30 March 2016

Brexit: Mixed Finance Sector Opinion


Should we stay, or should we go? This is the vital question on everyone’s lips. But responses to the Brexit question are mixed. There are convincing arguments both for staying in and coming out of the European Union. And even the financial experts can’t agree on the best course of action.


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Different Opinions

We recently heard the Governor of the Bank of England, Mark Carney, being chastised for suggesting that, in his professional opinion, Britain’s exit from the EU would be unwise from an economic point of view. But according to the Financial Times Adviser, Brexit, as it is being referred to in the press, will be neither good nor bad for Britain. This is not particularly useful for voters looking to the experts for help in making up their minds on the best way to vote in June’s referendum.

On the one hand, people like Peter Hargreaves, a co-founder of one of the UK’s biggest financial services companies and an ardent proponent of Brexit, claim that independence from Europe would be a massive boost to the UK economy. He pointed to Singapore’s success since it moved away from Malaysian control, which Britain could emulate.

Do We Really Want to Walk Alone?

However, others point out that the British economy doesn’t operate in isolation and recommend that wider socio-political considerations should be taken into account. Scotland has already said it doesn’t want to come out of the EU. If the rest of the UK opts to exit, will that trigger another independence referendum in Scotland? How stable can the UK be if it is disentangling itself from Europe at the same time as it is fragmenting internally?

And what will be the impact on our export markets, given how much trade we do with other EU countries?

Investment companies such as Robert Stones Target Markets are worried. Robert Stones Target Markets, who operate across Europe, are particularly concerned about their future and how it will be affected if Britain comes out of the EU. And they are not alone.

There is also the argument that we are stronger together against terrorism.

It’s not going to be an easy decision for any of us, made all the more difficult by the lack of agreement among those we had hoped were in the know.