In or out?

Are we in or are we out of Europe? It’s an interesting question and one that depending on which side of the fence you’re on will return a different answer. Whatever your view, Europe is beginning to wonder too, writes Adam Bernstein.

A report in The Guardian, published on 30 June, is suggesting that ambassadors from a number of the larger EU states are reviewing whether the UK will actually leave the EU come March 2019.

According to the report, they seem to think that the UK could reverse its Brexit decision. It appears that while British civil servants are not saying that Theresa May’s government is going to change its stance, their EU counterparts are becoming a little bothered by the fact that the British government has offered no detailed plan for Brexit and that there seems to be both hesitation from the higher echelons of the government as well as internal splits.

It’s a point well made. One minute chancellor Phillip Hammond is for the block, next he’s proudly standing his ground with May watching on the sidelines.

HM Treasury wants to remove uncertainty – after all, it’s bad for business and not terribly helpful for the economy. Equally, there’s nothing concrete coming Europe’s way.

One month on from what was a disastrous call for an early snap election by May, the pound is poorer against the euro and the dollar. However, there is one small glimpse of hope for importers – much to the chagrin of exporters. The pound may rise if, as appears likely towards the end of the year if not in the next few months, we see a rise in the interest rate. Why might this happen? The economy could need reining in if there’s a global boom and if British businesses see off the uncertainty caused by Brexit. One way or another, people are going to squeal.

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