What kind of transitional process will be put in place once the government triggers Article 50 and begins the formally leaving the EU?
This week, members of both the Labour and Conservative parties put pressure on the prime minister to reveal her plans for Brexit. Number 10 has accepted the demand and has committed to publishing a full plan before Article 50 is triggered.
Here is a round-up of the top Brexit-related stories this week.
ABI Calls For ‘Clear Commitment’
The Association of British Insurers (ABI) has called on the government to commit to seeking a transitional implementation agreement with the EU.
The ABI wants the government to try to secure an appropriate regulatory environment for the UK and to retain the ability to passport out of and into the UK.
Huw Evans said:
“This is in both sides’ interest, would not be a sign of negotiating weakness and is essential if we are to maximise the smooth running of the financial system after 2019.”
Fall In Migration Could Lower GDP
Migration from the EU to the UK could fall by more than half in the period until 2020, according to the National Institute of Economic and Social research (NIESR).
The effect would be a reduction in GDP per capita of 3.4% by 2030, with a less than 1% boost to low paid workers in the most directly affected sectors.
Jonathan Portes of the NIESR, said:
“Our estimates suggest that the negative impacts on per capita GDP will be significant, potentially approaching those resulting from reduced trade.”
2017 Investment Outlook
Investment companies have begun to issue their forecasts for the investment landscape in 2017.
Schroders predicts that:
- Brexit will have a limited impact on economic recovery in Europe
- European earnings are set to grow at their fastest rate in 5 years.
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