vrijdag 12 oktober 2018

The terrifying reason the EU is playing hardball

Dear Reader,
Ever wondered why the EU is making Theresa May’s life so difficult?
Europe’s citizens don’t want a rift with the UK.
Europe’s businesses want to continue trade.
Europe’s governments need access to our financial markets.
So who’s kicking up a fuss?
I’ll give you a hint. It’s got nothing to do with Britain.
The EU could survive Brexit. Hard or soft, it doesn’t matter.
But what the EU could not survive is the breakup of its pet project, the European currency.
And that’s exactly what’s imminent.
So there’s a very good reason Brexit must look as painful as possible.
It’s because Greece and Italy are poised to follow Britain.
All their politicians need is a shining example. Proof that it can be pulled off.
Once the detractors of Brexit are proven wrong, the Italian and Greek electorate can be whipped up with anti-euro and anti-EU sentiment.
The EU Commission President Junker is perfectly aware of all this. He’s trying to stand firm on EU rules in the face of Italian challenges: "If Italy wants further special treatment, that would mean the end of the euro. So you have to be very strict."
And France’s finance minster is signalling the same on Brexit, according to the Financial Times:
France’s finance minister has insisted that Theresa May’s blueprint for the UK’s future relationship with the EU is unacceptable because it undermines a central tenet of the bloc and would spell “the end of Europe”.
But did you ever think you’d hear the two of them warning about the end of the EU and the euro?
The point is, the Europeans don’t care about us and Brexit.
They’re worried about the end of the euro. And the EU.
And you should be worried about the biggest financial crisis in history that’ll result.

Best wishes, 
Nick Hubble
Editor, Capital & Conflict