The obvious question for Brexiters and for Britain is:
What did you expect?
1.
theguardian.com/world/2023/mar…
What did you expect?
1.
theguardian.com/world/2023/mar…
The response is fairly typical. "Well Britain can set its own rule and buy British" and so forth.
But actually this is a problem of Brexit that is widespread in different industries and likely to be exacerbated.
2.
But actually this is a problem of Brexit that is widespread in different industries and likely to be exacerbated.
2.
Britain is a large arms producer. It is also host to a major financial centre.
In both cases Brexiters insist that UK will continue exporting and trading because it is "important".
Here though we can see the lie become apparent.
3.
In both cases Brexiters insist that UK will continue exporting and trading because it is "important".
Here though we can see the lie become apparent.
3.
The synergies and cash available within Europe will simply divert investment into Europe; UK manufacturers will not be able to compete; the UK will end up either buying more expensive be less high quality arms, or buying European (or American) arms.
4.
4.
Ultimately this means a transfer of wealth (and knowledge, and security) to Europe.
And for the City of London? It is obviously much more dominant that the UK arms industry, and it is a more complex industry.
5.
And for the City of London? It is obviously much more dominant that the UK arms industry, and it is a more complex industry.
5.
But the City has cut itself off from its enormous hinterland that ran from the Arctic to the Algarve, from Connacht to Crete. That is not without consequences. It cannot offer the integrated synergies, with the best will in the world, that European centres can.
6.
6.
Money is already starting to leave London and pool in European centres (and indeed flee for Zurich, NYC, HK and Dubai).
Certain niches will survive, of course (Russian money, for example, tax evasion, particular funds), but Brexit means being shut out of the natural
7.
Certain niches will survive, of course (Russian money, for example, tax evasion, particular funds), but Brexit means being shut out of the natural
7.
hinterland and market, to the detriment of specialist areas where the UK had a comparative advantage, like the City and the arms industry, chemicals, pharma., fishing, and pretty much everything else you care to name.
#Brexit
#ThankEU
Ends
#Brexit
#ThankEU
Ends
PS Britain may remain a boutique arms manufacturer, in much the same was as Brexit's causing the death of mass car production will still leave some Formula 1 teams based there.
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