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Montevideo, March 6th 2021 - 02:40 UTC

 

 

La Nacion editorial “Brexit and Malvinas”, a weaker UK and a blow to Falklands' finances

Thursday, January 21st 2021 - 09:30 UTC
Full article 4 comments
With the UK OTs  out of the Brexit accord means things have substantially changed for the Falklands' people With the UK OTs out of the Brexit accord means things have substantially changed for the Falklands' people

Argentina must closely monitor the evolution of the Falkland Islands' economy as a result of the UK's exit from the European Union since this strategic error means a new chapter can be opened in the long sovereignty conflict between Argentina and UK.

“We must patiently try to recover the support for out claim from the European countries”, which means a medium and long term evolving strategy, equally sustained as coherent, underlines the Buenos Aires daily La Nacion editorial, “Brexit and Malvinas”.

The editorial points out that UK Overseas Territories were specifically left out of the Brexit accord, which means things have substantially changed for the Falklands' people. It means an end to the generous subsidies, direct and indirect, from the EU enjoyed by the Islands besides the end of zero tariffs and quotas to that market which absorbs 90% of exports. Fishing licenses can be expected to be less attractive.

The political side of this is the end of EU endorsement for UK regarding the sovereignty dispute, and it is time for Argentina to try patiently to recover the support for its claims from European countries. This needs a strategic mid and long term evolution, both sustained and coherent.

Further on the editorial addressed the UK economy's long recession and with public debt above 100%, for the first time since 1963. It mentions the 11,3% GDP contraction last year and a budget deficit to the tune of 14% of GDP, the highest since World War II, plus a trade deficit close to 6% of GDP. To this must be added the inevitable impact of the Covid 19 pandemic insists La Nacion editorial.

The Bank of England forecasts that in the coming 15 years, UK will suffer an accumulated loss of between 4% and 10% of its GDP, which has already started as a consequence of Brexit and abandoning the EU.

Thus, it seems essential for Argentina to follow closely the course of the Falklands economy as a consequence of the adverse blow to its finances, because of Brexit, “a strategic error, already accomplished” is bound to have different collateral impacts.

Finally it concludes, a new chapter may open for the long sovereignty conflict Argentina has with the UK over the Falklands.

Top Comments

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  • Swede

    Why does the Argentine government think that Brexit will help them take over the Falklands?

    Yes, the UK has left the EU. But Argentina has never been a member and will never be, so there is reason for the EU to shift side and promote the “Malvinas claim”. Why should they do so? Just as a revenge, to “punish” the UK for “abandoning” the EU?

    Which European countries could be in favor of Argentina in this case?

    SPAIN perhaps. It is the old mother country of Argentina and they share language and in some sense culture. And they both put claims on British territory. Could be deal: “We support your Gibraltar claim if you support our Malvinas claim”.

    ITALY. A majority of the Argentine people are of Italian origin. Perhaps that creates a special affinity. I do not know.

    But most other European countries. They are not interested in this question at all. Most people think that Argentina is “obsessed” with this “non-question” (if they have heard of it at all).

    And many of the EU-members are also members of the NATO. I think they will show more solidarity with an old military ally like the UK, than with a doubtful democracy with megalomania, not content with being the 8th largest country in the world, like Argentina.

    Jan 21st, 2021 - 05:14 pm +3
  • Roger Lorton

    Argentines are world-class straw-clutchers.

    Jan 22nd, 2021 - 01:17 am +2
  • FitzRoy

    These Argentine press releases are hysterical. The reason the BOTs were left out of the Brexit discussions had nothing to with Argentina or anything else, other than it would shine a light on The Netherlands, Spanish, French colonies and territories. Something the EU really didn't want to do.
    These articles also misapprehend just where the fish and squid go from Falklands waters. South East Asia and North America buy most of our produce with only a very small percentage actually going into Europe. They never seem to mention the Spanish-flagged ships either....

    Jan 22nd, 2021 - 09:45 am +2
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