The Hindu | Brexit could help India-European Union FTA: report The Hindu Prime Minister Narendra Modi and his British counterpart Theresa May share a lighter moment ahead of the India-U.K. 'Tech Summit' in New Delhi in this November 7, 2016 file photo. There is a overwhelming sense among Members of the European ... |
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Brexit could help India-European Union FTA: report - The Hindu
One of Britains most senior former European Commission officials has warned that Brexit negotiations could lead to a complete breakdown of relations between the UK and the European Union.
In an interview with Business Insider, David Wright, the former deputy director general for financial policy at the commission, said that the strident tone ahead of Britains divorce negotiations with the EU, and the red lines likely to dominate once Article 50 is triggered, could make an agreement between both parties impossible.
"Brexit was a dagger in my heart," Mr Wright, who spent more than 30 years working at the EU commission, told Business Insider.
"It's not a bit neutral, or a bit negative, but for the EU and the UK it's potentially extremely disruptive. There's a risk of a complete breakdown, certainly it's looking more probable," he added.
The Government said that it plans to trigger Article 50, the EUs formal exit clause, by the end of next month. The House of Lords began debating the bill giving Prime Minister Theresa May the authority to take that step earlier this week.
"There's so much complexity. To resolve all of it in two years is absolutely impossible. Politics in the EU are not black and white like in the UK," Mr Wright said.
Hedge fund managers and financial services firm in the UK found themselves in an increasingly precarious position following Britains decision to leave the EU. Ms Mays hard Brexit will almost certainly result in the loss of crucial passporting rights, which allow financial firms to sell their services freely across the rest of the EU.
Mr Wright urged the UK government to provide more clarity on the future of financial services.
"The US isn't going to change its financial services laws for the UK, so the danger is [that] the UK is pulled towards US rulemaking approaches and away from EU parallelism," Mr Wright said.
Jeremy Hunt admits Brexit could mean the end of the EHIC card
"Some of the bills on the table could castrate the US regulators, he said.
Ms May has sought to rid the UK of the obligation to offer free movement for EU citizens, by saying that Britain will leave the single market and instead negotiate access for some UK industrial sectors as part of a free trade agreement.
Economists remain gloomy about the prospects for Brexit, despite the robust performance of the British economy since last June.
The Office for Budget Responsibility in November forecast a sharp slowdown in UK growth to 1.4 per cent in 2017.
It will update its forecasts alongside the Budget on 8 March.
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Brexit could lead to 'complete breakdown' between UK and EU, says former European Commission official - The Independent
The surge of Marine Le Pen and the political right in France could signal the end of the European Union and the evolution of the European project.
Major elections will soon be held in the Netherlands, France and Germany what some have argued will be the most divided and diabolical political environment Europe has had in decades.
Since the major wars that divided the continent, the cosmopolitanism that brought divisions in Europe together are now under considerable opposition. Europe continues to face escalating influences from the Russian government, rampant economic inequality, unequal responsibilities of refugee influx and growing threats of terrorism.
Nomi Prins, a former Managing Director on Wall Street and economic historian, says what all this means is that we should expect, More QE manifestations from the European Central Bank, a weaker euro, more bubbles in major European stock markets and greater presence from conservative, protectionist politicians.
The conservative, protectionist politicians that she highlights are making great strides currently in France ahead of April elections. While Brexit might chip away at the European experiment, France offers a petri dish of Euro-divisions between the far left and the surging right.
European Commissioner for Economic and Financial Affairs Pierre Moscovici told CNBC, Im confident. I know my citizens and my compatriots well and know they are not going to elect a candidate who is proposing France exiting (Europe). That would be the end of the European project.
If that sounds familiar, it could ring true to the type of narrative that was being heard in the U.S on various talk shows during the weeks and months leading up to Trumps victory.
During the CNBC interview with Moscovic, who is considered the EUs tax chief, he held reluctance and outright opposition to the idea that France could elect Le Pen. However, he did offer up what that election would cast for the future of the European Union.
If Marine Le Pen comes in office, if she asks for a referendum on Frexit, what would Europe be about? Europe was founded precisely in order that France and Germany and others work together in a common project.
