Households will favor Brexit, says new study


FDI, Foreign direct investment, referendum, Lloyd's, EY, UK, Brexit22 June, AtoZForex.com Lagos – If the UK is to remain within the EU, Prime Minister David Cameron will have to do his best to negotiate for a better deal, else, leave the 28-nation bloc, according to a new study. According to a study, entitled “Change, or Go,” by a group of prominent British business leaders and economists including fund manager Helena Morrissey. The major opinion consistent in this group is that Cameron has to secure some “major reforms” to “introduce mechanisms to reduce the burden of regulation on businesses.”

“Far from offering every consumer and business the benefits of a wider domestic market, after 40 years of membership, less than 5 per cent of UK companies directly export to the EU yet all are forced to bear the burden of its regulations,” says the study, according to the Telegraph newspaper, which published extracts from the report.

“The EU is not a free trade area but a customs union, and one which has spectacularly failed to deliver trade deals with rising economic giants like China. Far more effective tools are needed to ensure that the UK could block measures that it fundamentally disagrees with, and these tools must be secured in any renegotiation.”

They also opine that households across the UK will be in favor of a Brexit, except greater “control over social and employment laws” are agreed upon.

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The Prime minister is scheduled for a meeting with officials from Brussels this week as he attends a European summit to set out his renegotiation strategy. Hopefully, there will be a better turnout from this meeting, compared to his initial failed attempt at impressing Hollande and Merkel for better terms and conditions for Britain’s membership in the European Union a few weeks back.

Standards and poor has also downgraded its outlook of Britain’s sovereign rating to “negative”. The agency has joined cries that UK’s exit from the EU will hurt business for the country. Also, according to a leading recruitment firm, leaving the EU would create a “vast amount of uncertainty and instability” which will affect investment and job creation in the economy.

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Based on reports from a recent survey by the company of 2,100 employers, it was discovered that the country already faces a “critical shortfall of qualified workers in the UK – particularly in the north of the country.”

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