3 ms·
"There is no technical reason why euro clearing must happen physically inside the eurozone." Yes, there is. Overview concerns and the ability to intervene in t
by jayalpha 8y ago
"There is no technical reason why euro clearing must happen physically inside the eurozone."
Yes, there is. Overview concerns and the ability to intervene in times of a crisis. Or how "The Economist" said, in regards to Brexit and Euro Clearing. "Sometimes it is about getting back control" :-)
Another think that makes me skeptical about Brexit: The UK had comparably low debt compared with other countries. During the last financial crisis, the debt exploded, also due to the finance heavy economy. Another crisis may be overdue. If there is a no deal situation and the next financial crisis comes, good luck with that.
The UK was the "sick man of Europe". Then three things happened.
1. Reforms by Thatcher
2. Oil found in the Northern Sea
3. UK joined the EU (or the precursor of the EU)
The oil is running out. And now they are leaving one the the biggest markets. So two out of thee advantages may be gone. Nobody knows the future but call me skeptical about the chances of success.
I could give you a similar list of free trade partners.