Brexit: an unsolvable problem with Europe

I finally am back to Istanbul after a long series of national and international conferences. Today, I’m going to pick my commentaries up where I left off and Brexit seems like the most devious item on the world agenda.

During a meeting at Turkish Exporters’ Assembly,British Consul-General Judith Slater had said to us, “By insisting on a non-deal Brexit, PM Johnson may be forcing the EU to strike a better deal with the UK…” I naturally did not make any comment about what she said as she was obviously saying those words just to keep up the appearances. The only thing I said was, “I really do not wish to make any excessive comment about someone who performs the same tasks as once Margaret Thatcher did since I have tremendous respect for Thatcher”. Boris Johnson feels extremely restless in his office because he is not capable enough to fill the former PMs’ shoes.

Last week, PM Johnson’s Brexit deal with the EU was almost agreed and this brought some positive impact on the markets as well. However, it ran into trouble at home, as DUP in parliament said they could not support it.

Parliament met for the first time on a Saturday in 37 years to debate and vote on Johnson’s Brexit deal. As a result, the government lost by just 16 votes. The opposition insisted that the parliament should vote on necessary changes first. Why don’t we take a quick look at the roots of Brexit?

“Who said ‘yes’ and who said ‘no’ to Brexit?”

The United Kingdom consisting of four constituent countries, England, Scotland, Wales, and Northern Ireland, had voted to leave the EU by 52% to 48%. While 54% of voters in England and 53% of voters in Wales voted to leave, 56% of the Northern Irish and 62% of the Scottish had voted to stay in the EU. Apparently, there is not full consensus even among the British, which naturally causes strong differences of opinion about Brexit among the parliament members as well.

Other than that, British parliament insists on making the necessary revisions first and then voting on Brexit due to Johnson’s unreliable decisions and behaviour. So, the PM sends EU an unsigned request seeking Brexit delay. Surprised to receive an unsigned request letter for extension from Boris Johnson, European Council president Donald Tusk says he will talk to the EU leaders.

This recent development and the upcoming ones will inevitably causes violent fluctuations in exchange rate EURO to US DOLLAR as well as in exchange rate GBP) to USD and exchange rate GBP to EURO.