Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Why would the EU want to encourage UK exports to the EU aided by perhaps a 30% cumulative Sterling devaluation rendering EU competitors un-viable? Why not maximize the opportunity to replace UK exports of goods and services with indigenous EU products and services? Can the EU really afford to continue being dependent on a non-member for the production of vital goods and services?
Isn't this backwards? The eurozone has a 1% current account surplus with the UK. It's the EU that is the net exporter in this relationship, not the UK.

In fact it could be a good thing for the eurozone to lose a bit of its surplus.

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman

by Migeru (migeru at eurotrib dot com) on Mon Sep 3rd, 2018 at 08:50:44 AM EST
I'm presuming that a 30% Sterling devaluation would correct that imbalance over time in any case, absent tariff and non-tariff constraints. My suggestion is more about protecting EU businesses from "competitive devaluation" which would render them unviable.

Ireland is the UK's 8th. largest trading partner and the only EU country with which the UK has a large surplus c. £4.2 Billion in 2015 (Goods not services). The UK therefore has a considerable interest in keeping the Irish border open.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon Sep 3rd, 2018 at 09:53:58 AM EST
[ Parent ]

Display:

Top Diaries

Occasional Series