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Durudarshan - Investment Analysis
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It may be best to have a damage limitation exercise from Brexit
Posted on June 27, 2016 at 10:36 AM |
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Now that Brexit has happened, perhaps Britons should all celebrate, like Nigel Farage, and say it is no bad thing. Indeed, this Referendum result has hardly been a straight Brexit : there are large pockets of the country that have overwhelmingly voted to stay In the E.U., prime examples being London and the whole of Scotland and Northern Ireland, all integral parts of the United Kingdom. The parts that have voted themselves out of the E.U. are England and Wales. Parts of England and Wales who have predominantly cast the Leave vote are mostly 1) Areas of high deprivation and underdevelopment, areas which seem to have been neglected by various governments; and 2) Areas which are on the whole Labour dominated, politically. The issues that mostly affected people in these areas were, mostly, Immigration or the fear of it; joblessness, lack of opportunities, lack of funding for socially beneficial schemes (such as community centres, pedestrianized centres in town centres, lack of funding for education and higher education, lack of childcare facilities, closure of hospital wings, etc, a picture of neglect and deprivation. Of course, when people say the touring red bus of BoJo, saying £350 million a week for NHS, blah, this was a huge selling point for the Leave campaign engineered by Boris Johnson, the former London Mayor and now the clear favourite to succeed David Cameron and become Prime Minister. He has held this hugely responsible position, dealing with all matters of government administration and controls, and certainly he has welcomed and engaged with most of the world leaders, so it cannot truthfully be said that he has no experience at the highest level; that clearly he does, together with a scintillating personality and a humorous manner that makes him a fun personality, easy to understand, and likeable as well. Whoever becomes the next British Prime Minister will have their tasks cut out for them : He (or She) will have to take the brief of the pull-out to the European Union leaders, and present to them the full reasoning and also suggestions solutions how it would be best implemented, together with a time-frame. The man who joyfully had governance of London for eight years could and perhaps should be that man. The Brexit vote has hinged largely on two issues : a) Britain is a small island, getting crowded, and does not want any more immigrants - being part of the E.U. would force them to take more immigrants, especially from the E.U. nations, under the free movement arrangements. This is an element the P.M. will have to restrict, to the satisfactory agreement of the British people. b) The money that is paid to the E.U. as a club fee - £13.5 billion last year, only £4billion of which comes back to the U.K. The people would rather not pay this fee, and entrust the government to spend this entire sum internally in the U.K., perhaps largely to remedy the situation in deprived and neglected parts of England and Wales, together with funds available to London, Scotland and Northern Ireland as previously but with some enhancements, the proportion to be worked out to some formula. As regards the two-way trade between U.K. and the various E.U. nations, that can obviously continue as previously, if it is agreeable to both sides. After all, no one wants to lose trade, and certainly the Europhile London and Scottish and Northern Ireland banks will continue to have their trade relations as before with the E.U. nations; naturally enough, England and Wales will have their trade transacted through these regions. So all may not be lost. The European Union now may have the straightforward task of agreeing to the above suggestions, so that their British friends can have the feel-good factor. Indeed, I would call upon all the E.U. nations in congratulating the British people on delivering this historic vote, and reassure them that they will not be obliged to take any more immigrants than they need (for whom work and housing, schools, medical facilities could be available). £8.5 billion will appear a minor amount in the context of the unity and longevity of the Euorpean Union, and the continued economic Recovery and Prosperity they may soon experience with the current E.C.B. Stimulus of 85 Billion Euros per month, no less. If in a spirit of friendliness and generosity our European Union friends and allies can allow these two requests, perhaps we can all cast the darkness away and celebrate. As for the NATO alliance, that stays same as before, strong as ever, according to Mr. John Kerry, the U.S. Defense Secretary. A practical, sensible, friendly solution as amongst friendly nations, in a spirit of generosity and understanding, may save the day. And after all, what is the European Union all about? Is it not about the preservation of our cultural values and the happiness of all people within the borders? As the United Kingdom uses its own sovereign currency, the Pound Sterling, the Brexit vote should have no bearing on the Euro and its sound establishment as a Reserve Currency. That I do believe, and I express my good wishes for the continued strength and longevity of the European Union. Kind regards, Durudarshan H. Dadlani (c) Copyright. London 27thJune2016, 3:34pm GMT. |
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