EU thinks UK could be hit 10 times as hard by no deal News - The Independent


The UK daily, the Independent, carried the latest analysis by the European Commission that showed the European Union (EU) officials are working on the basis that the UK's economy will be hit up to 10 times as hard by a no-deal Brexit.

Key Highlights from the Documents:

A "state of play" document put out by the commission this week, meant to brief EU leaders, MEPs, and central bankers on the current situation, cites a 2019 estimate by the IMF that the long-term effect on the EU's GDP by a no deal will be "well below 1 per cent".

The commission says this is "in line with most other studies".

"As the commission has constantly stressed, contingency measures can only mitigate the most significant disruptions of a withdrawal without an agreement. While the commission does not speculate on the possible economic implications of different scenarios, it is clear that a withdrawal of the United Kingdom without an agreement would have a serious negative economic impact, and that this impact would be proportionally much greater in the United Kingdom than the EU27 member states.”

"Preparations by member states and stakeholders are likely to reduce their individual exposure to the negative impact of a withdrawal without an agreement. A high level of preparedness across all sectors of the economy will also mitigate the negative impact.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Forex News


Latest Forex News

Editors’ Picks

AUD/USD extends the break above 0.70 on coronavirus vaccine hopes

AUD/USD extends its break above 0.7000, hitting the highest level in five weeks. The pair benefits from the risk-on market mood amid coronavirus vaccine hopes. The bulls remain undeterred by the latest US-China tensions. 

AUD/USD News

Gold: Daily chart shows temporary uptrend exhaustion

Gold's daily chart shows a bearish divergence of the MACD, a sign of uptrend exhaustion. A break below the 10-day SMA could prove costly. The metal looks vulnerable to price pullback.

Gold News

USD/JPY: All eyes on BOJ to extend run-up past-107.00

USD/JPY refreshes the intraday high following a U-turn from 107.15. Increasing hopes of virus vaccine follow Wall Street's performance to recall the bulls. News that Tokyo will raise the pandemic to the highest levels, fears of an escalation in the US-China tussle challenge sentiment.

USD/JPY News

WTI: Prints another pullback from $41.00

WTI takes a U-turn from $41.08 to mark fifth failure to stay beyond the $41.00 threshold. 21-day EMA, a three-week-old support line restrict immediate downside. June month high, 200-day EMA offers strong resistance.

Oil News

Euro nears 4-month highs, CAD rate decision

Over the past few weeks, euro has been one of the best performing currencies. It rose to a nearly 4 month high versus the US dollar despite weaker than expected economic data.

Read more

Forex MAJORS

Cryptocurrencies

Signatures