Loads of reasons,
- The weaker sterling is actually helping the UK with their exports and making home produced goods and services cheaper. They were right not to join the euro as they have control over their own fiscal and monetary policy.
- They have the City of London, they are the real people pushing for Brexit, to avoid further punitive regulation from Brussels, look up the Panama Papers issue.
- Their lower tax band is 20% up to £50k, here it is €35k, making the top rate of tax 48.5% between that and €70k, 52% thereafter, the other EU countries have similar high taxes. The UK worker and business people have money in their pockets to save and reinvest. I have friends who left Ireland to work there and their outlook is more optimistic that they can achieve a comfortable standard of living. Unfortunately for us the chances of them ever coming back here are slim.
- UK unemployment is low, the average age people join the workforce is lower and their incomes are rising, the rest of the EU is totally opposite. Real incomes haven't budged in 10 years, the EU never really recovered from the last recession. They just kicked the can down the road, that's their answer to everything.
- The EU is mired in debt, both public and private, have older populations and now have negative interest rates meaning there is no incentive for saving, if you have high debt repayments and low savings rates there will be nothing to invest with in the future. The result is a stagnant economy.
- Apart from the Brexit issue, the UK is a more cohesive country than most other EU countries. Look at Italy, France and Germany, they are tearing themselves apart.
- Germany is already in technical recession, having had two consecutive quarters of negative growth, so they are already in worse shape.
- The UK speak English, they are well placed to benefit from any deal with the US.
Some good points there but some I don't agree with.
1. Fair statement on fiscal policy. If your debt is held by outside holders though, it means you have more debt iykwim.
2. Yes, London is a big financial player. However, look at all the organisations leaving. Barclay's moved to Ireland. So did Somerset capital, Jacob Rees mogg's company.
3. Fair point. Higher tax in many Scandinavian countries but the standard of living is higher so it's apples and oranges.
4. Average wages in Britain are 3 pounds a week lower than they were in 2008 relative go the cost of living. The recovery from the last crash has been Britain's slowest economic recovery in 150 years apparently or so I read. Low unemployment is good, but it means you've topped out your recovery. France has similar GDP, but higher unemployment. They have more room to Manoeuvre to increase GDP. Hard to see Britain getting unemployment any lower, they're at the top Of The hill. Only way from here is down.
5. Germany, France, Italy, Ireland, Sweden etc have lower debt to GDP than Britain. Britain haven't balanced the books since 2006 or 2007. Ireland have turned a surplus the last few years, Britain has just drove up their debt. Greece and Spain aren't in great positions but I don't feel their indicative Of The EU as a whole. Look at the cost of third level education in the UK. Students leaving college with 50-60k debt. 9300 sterling a year fees compared to 3000 in Ireland. Investing in the education of your youth is important.
6. A few Quotes I heard while in England last summer. "Scotland had a referendum to leave, why can't we have a referendum on whether or not we want to keep them."
"why can't we give northern Ireland back to you (Ireland)"
The United kingdom doesn't sound all that United to me. Germany is a relatively new country in it's current form. The union of east and west seems to have been seamless.
Somebody here said if a union of nations (the UK) decides a union of nations is a bad thing (EU) it doesn't auger well for a union of nations.
7. Germany is slowing down but there are more countries in the eu than Germany. I'd be a lot more confident of their ability to deal with a recession than the crowd in Westminster.
8.How long will it take them to negotiate a deal? The Japan-EU trade deal took 6 years. Even when it does happen, it will have to be on America's terms. Might is right, and as
@Mf240 said, Britain will have their shite.