|From Der Spiegel Online|
The day afterwards Sterling and the stockmarkets had plunged - recovering somewhat so that Sterling was "only" down 6% against the $. The FTSE 100 was only down 3% at the close and the FTSE 250, which has more UK exposure, 6%. This means we are now the 6th largest economy in the world - we were the 5th before Brexit - but the real problems are only just beginning. The Bank of England had to make £250bn of liquidity available to the financial system. Exactly as forecast, the SNP are now suggested a second Independence Referendum for Scotland. We will be very lucky to avoid a recession.
The following points seem pretty clear to me:
- Boris and co must take full responsibility for the situation they have created. It may be that they have indeed got the skills required to lead the country to a glorious future. But we need to find out as soon as possible.
- They must negotiate the specifics of our new relationship with the EU, with the First Ministers of Scotland and Northern Ireland. This should include what would happen if Scotland and Northern Ireland Remain in the EU and England & Wales Leave.
- They should then trust the people in a referendum on the specifics where the question is whether the voters Endorse the Brexit Deal or Reject it and vote to remain in the EU under the existing terms. It should be clear that, if Scotland and Northern Ireland Reject the Brexit Deal, they will Remain and it will be the end of the United Kingdom.