The End of the Brexit Transition

As I watched Sky News yesterday one headline popped up and stated that the FTSE and the pound had fallen drastically with the news of the new Covid-19 strain and with France and the EU halting all passenger and freight traffic due to the new strain. The report then went to Ian King, Sky’s Business editor. He gave a good explanation of the fall and the reasons behind it whilst pointing out that the fall was much bigger in the EU nations.

He went on to explain the fall in the UK was made worse as many FTSE 100 corporations trade in the Euro and US Dollar and so therefore the drop in the UK was an effect of the bigger drop on the continent.

I then went upstairs where my Wife had the BBC (Boris’s Broadcasting Corporation) news on with the same story but put in a “we are doomed” tone and importantly no explanation like that of Ian King over on Sky.

We are rapidly approaching the 31st and in nine days we will have left, deal or no deal. Many of those who supported remain are now using the excuse of Covid-19 and the new strain to call for an extension to the transition period. In the words of Margaret Thatcher “No, No, No.”

There are lots of reports and impact assessments and statements from lots of organisations and bodies still full of doom.

An interesting point that has been argued is that UK exports to the EU are declining and will continue to do so. *

*source Full Fact article dated 28 August 2018.

Some of these exports are in fact destined for other countries outside the EU but have to transit through EU ports such as Rotterdam and are added to UK export figures to the EU. This is known as the Rotterdam Effect.

Extract from the Full Fact article :