Economics of Brexit

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, […]

Post-Brexit Britain should cotton on to an opportunity to transform global trade

Brexit should be viewed as an important opportunity for fresh thinking about trade and development policy, argue Richard Baldwin, Paul Collier and Richard Venables. EU economic and trade policies were far from perfect, and Britain has the chance to lead the way in devising a fairer set of policies that help development in Africa and the Caribbean, while helping […]

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    Brexit, competition and markets: there’s a need to spread the benefits of growth

Brexit, competition and markets: there’s a need to spread the benefits of growth

London and the South-East plus metropolitan and major university towns are markedly more pro-market and pro-competition than much of the rest of the UK. This is reflected in the geographical pattern of Brexit referendum results. In this post, Jon Stern examines the future of competition policies, as well as the perceptions of fairness and legitimacy of pro-market competition and industrial policies […]