Italy and the UK, Italy and France – big talk and empty thinking is a big threat for Finland…

Brexit is a never-ending story that fills the newspapers with what may happen, but never happens. The main problem for Prime Minister May is that she has no sure alternatives to offer her Parliament, because her own party is split by opposing opinions on Brexit alternatives. Her majority in Parliament also depends on an Irish party that is demanding that there is no customs post stopping traffic and people between Northern Ireland (part of the UK) and the Republic of Ireland (part of the EU). She has tried to propose four ideas called “Hard Brexit”, “Soft Brexit”, a “Preferred Customs Partnership Model” and a “Maximum-Facilitation Customs Model”.

The first 2 involve having a hard customs post between Northern Ireland and the Republic of Ireland, while the last 2 alternatives depend on a mini-custom post and the development of a digital customer post where cameras read digital information as goods pass over the border. This last solution would require 5 years of work and is said by many to be almost impossible to work! If all else fails, then there may be a new election, which the Conservative Party fears like the plague. The Party would probably split up into 2 parts and an election victory for Mr. Corbin and his Labour Party! 

The UK is a major trading partner for Finland and this story does not bode well for us, and nor does the following matters from Italy and France.

The Italians know full well that elections create political chaos in a country that has not reformed itself. It is, like France, running a big budget deficit and has a huge public debt. These 2 countries are doing or are able to do very little to change. France has unions that never give up any ground and the Italians cannot even form a responsible government.

The Italians and the French cannot devalue their currencies nor can they increase debt any more  to boost the economy… and if they do nothing you can imagine what will happen to the rest of us within the EuroZone are… 

The French and Italian banks are also in poor shape with lots of significant problems there. There is also plenty to clean up in Germany’s banking sector. Who needs to have a banking union now when faced with such liabilities!

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