Masterly trade economics here

Brexit is so obviously not working that it is written all over the figures.

When the history of this era is written the very obvious question is going to be asked, which is why on earth did the UK decide to spite itself by undermining trade with its closest neighbours

This ins response to trade figures showing that exports rose, imports fell over the month.

Further, EU exports fell, non-EU rose by more, EU imports fell, non-EU rose.

That’s failure, is it?

3 thoughts on “Masterly trade economics here”

  1. Bloke in North Dorset

    Brexit not working?

    From the Eurointelligence briefing 8 Dec (no link because of the spam filter)

    Unicorn in the room
    This big report from yesterday gives a good illustration of where innovation is taking place, and where it is not. The answer is mostly in the UK, with Germany hanging on in there. Southern Europe is nowhere. Here is the result for cumulated venture capital invested.

    These charts reflects venture capital investments in high tech industries. So far this year, $100bn has been deployed in Europe this year alone, a 10-fold increase from 2015. The total number of unicorn has grown from 223 to 321, according to a report by Atomico, a venture capital company.

    As the reports noted, Europe now has the strongest startup pipeline ever, now on par with the US for the first time. Europe, including the UK, now accounts for 33% of venture capital invested globally in investment of up to $5m: the early stage start-ups. Since we know already that Europe slept through the first stages of the digital revolution, these latest data for the small scale starts-up are encouraging because these are the likely big businesses of tomorrow.

    The unicorn in the room is that these data lump the UK and the EU together, which hides the underlying picture of the UK as the leader, with a wedge that continues to widen. Germany, Spain, and the Netherlands have two cities each among the top 20, the UK has five. Europe’s top city is London. The capital invested in London is almost three times as much as that of the next placed city, Berlin. Post-Brexit UK had a massively successful year. The gap between the UK and Germany has widened since Brexit.

    We have been arguing that Brexit will ultimately be good for high tech companies, especially high tech service providers, because the UK will be able to give itself a tailor-made regulatory systems for this new industry. This will require deviations from EU regulation in several fields, including data protection. The UK benefits massively from the presence of the City of London, and from the fintech sector as an important source of technical innovation. One area where the EU is doing well is crypto finance, because it is beginning to adopt an intelligent regulatory framework.

    The northern continental Europeans are doing also relatively better in the category of the larger deals. The largest deal this year was a Swedish company, Northvolt, with another Swedish company in third place. There are four German companies among the largest ten VC deals.

    I’d say that was exactly what we expected from Brexit.

    The only way Brexit isn’t working as planned is that the stupid government hasn’t taken every opportunity to ditch EU regulations.

    Here’s another one brought up on Twitter in response to one of Tim’s comments about landfill:

    UK floods are also related to landfills. EU rules (which UK still follows) does not allow dredging material from flow channels, to be dumped on the banks. It needs to be landfilled. Which is expensive, so most dredging is curtailed.

  2. When the history of this era is written the very obvious question is going to be asked

    Yes – the question will be how did we let bedwetters like this dominate our politics for decades?

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