Economics of Brexit

Britain’s farmers get £3bn a year from the inefficient CAP. That has to change

The Common Agricultural Policy is inefficient, and much of British food production is uncompetitive in the absence of tariffs. And free trade deals of the kind the UK plans to pursue outside the Single Market will hurt farmers even more than the loss of subsidies. Dieter Helm says Brexit is a chance to stop subsidising large landowners and spend […]

The interregnum: 11 years without free movement from 1962 to 1973

There was a short period of just 11 years between 1962 and 1973 when free movement of people did not apply in the UK. Other than during that time, businesses and public services have had easy access to workers from other countries, writes Colin Yeo. Following Brexit, the UK will be embarking on a similar period. If the full […]

The City plans for a tough Brexit divorce

The upcoming exit of the United Kingdom from the European Union risks further weakening an economy already hampered by low interest rates and raises questions concerning the ongoing profitability of the British financial sector. Nader Haddad writes that Brexit will not only impact goods trading inside the EU, but it will have a direct impact on financial markets, especially the City of […]

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    Global trade can’t replace the value of the EU Single Market for the UK

Global trade can’t replace the value of the EU Single Market for the UK

New trade deals for the UK will be an important part of the Brexit negotiations, not only with the EU but also with the rest of the world. But Steven Brakman, Harry Garretsen and Tristan Kohl argue that the UK has no trade-enhancing alternative to an agreement with the EU that essentially mimics its current situation as an EU […]

The Conservatives’ 100k net migration target is an act of self-harm

The Conservative manifesto reaffirmed a commitment to cut net migration to less than 100,000 a year. Employers will have to pay a £2,000 levy to hire a skilled worker from abroad, and an end to freedom of movement from the EU will ultimately make it difficult to recruit skilled and unskilled labour from any other country. The target is […]

How to settle the size of the UK’s Brexit bill? Go to arbitration

The UK-EU financial settlement risks becoming a toxic stumbling block in Brexit negotiations. But there are actually much more important issues to discuss. To diffuse the issue, argues André Sapir, both sides should agree to independent international arbitration.
The Brexit negotiations have not begun well. Instead of focusing on what really matters, the two sides (the European institutions and the UK […]

Brexit will inevitably hurt UK exports, slowly but surely

Leaving the EU will matter a great deal for trade, writes Pierre-Louis Vézina. He argues that in time, Brexit will surely hurt UK exports.

Most experts are convinced Brexit will hurt UK exports. That’s because we’ve learned from past episodes that removing trade barriers does actually boost trade. On average, bilateral trade is around 40% larger after trade agreements are signed. But […]

Video: Brexit in the City

Brexit is likely to diminish the status of the City as the euro area’s financial centre. Even so, neither the UK nor the euro area will be shielded from a crisis that will strike the other. Hence, it is doubtful that the Brexit in the City can be clean and hard. This LSE Lecture on Brexit in the City is given by Waltraud Schelkle […]

Why the European Court of Justice isn’t going away

One of the most contentious issues in Britain’s exit from the EU is the role of the European Court of Justice (ECJ) during and after Brexit. This is because Brexit is ultimately a question of sovereign authority. Who decides the rules of the game when things go awry: a UK judge, or their EU counterpart? Davor Jancic examines the […]

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    Brexit should make it easier to address the Eurozone’s challenges

Brexit should make it easier to address the Eurozone’s challenges

Annette Bongardt and Francisco Torres recall that the Eurozone risked seeing its legitimate efforts to strengthen the EMU vetoed by the UK, a country with a derogation from the monetary union. They argue that had ‘Remain’ won, the prospects for completing and sustaining the EMU would have worsened and dissatisfaction with the EU would have increased. In their view, […]