Wednesday, 19 April 2017

UK Election Will Bring Much Needed Support For Brexit Talks

Through the election in the UK the government will earn the support of the population and determine a concrete Brexit position before EU discussions begin.

The recent decision by Prime Minister May to call an election in the UK has caused the British Pound to rise sharply alongside domestic and international investor sentiment. Both the markets and investors have displayed their confidence in a stronger, possibly even more cooperative Britain. It is believed that an undivided United Kingdom will be in a better position to negotiate a favorable exit from the European Union.

The move by the British government to call an election, forces the nation's other political parties to establish and articulate their position on Brexit. This will help the country work through points of contention and craft a deal that benefits the people of the UK, Britain's economy, and worldwide investors who have invested (or plan to invest) in the country. Determining a concrete position before EU discussions begin will earn the support of the population, and thus make establishing policy much easier going into the Brexit negotiations.

From the viewpoint of investors, a clearly unified Great Britain - going into and coming out of talks with the European Union - will make a great destination for investment dollars. In particular, the UK's shipping and finance industries are two well-established sectors that already appeal to the investment community, and stand to lose the most from a hard Brexit. If the British government is to continue to profit from these key areas, a deal with the EU will have to ensure that UK trade and investment are able to continue to make valuable economic contributions.

The most important thing that the United Kingdom needs in its divorce from the European Union is support. Prime Minister May, or whoever wins the election, will need the support of constituents and members of parliament to navigate a course through the dangerous waters ahead. Only with all hands on deck will Britain's government keep its ship from sinking, and bringing down the UK's economy with it.

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