Juncker in a speech today made it clear that the UK’s attempt to leave the EU would not be free or at a discounted coast. He made it clear that the money committed to future plans by the EU will be paid, this even includes payments to the pension fund. The Commission leader also suggested that until these terms were met there would be no way of starting trade talks.
The number being thrown around was as much as £51bn over the next six years, which is unlikely to sit well with the British public.
Strong EU PMI Data
PMI data in Germany suggested the economy was growing at the strongest rate in just under three years, with manufacturing doing particularly well. There was also better than expected results for France and a general positive trend across the Eurozone.
Such strong data from Germany will put the European Central Bank under even more pressure to increase interest rates. Whilst inflation across the EU is still relatively low the recent boost in performance may start to change things. The major problem facing President Mario Draghi and his team is how will an interest rate hike effect everyone. The struggling economies who owe huge sums would be in a trickier situation, along with the general population of those nations as their money would be worth less.
Greece are thought to not be as bad as expected at this stage as a major bailout is avoided once more. There were talks a further €86bn will be needed however this no longer looks the case as Greece managed to make a €2bn payment. The Eurozone has proven on countless occasions how efficient they’re at sweeping problems under the carpet and it looks as if the Greek deficit could be kept hidden a little longer.