We’ve voted to leave the EU. What happens now? Well no-one is quite sure and that is already causing problems.
Early signs suggest that some businesses will respond by freezing recruitment, postponing investment and relocating jobs out of the UK. How much of this will happen is anybody’s guess but as the period of limbo drags on, it is likely that many firms will decide that life would just be easier for them somewhere else. This uncertainty, says Duncan Weldon, is poisoning our economy. Many economists are predicting a recession.
The trouble is, it is very difficult to see how this is likely to end. There are a number of options for designing Britain’s new trade relationships with the rest of the world but all of them have their problems. The Norway (EEA) and Switzerland (EFTA) models, while giving us access to the single market, would still allow freedom of movement which…
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