Typically excellent piece from @dsquareddigest The exponential insight is especially neat. Think of it a little like fishing...today you can’t export oysters to the EU (because you simply aren’t allowed to), tomorrow you don’t have a fish exporting business (to the EU).

The extremely small minority of people who known anything about this who think that Brexit will be good for the City make a number of arguments which I shall address in turn...
1. They need us more than we need them. This is a variant of the German carmakers argument. And we know how that went...Business will follow the profit opportunity and if that has moved then so will the business...
And what do we mean by us / we. We’re not talking about massed ranks of Euro investing / trading etc blue blooded British institutions.
Au contraire. We’re talking about the London based subs of US, Asian and indeed European capital markets players...As soon as they think the profit opportunity has moved then so will they...it’s a market innit...
2. The Europeans will never act in a way that might be economically sub optimal.

I refer you to Brexit. But kidding aside, the balance between economic optimality and, to coin a phrase, taking back control is not at all straightforward.
I bet a bazillion notional shillings that many people might consider the benefits of taking back control over a vital national function far far far outweigh an additional economic cost.

I refer you to the financial crisis.
3. But but THE EU IS GOING TO FALL APART IT’S ONLY A MATTER OF TIME

Good luck with that.
4. But the U.K. is a speedy fast turning speedboat and the EU is a ponderous sea tanker of weighty regulations.

🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
The U.K. regulators are extremely tough. Arguably tougher than the EU. I refer you to ring fencing. Or the U.K. conduct regime (very scary). The idea that any of this is going to be materially relaxed is for the birds.
5. Freed from the dead hand of Europe, we shall exploit all sorts of wonderful new opportunities.

Well. Maybe. London has a v substantial scale / incumbency advantage. But ofc (as Dan points out) that does not mean that those new opportunities will necessarily arise in London.
The bottom line is that London ain’t going anywhere any time soon as a leading financial services capital.

BUT. There is no way round the fact that Brexit has impaired London’s competitive position. This is an apple falling, water flowing downhill point.

It’s not a debate.
Over time, the damage will range from significant to really quite bad. The possibility of the latter depends on the EU getting its act together re CMU...if it does (debatable) then watch out...

/ends

More from Yet Another Columnist

A quote from this excellent piece, neatly summarising a core impact of Brexit.

The Commission’s view, according to several sources, is that Brexit means existing distribution networks and supply chains are now defunct and will have to be replaced by other systems.


Of course, this was never written on the side of a bus. And never acknowledged by government. Everything was meant to be broadly fine apart from the inevitable teething problems.

It was, however, visible from space to balanced observers. You did not have to be a trade specialist to understand that replacing the Single Market with a third country trade arrangement meant the end of many if not all of the complex arrangements optimised for the former.

In the absence of substantive mitigations, the Brexit winners are those who subscribe to some woolly notion of ‘sovereignty’ and those who did not like freedom of movement. The losers are everyone else.

But, of course, that’s not good enough. For understandable reasons Brexit was sold as a benefit not a cost. The trading benefits of freedom would far outweigh the costs. Divergence would benefit all.

More from Government

The Government is making the same mistakes as it did in the first wave. Except with knowledge.

A thread.


The Government's strategy at the beginning of the pandemic was to 'cocoon' the vulnerable (e.g. those in care homes). This was a 'herd immunity' strategy. This interview is from


This strategy failed. It is impossible to 'cocoon' the vulnerable, as Covid is passed from younger people to older, more vulnerable people.

We can see this playing out through heatmaps. e.g. these heatmaps from the second


The Government then decided to change its strategy to 'preventing a second wave that overwhelms the NHS'. This was announced on 8 June in Parliament.

This is not the same as 'preventing a second wave'.

https://t.co/DPWiJbCKRm


The Academy of Medical Scientists published a report on 14 July 'Preparing for a Challenging Winter' commissioned by the Chief Scientific Adviser that set out what needed to be done in order to prevent a catastrophe over the winter
I am going to take the context for this thread from this piece by my good brother @mabziz in 2018-3 years ago. One thing I am so perturbed about is the response of our Attorney General's office to issues of state security. I have no personal grouse against @MalamiSan, but


2. I do have a professional grouse against him. I feel he is not alive to his duties. I feel that he is also not empowering his Director of Public Prosecutions or his Solicitor General. There is clearly a lot that befuddles me and this is because I am a seasoned lawyer and can't/

3. understand why law is not being used as the instrument it was designed for-to enforce law and order. Let us take the case of Nnamdi Kanu-this man was arraigned in Nigeria on a charge of treason/treasonable felony-he was on bail & he jumped bail. Why has he not been extradited?

4. Is it that Kanu is somehow bigger than Nigeria? What has happened to his surety who failed to produce him? Who is prosecuting him? Our Federal Ministry of Justice? Should Malami not explain to Nigeria why Nnamdi Kanu is still taunting Nigeria daily & still actively destroying/

5. our unity everyday. He is putting the lives of many people at risk and stoking ethnic dissent easily. The Fulani herdsmen dilemma, the burning of Lagos State and his coordination of same on phone-in radio channels, his videos are all stoking a Yoruba/Igbo carnage. Same with/

You May Also Like