The European economy is slowing down. With this, we have the Brexit. The Brexit will have serious implications on the European economy. The Brexit will have serious implications. The Uk is expected to lose 10,000 jobs. On the European side, there are 422,000 jobs at risk. Of those are 100,000 in Germany. Germany is the economic powerhouse of Europe.
But Germany is not the only country which is facing tremendous job loss. France will lose 50,000 jobs. Ireland is expected to lose 100,000 jobs. So it is clear that the Brussels bureaucrats are playing a risky game.
It is very likely that the bureaucrats will lose control. The European economy is in a very fragile state. Next to this is the financial system under pressure.
Everyone knows that Deutsche Bank is in big problems. Next, to this are there massive risks in the Eurozone financial system. Financial risks that the United Kingdom is also liable for. But that will end when they leave the EU.
So the situation is very risky. Especially I financial institutions are highly integrated. They have counter risk. so when 1 financial institution will go bust then it is very likely they will take others with them.
If we look at what is happening in Europe than we see a very unbalanced economy. France and the South of Europe are a financial mess. They rely upon German production to keep the economy going. This I the problem for Europe. The German economy is no longer strong and growing. It is heading towards a collapse.
Europe is dependent on Germany’s economic power. so by being so it is in problems. The German economy is hit by a few major sufferings at the same time. Let’s examine this in a little bit more detail. first of all, there is a trade war. Germany is very depended on its exports to China. Next to this is the export to the One Belt project under threat from the trade war. President Trump already threatened to put sanctions against Germany. Then we come to another problem and that is the environmental impact. New environmental regulation makes the motor sector need to change. This sector is important for German exports. The final point is technological change. A change which is hurting the conservative industry.
The German economy is in bad shape. It is a stupid decision from the bureaucrats in Brussels to go for a hard Brexit. Not only would a simply mutual beneficial trade deal be best for both. The European economy has a lot to lose. What if Boris johnson makes a free trade arrangement with the USA? The USA is the most important trading partner for the United Kingdom. While the European Union member states are just trading with each other. Unfortunately, the Brussels bureaucrats and European politicians are not seeking wealth increase for the people, but just political victories. At the cost of the people.