100 days to Brexit, EU tells London: financiers on their own without a deal
With just 100 days until Brexit, the United Kingdom is on the brink of leaving the European Union without a divorce deal, the nightmare scenario for many businesses which are now planning for an economic shock.
EU’s executive cautioned that most banking, insurance and other financial firms in Britain would be cut off from the European Union if there is no divorce deal.
Prime Minister Theresa May’s failure to find a deal the British parliament will approve means the world’s fifth largest economy now faces three main choices: agreeing a last-minute deal, halting Brexit or leaving the EU without a deal.
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No deal means there would be no transition so the exit, set in law as 2300 GMT on March 29, would be abrupt. Bank of England Governor Mark Carney said leaving the EU with no transition could be akin to the 1970s oil shock.
With fears growing that the political brinkmanship in London could lead, as May has warned, to Britain leaving without a deal, businesses and the EU’s executive ramped up planning for such an eventuality.
“Businesses of all sizes are reaching the point of no return, with many now putting in place contingency plans that are a significant drain of time and money,” the heads of Britain’s five biggest business lobby groups said.
European Commission President Jean-Claude Juncker said a disorderly Brexit would be an “absolute catastrophe”.