Neither Joyce McMillan, nor Kenny Farquharson (Perspective, 1 May), get to grips with the “elephant in the room”. Both, in different ways, analyse the cut and thrust of domestic politics, yet fail to grasp the importance of financial economics.
Given the political upheaval some are anticipating in UK governance it isn’t surprising that some investors are reportedly switching their funds to Europe.
Of course, UK politicians and leaders behave as if it is business as usual and they are in control of the domestic economy.
They assume they will have the power to restore growth, reduce unemployment and return us to prosperity. What can’t be known is how global financial markets will react if there is a breakdown in political stability. This is important, since whatever happens, the UK still has a considerable deficit and a huge debt to service.
Arguably, all politicians, especially leaders, should seek political stability so increasing uncertainty doesn’t “spook” financial markets.
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