Group of UK business leaders looking to encourage Brexit from UK
The world is watching as Britain enters talks with the EU, and Greece with the IMF and the ECB – but which possible exit are the markets most concerned about?
Grassroots initiatives have begun to encourage a Brexit from the European Union. The campaign is being spearheaded by a select group of British business leaders known as the No Thanks – We’re Going Global group. The campaign is fast gaining momentum ahead of the 2017 referendum on European Union membership.
With Greece defaulting on its debt repayment obligations and likely to experience a Grexit from the EU, all eyes are now on Britain and its possible actions moving forward. There is a prevailing opinion that Britain will prosper outside of the EU, unlike Greece.
For the most part, the European Union has not been an easy experience for struggling member nations like Greece, Spain, Italy and others. By the same token, the EU experience has been difficult for member countries that are prospering such as the United Kingdom.
The British business leaders from the campaign group have already raised £7 million to promote the idea of a Brexit from the European Union. For now, all eyes are clearly on the tenuous situation with Greece, and a Grexit is looking increasingly likely given the discord in the Greek political establishment.
British growth prospects outshine EU prospects
According to the CBI (Confederation of British Industry), the growth projection in the United Kingdom is expected to be around 2.7% for the current year. But the economic growth rate of the European Union is only pegged at 1.5% for the year.
There are valid concerns within Britain that an inextricable economic and political connection to the European Union will do nothing but hold Britain back from achieving its full growth potential. A Greek exit is likely to garner substantial international attention and have far-reaching economic implications, but a Brexit is viewed differently – perhaps with a degree of optimism from many in the international community.
No Thanks – We’re Going Global has big backers in Richard Tice and Arron Banks. The latter is closely associated with the UK Independence Party, and the campaign group’s aims will clearly resonate with UKIP members, but it is keen to dissociate itself from political leadership, and still more from the xenophobic elements of the far-left Syriza party in Greece.
Commonwealth nations offer strong economic growth prospects for Britain
The British are looking to peg their financial future on private enterprise. Globalisation is increasingly being perceived as a way to grow the British economy. The focus has shifted away from politicians in favour of the business sector.
A strong affinity with the private sector is perceived to be the key to restoring Britain’s former economic and political glory. But it’s not only a focus on private enterprise and diminished government involvement that has captivated the attention of British business leaders. There’s also the attraction of old bonds with former allies.
The European Union is but one conglomerate that Britain can choose to be a member of. As the master of the Commonwealth, Britain has access to a multitude of markets that span far and wide. These include Canada, South Africa, Singapore, Malaysia, India and even Hong Kong.
These economic powerhouses are just as beneficial to a strong and independent United Kingdom as membership of an ailing European Union. The economic growth prospects of many Commonwealth countries are strong and in stark contrast to the flagging fortunes of several European nations that are dragging down the overall prosperity of the union.
Economic rationale for British independence from EU
A fierce debate is raging in British political circles about membership of the EU. That sterling had not been replaced by the euro is a hot potato that gets passed around all too regularly. Unlike European banks, the Bank of England has had centuries of financial savvy to manage its debt-to-GDP ceiling.
And if the Europeans acceded to the Maastricht Treaty of 1992, they would have limited government expenditure to 3% of Gross Domestic Product per annum. And the debt/GDP ratio would be at most 60%. The European Central Bank took its time to cut interest rates, and did so rather mildly as Germany was in opposition. That a European recession has resulted is due in part to a policy of stringent austerity measures.
There are those in the UK who believe that it is impossible to have a currency without a state, and a blanket solution for all EU member countries seems disingenuous at best. The euro has been subject to a 25% devaluation since 2008 and the Grexit is bound to send the currency further into the red.
The inconsistency of policy acceptance throughout the European Union is also a cause for concern. While the terms of the Maastricht Treaty of 1992 were ignored by France and Germany, when Ireland faltered, Brussels responded with sharp criticism. This inconsistency of purpose is what drives the debate for British independence from the EU.
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