EU Teetering on total financial collapse /// Britain well-positioned to avoid fallout


It asserts the Covid-19 will alter the Brexit negotiating framework and expose debt.  Former Cabinet minister Owen Paterson will chair the CBP, backed by a Group of directors such as Labour MP Graham Stringer, DUP MP Sammy Wilson and former Brexit Party MEP Matthew Patten.                                                        

John Longworth, former Director-General of the British Chambers of Commerce, will be responsible for daily management Together with Senior Adviser Edgar Miller, also Convener of Economists for Free Trade.  CBP has concluded that the ensuing slump caused by Covid-19 will blow the lid off deep-seated flaws inside the eurozone setup 20 years back.    

Once the UK renders the EU’s frame at the end of 2020, this financial risk should be lower for the UK itself and the global financial market, and it’s more likely that the danger could be mitigated by collaborating with other international financial centres.  They warn that a recently released report identified the foundation of the eurozone financial regulatory system relies on hazardous state debt that is wrongly handled by the eurozone because of riskless liquid sovereign debt.    

The impact of the virus crisis on countries, such as Italy, maybe that of a”financial Chernobyl” exposing the fatal defects within a currency union without the fiscal and monetary forces to cope with a massive fall in output driving tens of thousands of European companies to the walls.  The specialists say Britain is well-positioned to avoid the fallout from such a crisis because it chose to keep the pound and Town authorities have been taking action that protects the global financial centre based in the united kingdom.  But the UK must still take great care to avoid getting sucked into the looming eurozone economic catastrophe via obligations to the EIB and other agreements with the EU.   

This ought to be a guiding principle in our Brexit negotiations and could protect us and the global financial market – from the activities of others. Mr Longworth explained: “Covid-19 has generated cause for another form of quantitative easing (QE) and will cause several pits of lousy debt to deepen in Southern Europe.

“It is possible that the entire edifice may be teetering on the verge very soon. “The entire political and economic raison d’ être of Germany, especially, and of France, is dependent on the EU project and no doubt they will do everything possible to continue to defy gravity.

“It is not in our interest to see a precipitous collapse. We must place as much distance between the eurozone as possible -. “The realpolitik of the huge bargaining tool this gives the UK shouldn’t be lost on us, just as the USA saw its opportunity at Bretton Woods after World War II.” Mr Patten added: “The period of recovery could belong, but the countries which emerge the most powerful will be those who can manage their laws and affairs to suit their circumstances. For all the hardships that we face, we shouldn’t eliminate the sight of this fact that regaining those kinds of liberty was exactly why the UK voted for Brexit in the first place.”


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