Greetings of the day everyone !
So based on the popular calendar that we currently use, this day is, the 27 th of June 2016. I was away last week, partially it was an intentional decision and also I had to do some running around. A lot has happened while I was away, and now we are living in and with the aftermath of the post referendum day in the UK. I went to the classroom earlier today, and my teacher said, the topic of the entire day is going to be BREXIT. I went around the classroom, to see if any of my friends have done some work, which I could use, to write up something that might please my teacher, or at least get her off my back. But to my surprise, most of friends aren’t in the mood, and after talking with some of them, I am getting a sense that, they are probably not willing to accept a BREXIT or what has transpired. I sincerely hope the teachers and the principals, have a sense of what might be coming. And, if you are wondering, why principals and not principal? Well, we go to a special school where we have a number of principals, and that’s why it’s difficult to run the school sometime. Also, most of the times, the teachers and the principles haven’t a clue of what’s happening inside the school.
Anyways, it seems to me that, while some of my friends are visibly quite confused and in shock, but others are getting quite determined to teach the teachers and the principals, a lesson, and they may be gearing up to bring down the school, not in the literal sense of the word obviously. I didn’t know what to do, so after consulting with my grandMa, I decided that the prudent thing to do, will be to take my leave, and also take my books and belongings with me, just in case. And I can’t blame my friends, because 99% of what they thought was known is, now Unknown to them.
But, I don’t want the teacher to complain to my parents, for not doing the assignment, so therefore, I called upon my Birdie friend ( the tweeting bird ), to help me out with the assignment. The translation equipment that I generally use to communicate with her, isn’t working well today, so I hope, I am doing justice to whatever she shared with me.
And here is what I believe, she wanted to share with me.
- U.K. could replace its current arrangement with EU, with a free trade agreement. Obviously, the details will need to be worked out.
- U.K. could also create similar free trade agreement with selective partners in Asia, Africa as well as Latin America.
- To agree the free trade agreement with the EU and also to keep access to the single market. UK could possibly agree with the EU, to keep the status quo of all the EU citizens currently living in the UK. And also a quota based immigration with the EU could be agreed, to support its services and construction sector. Also an arrangement could be reached, where EU migrants could still enjoy quasi home status in the UK, and to remove the stress on the healthcare system, new migrants could be asked to pay a nominal consultancy fees to GP ( general doctors ), and any social benefit claims could be restricted for at least 2-3 years. So they may not immediate access to public funds. Their kids under 16 could access the healthcare system for free, but a nominal fee could be charged by the state school for education. And the same arrangements could apply for British citizens, who may want to live and work in the EU.
- UK could possibly become an offshore hub for euro denominated trades as well as RMB and who knows going forward may be Indian Rupees, and other growing markets.
- In a post BREXIT world, UK should be able to free up some of the cumbersome EU legislations, to make its financial system as well as the overall economy more attractive. Also any dial up on the existing efficiency level of various parts of the economy, will and should positively reflect on the investments coming into the country.
- U.K.’s financial sector could still play a larger role in creating revenues for the country, and it can surely help China and India as well as other Emerging markets upgrade their financial infrastructure, and help them become developed markets over the years. This could be done through bilateral agreements.
- A cheaper pound isn’t always a bad thing, it could help UK in getting some high end manufacturing back, also it may help improve the overall demand for real estate especially in London from overseas buyers. Councils could be given powers to work with overseas as well as local developers to allow them to build more housing across the country especially in high demand areas. UK companies may be able to gain market share while exporting good and services to other countries with a chapter pound. All this will help the economy.
- And some inflation, because of cheap pound, might in fact end up becoming, a blessing in disguise. And it will put UK in a better position than EU. Also, a rate hike isn’t necessarily going to be, a net negative for the overall economy. A positive interest rate differential with continental European might in fact encourage investors to put capital in the city of London, which also give a floor to pound.
- Scotland and Northern Ireland won’t do well in the EU, for a number of obvious reason, the biggest one is, delinking themselves from the overall UK economy, can and will have a damaging impact on their respective economies, and they have much more in common with their cousins in the UK than EU. Ireland could get a special status, so the existing relationship can be preserved without the need for setting up borders.
- UK could delink NHS from Westminster and party politics, and it could be independently managed, but continued to be funded by the treasury. Also, to keep the funding sustainable, NHS could create provisions, whereby GP access will come with a nominal consultancy fee paid directly to the GPs, with exception for children under 16 and pensioners. Foreign residents could be asked to buy into a partially subsidised healthcare insurance program enabling them to access NHS.
- To help with the mounting retirement costs, UK government while working the private sector could encourage some of the retirees, to consider retiring in places with lower living costs. A board could be set up, to monitor and supervise the standards. And UK companies with their local partners could participate in tenders to build and develop the infrastructure and townships, with funding support from pensions schemes etc.
- UK could dial down on some of the heavier regulations as well as the cost of doing business, to become more competitive.
I was hoping the tweeting bird will keep talking, but while we were talking, the birdie got another distress call, and left saying, we can talk about other things later, but for now, at least your teacher won’t be disappointed in you. And some of your friends, don’t seem to be in a mood to accept a BREXIT, so who knows, they may force the teachers along with the principals, to come to the negotiation table. You don’t fight nature, you work with it, or nature can destroy you.
So, there we are. I thought, I will take the liberty and share the ideas from the tweeting bird, and throw it in the pot along with others.
Good day to you all!