Boris Johnson's decision to suspend parliament for five weeks worries economists who fear the consequences of a Brexit without agreement.
The decision of British Prime Minister Boris Johnson to suspend Parliament for five weeks is the worst fear to the business community: a Brexit without agreement that would cost us dearly.
The aim of Boris Johnson's game is to prevent MPs from passing legislation that would make a Brexit impossible without an agreement. The Prime Minister wants to keep open the possibility of a "no deal", which he uses as a threat playing with the nerves of Europeans. But also playing his economy in Russian roulette. The British pound, a good barometer of confidence in the British economy, fell again yesterday after this new rebound. And companies worry more and more about the risk of "no deal". The British Minister of Brexit was yesterday at the Medef Summer School. It was a little mission impossible: reassure business leaders as the fog thickens dangerously.
French companies also worry?
And rightly so! Before the Medef, the Brexit Minister reminded the French that in the field of wines and spirits alone, we have a trade surplus of 1.3 billion euros with the United Kingdom. And in the dairy industry, the surplus is close to 800 million euros. The message is clear: you have a lot to lose in case of no deal. So agree to renegotiate an agreement that is more favorable to us. London, we know, also threatens not to pay the 50 billion euros it owes to the European budget for years to come in case of exit without agreement. In short, as the deadline of October 31 approaches and for lack of better arguments, the government of Boris Johnson brandishes the economic weapon to renegotiate an agreement with the Europeans. Otherwise, he says in essence, it will cost you a lot and it will penalize your companies.