comsc US Politics | AMERICAblog News: Was it counter-productive for the UK to reject Europe?
Join Email List | About us | AMERICAblog Gay
Elections | Economic Crisis | Jobs | TSA | Limbaugh | Fun Stuff

Was it counter-productive for the UK to reject Europe?

| Reddit | Tumblr | Digg | FARK

The UK had done alright with their own currency until their banking industry tumbled, which then put the pound on more equal terms with the euro. The UK economy has had it's own share of problems though they've still had to be involved in some of the bailouts in the EU. They didn't get involved because they're nice, but because they still to had a lot to lose, like other governments in the region who are deeply tied together. British bank exposure in Europe is significant.

With the banking industry in decline, the more critical issue for the UK is boosting trade with Europe. Europe currently accounts for 47% of British exports, making it it's largest trading partner by far. While it sounds nice in theory to be removed from the tangled mess in the eurozone, is it actually possible and does it make sense? Also, it's not practical to restructure your economic focus overnight during a recession. That is just one more problem to go along with the many other problems.

The all or nothing move by Cameron seems un-British, undiplomatic and ultimately counter-productive. What country really wants to be removed unnecessarily from discussions about trade with your largest trading partner, as has been the case for years? The complaints by the Liberal Democrats are not likely to come to anything, as they sold their souls long ago, so Cameron is not going to fall immediately. British exporters though should be concerned as they're about to be left in the dark. They have to know that there will be a political payback at some time, probably when it's the most damaging to the UK.

This wasn't an "either/or" situation, but Cameron made it one. Now he's going to have to live with it, as will the rest of the country despite it not having to be that way. Knee-jerk reactions were the hallmark of the Bush years and look how well that worked out for the US over time.

blog comments powered by Disqus