Quote:
Originally Posted by Damien
We have a trade deficit now. However as much as the EU is dropping that is not a constant. Just because it's dropping now doesn't mean it will continue to do so. When the economies in Europe recover then they'll become a massive trading block for us again. Not to mention they're in the middle of getting America to sign a free trade deal with the EU.
It's not just a case of who would want us to be their customers, it's also a case of who would want the jobs that we currently have. There will be companies in France, Germany, Spain who wouldn't mind seeing our exports hit with a tariff. We still make quite a lot of car parts for example and it isn't beyond the realms of possibility that another country would want those contracts and have a equally as much as an interest in kicking us out as the car manufacturers have in keeping us in. Especially if the prospect of America opens up to them, then they won't really lose as much in terms of possible customers.
It's not just buying/selling. It's the ease in which these European companies can diversify their operations across the continent in terms of resources and staff.
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These arguments are a busted flush, Damien. All of them were made in one form or another when the Euro was proposed and Britain indicated it would not join. Being outside the currency used by all the powerhouse economies of Europe - back in the days when they were powerhouses - was insane, we were warned, no sensible corporation would saddle itself with massive exchange risk by basing operations here when it could just as easily set up in Spain. Just try telling any of that to the people of Sunderland.
The EU is crippling itself with massive labour market regulation. It would not be at all difficult for the UK to compensate for any additional costs (whose inevitability I by no means accept, by the way) with flexibility.