The former head of the European Central Bank, Jean-Claude Trichet, recently shared his belief that Brexit will have a worse economic impact on the UK than the European Union. He feels that this decision was “totally contrary to the new world” of large emerging economies. Economies with single currencies and single markets.
When asked his thoughts on how Brexit would affect the other EU countries, he stated that “It’s very much a quesiton of proportion.”
“If I take the EU as a whole and compare the GDP of the EU to the GDP of the UK, you see there’s a small portion which is the UK,” he told the Wake up to Money programme.
The EU’s economy is worth about £13tn, while the UK’s worth is £2tn. “It’s normal that the European 27 are less impacted themselves than the UK by this event which has been entirely decided upon by the UK – when all the 27 wanted the UK to stay”, Mr. Trichet went on to explain.
What is the biggest concern moving forward? Mr. Trichet suggests that Brexit could be detrimental to the EU during a time when economic growth is taking place elsewhere. He feels that this should be avoided at all costs: “for the sake of the UK in the very long run, and for the sake of our continent.”
At the moment, India, China, Brazil, Mexico and Indonesia’s economies are growing very fast. Experts are really concerned about the timing. Just as emerging economies are growing, the UK is separating itself. There is also the issue of rising debt.
Mr. Trichet has years of experience, and he also oversaw the European Central Bank during its response to the 2008 crash and the Greek debt crisis. His worries now are over the rising public and private debt levels around the globe.
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Author Bio:Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry and cheapest merchant account UK has helped thousands of business owners save money and time.