The British Parliament is thinking about reopening the negotiation with the European Union after rejecting May’s proposed Brexit plan, which has been agreed with by the European Union. However, Jean-Claude Juncker, the president of the European Comission, told the European Parliament that, “we have to prepare for the worst”. The problem at the moment is that it is unclear what the UK does not want but it is unclear what the UK does want. Moreover, the European Union seems reluctant to renegotiate the Withdrawal Agreement. The uncertainty is increasing as long as the UK cannot unite under one single guidance for Brexit that prepares the UK for all possible outcomes with the negotiation with the European Union.
Barclays has moves over £160 billion assets to Dublin to counter the risk coming from the Brexit and the Bank of England showed that the consumer borrowing growth fell in December due to the household confidence. The car builder, Jaguar Land Rover, is planning to cut up to 5000 jobs in the UK because of the risk of the Brexit. These are not good signs. The problem in the UK I think is that there is no single guidance that can dominate any other proposal. I always think that maybe the UK has a common agreement that the UK needs to leave the European Union, but there is not any agreement about how the UK leaves the EU and what is the new relationship between the UK and the EU after Britain leaves the EU. People have very diversive thoughts about how the UK should leave the EU and how the UK should see the EU. Even one thing that many people are crying for, the single market, is not wanted by all the UK population, some people believe that it would hurt them when facing competitions from the continent and they want to live in a market without the European market.
Overall, when the time is passing and the problem surrounding the Brexit is not resolved, the uncertainty is rising and causing more and more downside impacts on the UK economy.
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