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UK's Cameron: Leaving The EU Would Be 'A DIY Recession' For The Country

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UK's Cameron: Leaving The EU Would Be 'A DIY Recession' For The Country

Presenting a finance ministry report published Monday, UK’s Prime Minister David Cameron warned that leaving the European Union would be like pushing the self-destruct button on Britain’s economy, a Reuters article reported.

A Brexit (as the media has dubbed the potential event) would lead to a recession, a drop in the pound (of 12 to 15 percent), a sharp spike in inflation and roughly half a million jobs lost, the research note pointed out. As per the report, the economy could shrink by up to 6 percent over the two years following a potential Brexit. “It would be a DIY recession,” Cameron recently said in a speech.

As readers can deduce from Cameron’s words, the head of state, and his finance minister George Osborne, are clearly against a Brexit, and captaining against it, ahead of the June 23 referendum.

Related Link: Lots Of Talk About The Brexit, But What Do Traders Think?

Leaving the EU would put Britain’s recovery from the last financial crisis in jeopardy, the prime minister continued. In fact, he compared such an action to “surviving a fall and then running straight back to the cliff edge.”

To Cameron’s relief, however, most recent polls have shown a slight preference toward an “In” vote, although the margin is too small to draw conclusions yet, researchers have cautioned.

On the other side of the discussion, supporters of the Brexit have argued that the Treasury’s reports have been consistently flawed and biased, “to scare the pants off the British people because they can't find anything positive to say about the European Union,” as per Nigel Lawson’s words.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.

 

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