I’m rather surprised that none of the media this weekend reprised the headline of The Times, 22nd October 1957. Fog in channel, Continent cut off. Because that’s a bit how it feels. Anyone willing to listen to Holway over the last few decades will know my views that the Euro was always a doomed project. Conversely, Europe is a hugely important trading block for us and I’m all for maintaining our trading links. On top of that what happens in Europe will always affect us greatly – irrespective of whether we are in the Euro or not. As Philip Hughes, the founder of Logica, often said “Remember, we all sup out of the same soup bowl’.
US and Global SITS companies based in the UK often do this as a very convenient base for their trade with Europe. Same language, stable politics, hardly any real corruption, world leading financial centre, great place to live and bring up kids. The problem with Cameron using the UK’s veto for the first time on Friday is whether the UK, as that great base to do business in Europe, has been adversely affected. I guess only time will tell.
What is certain from our recent conversations with the top CEOs in the UK is that ‘uncertainty’ is rife and is affecting all levels of decision making. Projects are being delayed/kept on the shelf. Nobody knows whether the current round of jobs cuts is enough – most fear much deeper cuts will be required next year. The events of the last few days only add to that uncertainty.
Conversely, my two favourite quotes of the weekend were “the UK is now isolated from Europe like Switzerland’. Switzerland, of course, has the strongest economy and highest standard of living in Europe! The other quote was “The UK might find itself standing alone in the same way as the person left on the quayside as everyone sailed off in the Titantic”.