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Trichet: Brexit will hit harder the UK than the EU, and “it is totally contrary to the new world”

Saturday, September 22nd 2018 - 07:08 UTC
Full article 3 comments
The ex European Central Bank chairman said it is very much a question of proportion.” The EU's economy is worth about £13tn, compared to the UK's £2tn The ex European Central Bank chairman said it is very much a question of proportion.” The EU's economy is worth about £13tn, compared to the UK's £2tn
“It's normal that the European 27 are less impacted than UK by this event which has been entirely decided by UK, when all the 27 wanted the UK to stay” “It's normal that the European 27 are less impacted than UK by this event which has been entirely decided by UK, when all the 27 wanted the UK to stay”
The EU is the UK's biggest trading partner, accounting for nearly half of all exports in 2016, according to official figures The EU is the UK's biggest trading partner, accounting for nearly half of all exports in 2016, according to official figures
“How many single markets with a single currency will we have which will be enormous in 10/20 years' time? Look at India, China, all those emerging countries” “How many single markets with a single currency will we have which will be enormous in 10/20 years' time? Look at India, China, all those emerging countries”

Brexit will have a bigger economic impact on the UK than the European Union, the former head of the European Central Bank has told BBC Radio 5 Live. Jean-Claude Trichet added the break-up was “totally contrary to the new world” of large emerging economies, with single currencies and single markets.

 Asked how Brexit would affect the other EU countries, he said: “It's very much a question of proportion.” The EU's economy is worth about £13tn, compared to the UK's £2tn.

Speaking to the Wake up to Money program, he said: “If I take the EU as a whole and compare the GDP of the EU to the GDP of the UK, you see there's a small portion which is the UK.”

He added: “It's normal that the European 27 are less impacted themselves than the UK by this event which has been entirely decided upon by the UK - when all the 27 wanted the UK to stay.”

The EU is the UK's biggest trading partner, accounting for nearly half of all exports in 2016, according to official figures.

Brexit supporters argue new, lucrative trade deals can be made with fast-growing emerging markets.

Mr. Trichet suggested Brexit will also be detrimental to the EU at a time of economic growth elsewhere in the world, arguing that it should be avoided “for the sake of the UK in the very long run, and for the sake of our continent”.

He said: “In a period when India, China, Brazil, Mexico, Indonesia, and all emerging economies are going very fast and are dwarfing Europe more and more, how can it be that we decide to separate ourselves, to split? It is totally contrary to the new world.

”How many single markets with a single currency will we have which will be enormous in 10 or 20 years' time? Look at India, look at China, look at all those emerging countries.

“I am a little bit passionate because I think that there's something which goes against what would be a good strategy for all Europeans.”

Mr. Trichet ran the European Central Bank from 2003 to 2011, overseeing its response to the 2008 crash and the Greek debt crisis. He's now concerned about rising public and private debt levels around the world.

“We see financial leverage continuing at a pace which is not sustainable and we should, at the level of the international community, be much more aware of the fact this global financial leverage is dangerous and could be one of the causes - not the only one - of the next crisis.”

He added: “If we had a new crisis nobody would forgive the international community for not having taken the appropriate steps to avoid it.”

Categories: Economy, Politics, International.

Top Comments

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  • chronic

    Lol.

    It's globalism that died while standing and simply failed to fall over and politely announce its death.

    Sep 22nd, 2018 - 12:51 pm 0
  • Room101

    What he said is neither here nor there: it's like the weather forecast; the nation is not merely divided but sub-divided, and it isn't just Mrs May and other politicians that are in conflict. The public is to blame for most of it; lack of Unity through compromise. Europe has its rules which we signed up for and understood at the time. Does our public thibk that the EU should change its rules for our sake alone.

    Sep 24th, 2018 - 11:36 am 0
  • chronic

    MEGA.

    Sep 24th, 2018 - 12:22 pm 0
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