29th June 2018
Brexit “Peace Deal” eases UK political risk
This week the government won a hard-fought compromise in its Brexit negotiations. Following a series of standoffs and late-night crisis talks, it finally found some middle ground and with a dose of pragmatism, managed to come away with a win.
Unfortunately, this wasn’t with the European Union but its own MPs over what comeback they would have in the event the Government screws everything up. While there has been no progress on the customs union, single market or the Irish border, at least now there will be a debate on their proposed solutions to these issues. It is worrying that until now they were expecting to agree to the final terms without telling anyone what they were.
Meanwhile, on the continent, there was some good economic news. Eurozone growth figures released this week have shown an unexpected uptick, driven by France and Germany. With everyone focused on Italy it is easy to forget that the Eurozone’s core comprises the 4th and 6th largest economies in the world. While many parts of it might be dysfunctional, and at times imploding, ultimately its performance will be driven by these two countries.