With Brexit now a reality. A new era has begun for the UK. The outgoing governor of the Bank of England, Mark Carney, foresees “a decade of potentially profound structural change for Britain”. No one in Britain harbors any vain delusion that it is going to be a cake walk for Britain to make those structural and regulatory changes.
The path to former economic glory is steep, slippery and uphill, not to say far more competitive than it was back in the 70s, when Britain possessed superior technological as well economical advantage.This was the pre-google, Amazon, Tesla, Twitter and Smart Phone era. European economy from one end to the other is flirting with recession and Britain seeks to shake off the monkey on its back by Brexit.
With Brexit, Germany faces the reality of being the unwilling banker for the rest of Europe
Britain believes that Brexit allows it the freedom to course correct itself, and fix a spluttering economy by leveraging on its strength. Britain is no longer a manufacturing powerhouse it used to be. Housing market growth has limited impact for a country the size of Britain.
Dubai has taken over as the trading destination as well as world has found cheaper oil beyond North Sea. A decade of miniscule and uneven 0.5% annual output per worker has resulted in sustained deep financial set backs.
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Britain has its work cut out, since, investors are looking for stability as well as good investment opportunity to bet their money on. Especially in light of global downturn that seemingly lurks just round the corner.
With no single market at its disposal, Britain for sure looses a its competitive advantage in the shorter run.The challenge is, and the world, though not actually waiting, but for sure is curiously watching to see how fast and how effectively Britain can frame its own much promised regulations that will interest investors.
However, it is not that the other European nations are shining bright and high in economic front. Britain led the pack and performed best amongst the rest.
With Brexit, Germany faces the reality of being the unwilling banker for the rest of Europe
Will Europe Bite The Bullet Now?
The bitter pill that has the European union has failed to swallow is that to have a centralized budget or a centralized financial institution or banking union.
Not just competition within Europe, Chinese companies have managed to usurp its European as well as American rivals in technological growth, manufacturing cost effectiveness and ease of business. Britain has to hit the ground running without faltering and therein lies the challenge.
Arpit Sharma from London - U.K.
write to the editor@vpatrika.com
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