He went on to say, But this wont happen its just to say how crazy it will be if she is elected that is why precisely it cannot happen, it wont happen, it must not happen.
But the reality is, these are uncertain times.
French elections will be held April 23. The top two candidates will then will go through to a May 7 run-off French election.
In a recent French poll, the first-round in the election would have Le Pen, the anti-euro candidate, ahead with 27% of the vote, where she has risen in poling lately. The next two candidates follow with 20% each and remain stagnant in polling.
The poll also shows that in the second round Le Pen would currently lose 58% to 42%. However, there is still considerable time and opportunity between now and then.
In February 2017, Europeans celebrated the 25th anniversary of the Maastricht Treaty being signed. Prior to that 12 nation major Treaty signing, Europe was in turmoil.
The wounds of the Cold War were still fresh. The Berlin Wall had just fallen, Germany was still navigating reunification. Eastern European states were questionably shifting toward democratic governments.
The reality is that the left wing French opposition candidates lead over Le Pen has been cut in half over the past two weeks. Security fears and surging euro-skepticism, core issues attributed to the far-right party, are pushing the polls in France to much tighter margins.
The unification of Europe, through the Maastricht Treaty, brought those economic and political divisions away from further conflict.
If Le Pen, the National Front leader of the French right party, was to claim victory it could bring mass political and economic instability. Speculation is that the EU as it is known today would become extinct.
Those investors involved in European bonds have already shifted toward seeing safe haven outlets as political uncertainty mounts. Following Le Pens party calling for an overall exit from the euro zone, trading of French bonds spiked and risk spreads have opened up considerable margins with German bunds.
One major European investor penned that, in the face of a French exit from the EU:
A financial system that already suffers from weak net income margins and more than 160 billion euros in non-performing loans, would collapse as these bad loans escalate and the losses in the banks bond portfolios eat away their core capital.
This would inevitably lead to Greek-style capital controls and bank runs as the entities would lose liquidity support from the ECB.
Under these outcomes, France leaving the euro currency could bring about the biggest sovereign securities default ever seen.
This economic and banking turmoil could be the biggest negative impact and cause a global spillover. If France was to elect Le Pen and push for an exit of the EU, there would be no clean separation from the union and the U.K is attempting.
Turning to Jim Rickards, author of the Road to Ruin, who continues to update his macroeconomic analysis on the situation noted that Le Pen wont win, but shell drive markets and media mad in the meantime.
Rickards goes on, I dont think Marine Le Pen will win in France. Because weve had so many shocks, people are getting set up for more shocks such as a potential victory of Marine Le Pen or a loss by Angela Merkel.
Applying his forecasts and analysis Rickards remarked he is taking the other side of the equation. The shock will be that there wont be a shock, namely that mainstream parties will win in France and Germany. He warned cautiouslythat, there are always other shocks on the horizon to pay attention to.
Rickards could not be more spot on in the media madness. But will he be right again after correctly seeing through polls and forecasting the Brexit vote and the Trump victory?
While the Trump election and French politics are very different, the similarity in media messaging and skeptical polling cannot be ignored.
Could France surprise the world? Could this be the end to the European Union as we know it?
