In the political sector there is a lot of talk about the Brexit, yet again. Despite the dice being cast several months ago, there is still no resolution in sight. Experts are now expressing their concern over how a Brexit without a transitional deal could cripple the UK economy. This seems like an odd statement, considering that there are rumors about reverting the Brexit decision if possible.
The UK Needs Brexit Clarification More Than Ever
Political decisions are hardly ever straightforward, and most of these outcomes will make little sense to most people. The Brexit decision is one of those examples, as the full repercussions of this decision have yet to become apparent. One thing is sure, though: troubling times are ahead for the UK economy.
Assuming the Brexit will continue as planned, which is far from certain right now, Britain will need a transitional agreement. Breaking up from the European Union will have ramifications, and the UK loses one of their main trading allies in the process. It is up to individual political representatives to work out a gracious exit plan that works for everyone.
The Royal Bank of Scotland is rather concerned over these developments in their current form. Right now, there is no new trade agreement between the UK and Europe. If no deal exists when the Brexit is finalized, the British economy will go into a long and negative spiral. Such a situation needs to be prevented at all costs, albeit that is much easier said than done.
For the time being, banks and other financial institutions are preparing contingency plans for every type of scenario that may occur. The biggest problem with such plans is pulling the trigger on it during a crucial phase. Doing so could have either positive or adverse effects, which causes even more financial uncertainty.
One thing working for Britain in securing its transitional deal is how European companies will feel an economic shock after breaking up with the UK. Considering how this will affect all 27 countries making up the EU, it is well worth the time to work towards an amicable solution.
Regardless of how this scenario plays out, it is evident that the financial world as we know it is going through some very rough patches. Political decisions are making life difficult for the average person, which is not the direction in which things need to evolve. These are worrisome times for the Britons, as well as for the rest of Europe.
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