the ulster unionists (DUP,) who will not negotiate with her to find a compromise, in fact they will punish her if she dares to go against them.
Brussels has reached an agreement with Mrs May but she is handcuffed by the Irish border issue.
HMM.
If you look back before the second world war our prime minister of the day bought us time with negotiations . While we geared for war .
I have business interests in Europe and the UK. When push comes to shove I will
put my money were my loyalty lies. Why becouse i am proud to be English. Two generations of English men and Women gave there lives so i and you have the freedoms we share today. I will not be dictated to by Brussels..
Quoting Chip:
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Two years ago Mrs May informed an audience at the UN that Britain was going to be a "Global Leader " in finance and commerce after Britain leaves the European Union... What has happened that Britain is now begging for a deal.
If Britain is going to be a world leader, then why is it bothered by having a trade deal with the EU.
Britain can just walk away from the EU, but the fact is that the government of Britain depends heavily on being a member of the EU for its financial success that it can't walk away without a deal, Mrs May and the City of London financial services are fully aware of this and that is the reason that the British government is insisting on a deal that keeps Britain in close alignment with the EU Single Market.
While some EU countries complain about the way the EU is operating, they have no intention of ever leaving this great institution as the majority of there citizens can see the benefit of being part of a unified group of countries.
Of course it's not just the UK which will suffer if the EU maintain their current intransigent stance.
The reality is the Britain is punishing its self.
Britain should just walk away without a trade deal ... it's that simple...