Stay turned,
Craig Wilson, @craig_wilson7 for the Daily Reckoning
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How France Could End the European Union - Daily Reckoning
Select a City for current time Aarhus, Denmark Alicante, Spain Amsterdam, Netherlands Antwerp, Belgium Athens, Greece Barcelona, Spain Bari, Italy Berlin, Germany Bielefeld, Germany Bilbao, Spain Birmingham, United Kingdom Bochum, Germany Bologna, Italy Bonn, Germany Bradford, United Kingdom Bratislava, Slovakia Bremen, Germany Bristol, United Kingdom Brno, Czech Republic Brussels, Belgium Bucharest, Romania Budapest, Hungary Bydgoszcz, Poland Cardiff, United Kingdom Cluj-Napoca, Romania Cologne, Germany Constana, Romania Copenhagen, Denmark Crdoba, Spain Coventry, United Kingdom Dortmund, Germany Dresden, Germany Dublin, Ireland Dsseldorf, Germany Duisburg, Germany Edinburgh, United Kingdom Essen, Germany Florence, Italy Frankfurt, Germany Gdask, Poland Genoa, Italy Glasgow, United Kingdom Gothenburg, Sweden The Hague, Netherlands Hamburg, Germany Hannover, Germany Helsinki, Finland Iai, Romania Katowice, Poland Kaunas, Lithuania Krakw, Poland d, Poland London, United Kingdom Leeds, United Kingdom Leipzig, Germany Lisbon, Portugal Liverpool, United Kingdom Lublin, Poland Lyon, France Mlaga, Spain Milan, Italy Madrid, Spain Manchester, United Kingdom Marseille, France Munich, Germany Naples, Italy Paris, France Prague, Czech Republic Riga, Latvia Pozna, Poland Palermo, Italy Murcia, Spain Nice, France Nuremberg, Germany Ostrava, Czech Republic Las Palmas, Spain Plovdiv, Bulgaria Palma, Spain Rome, Italy Rotterdam, Netherlands Sevilla, Spain Sheffield, United Kingdom Sofia, Bulgaria Stuttgart, Germany Stockholm, Sweden Szczecin, Poland Tallinn, Estonia Thessaloniki, Greece Timioara, Romania Toulouse, France Turin, Italy Utrecht, Netherlands Valencia, Spain Valladolid, Spain Varna, Bulgaria Vienna, Austria Vilnius, Lithuania Wakefield, United Kingdom Wrocaw, Poland Wuppertal, Germany Warsaw, Poland Zaragoza, Spain
NB For completeness we have included a number of small countries which are geographically within the EU but not formally a part of it. E.G. Andorra, Holy See / Vatican City, Monaco, San Marino. These countries tend to adopt EU practices for time & currency, etc.
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Time in Europe / European Union (EU) | Greenwich Mean Time
NEW DELHI: The European Union said it is ready to accommodate more Indian IT professionals and denounced any form of protectionism in global trade, amid anxiety in India over the Trump administration's possible clampdown on H1B visa.
Pushing for deeper trade ties with India, a delegation of European Parliament's Committee on Foreign Affairs+ also expressed "regret" over failure by both sides to resume the stalled dialogue to firm the long-pending EU-India trade and investment pact.
Criticising the new US government's protectionist rhetoric+ which triggered fears in Europe as well, head of the delegation David McAllister said Europe is "open" for allowing more Indian professionals who are high on demand.
"Europe is open for people with high demand. Indian people are highly skilled. Our IT sector would not have been successful if we did not have skilled professionals from India," he said.
Soon after taking over last month, Trump had decided to overhaul the work visa programmes like the H-1B and L1, a move that will adversely hit the lifeline of Indian tech firms and professionals+ in the US.
Pressing for early resumption of negotiations+ for the EU -India Broad-based Trade and Investment Agreement (BTIA), McAllister said the delegation urged the Indian leaders to resume the talks as the pact will significantly boost two-way trade.
"We deeply regret that we are not being able to move ahead. We will use the visit to call for resumption of talks for the agreement," he told reporters.
The EU delegation, the second one here, will hold talks with a number of Union Ministers, National Security Adviser Ajit Doval, the Vice Chairman of NITI Ayog Arvind Panagariya and Lok Sabha Speaker Sumitra Mahajan among others.
An European Parliament Delegation for relations with India is also in the country and it had strongly sought resumption of talks for the trade pact during its meetings with Finance Minister Arun Jaitley and Commerce Minister Nirmala Sitharaman.
The BTIA talks have been stalled since May 2013, when both sides failed to bridge substantial gaps on crucial issues, including data security status for IT sector.
Launched in June 2007, negotiations for the proposed agreement have witnessed many hurdles as both the sides have major differences on crucial issues.
Delegation member Urmas Paet said the EU would like to have the trade pact with India on the lines of the recently concluded EU-Canada trade deal, which features a new mechanism on investment protection and dispute settlement.
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European Union says it is open to accommodate more Indian skilled professionals - Times of India