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The Guardian’s view on economic rebalancing: Brexit will not do this | Editorial

GJoining the European Union is changing the British economy. But not as the title implies. Last week, Brexit won a £1 billion electric car center in Sunderland, where Nissan will produce a new all-electric car model, and its partner Envision will build a huge battery factory. The news has caused widespread concern. This is good news.But less attention is paid to the fact that the units built will Tailored Rules made by Brussels.

The ministers are shy about what happened Paid Let the Japanese auto giants stay here. Countries often hang economic carrots to attract investment.If we do, the UK will do it stay In the European Union. On the contrary, because the United Kingdom is not in the group, Nissan has the upper hand in the negotiations. If the factory moves elsewhere, this will be a clear signal that the UK is not as attractive outside the EU as it is inside the EU.If there was no investment, the ministers could have Credibly Accused of betraying the “Red Wall” voters.

If Nissan’s investment is a vote of confidence in Brexit, then people have to ask what to say about companies that have left since 2016. down Since the 2016 referendum.This shouldn’t surprise anyone: before Christmas, Boris Johnson managed to lose weight Trade agreement The European Union has brought relief to manufacturers, but it has frustrated the financial services industry, which accounts for 7% of the country’s GDP.

Mr. Johnson called it “Australian“Deal. In fact, the situation is worse than this: it is now easier to sell many financial products from Sydney to the EU than from London, even though the latter is closer to Brussels 10,000 miles. Someone had hoped that the Chancellor of the Exchequer Rishi Sunak (Rishi) Sunak) may be able to save this situation by persuading the EU to give city companies “equivalence” to operate on an equal footing with local European companies. But on the same day Nissan’s announcement, Mr. Sunak said he was trying to obtain these terms. StagnantAs a result, those who wish to conduct securities trading and clearing in the European Union will have to transfer their business to the European continent. This has already happened. Before Brexit, more than half of EU stocks were traded in London; now less than 20%. It is worth noting that the city may now lag behind Amsterdam and become the largest stock trading center in Europe.

Some people may think that this loss is a rebalancing that the British economy desperately needs, requiring more jobs and less shuffling paper.but Financial Services The number of hires is about six times the number of employees in the company auto industryOf course, the rebalancing is best carried out on our terms, not on the terms of others. Our laissez-faire approach to the economy allows us to catch up. The UK stock market is flooded with polluting stocks and there is a lack of investment opportunities in green industries.governmental 15 billion pounds green gilded offer May help reduce the cost of raising funds for renewable energy companies, but the assistance provided is less than United States, France and Germany.

The UK may bet on fintech companies and try to set rules in a fast-growing industry. It can choose to further deregulate by lowering authorization requirements and abolishing disclosure rules. This would be unwise, and it would encourage the sharp approach that led to the last financial crisis. Britain should supervise the city better. It can do so without leaving the EU. Helen Thompson, Professor of Political Economy at the University of Cambridge, said, debate In 2017, the United Kingdom’s status as a non-euro area member of the European Union, while having the euro area’s offshore financial center, also made Brexit inevitable. Now that we have lost this role, the UK is looking for another role.

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