Sunday, August 7, 2016

The Brexit, migration and the “City” of London – Los Andes Peru

To confirm the result of the referendum in the UK last June 23 refugee management seemed to be the main European problem. However, a relatively marginal to such a deeply rooted European identity in representative democracy (1) mechanism served to demonstrate how easily demagoguery can permeate referenda and plebiscites, in this case projecting its threatening consequences to the UK, the European Union and the rest of the world.

Allowing collective emotions defeat easily to the logic of the economy, the council of good policy, and even common sense citizen, the referendum called by the now resigning Prime Minister Cameron, it erodes the European Union, one of the few episodes of success in modern history, as recognized by Kazuo Ishiguro, one of the most prominent writers of contemporary English language, remembering that “… so envied transformation of slaughterhouse total wars and totalitarian regimes that Europe was in a region of liberal democracies living in a friendship without borders is today deeply threatened by the British myopia “(2).

the potential consequences of Brexit are diverse and nothing encouraging and his extensive analysis exceed the available space. I try to approach a motivation that seems to be so far away from the public as a result of a campaign that has wanted to put all the emphasis on the citizen anger with European rules on free movement of persons.

What more draws attention in dissecting emotions and British actions is that politicians who encouraged the Brexit never had this as manage the success of its mission, as evidenced by the subsequent resignation of Boris Johnson, former Mayor of the “City” London (3) his expected nomination Conservative leadership, or Nigel Farragel, leader of the UK Independence Party (UKIP) and European parliamentarian. Both, along with others, demagogically argued against the impact of migrant workers that the EU Central forced the United Kingdom to receive, omitting referring to the high number of their nationals residing in southern Europe covered by the same rules of mobility. Thus concealed that while in the first case is workers who pay taxes and pay contributions to the British social security, in the second it is mostly pensioners by age pressure on health services and social protection mechanisms of Greece, . Italy, Spain and Portugal, among others

They had a management plan for the Brexit because the decision to leave the EU obtained their ultimate goal: to free the City of London of regulatory frameworks Brussels especially those resulting from the financial crisis of 2008 made political priority for Brussels banking supervision and general financial regulation. This includes the creation of a European banking union -in which foreseeably States not part of the eurozone, except the UK, participate seek to not be marginalized in decision-making- well as the standards known as MiFIT II (4) to regulate capital markets that should be incorporated into the national legislation last July 3 and become applicable in 2018.

in fact, the four lawsuits filed in October 2015 by Prime Minister Cameron to their EU partners to prevent the referendum last June, they did not mention explicitly the immigration issue put forward by the promoters of Brexit. On the contrary, these demands were focused on (5):

a) Leave the UK outside of any progress towards a European supranational state, except the fundamental principle of “a growing Union”;
b) an “explicit statement” reaffirming that the EU is a union with multiple national currencies and therefore the Euro is not the official currency of the EU;
c) Establishment of a system of ” red card “to grant national parliaments the power to stop unwanted directives approved by Brussels or repeal existing legislation to date; and
d) A new structure in the Union that prevents those EU members that are not in the eurozone will not be dominated by the rules decided by the Eurogroup, with particular regard protections for “City” countries London.

the expectations of Cameron were not supported by its European partners, without ignoring the political problems confronting the government of the island, did not seem willing to allow what would have meant a decisive step backwards in the integration process (6). However, the nature of those four points leave no doubt that the true British objective has at all times to do with the “City” and not migrants was the argument used to mobilize voters in favor of Brexit.

the draft European banking union be oriented to stimulate in Europe growth mechanisms of non-bank financing, thus reducing the vulnerability that produces the high dependence that exists today regarding banks, as was stated in 2008. the bank collapses in a global context may have implications for the global economy so it is essential to ensure strict regime while uniform for all operators to avoid drilling supervision supervision.

it is that crisis happened to a period of significant growth of the banking sector in Europe. About ten years in countries like Germany or the UK itself saw double the ratio in the size of their respective banking sectors for the bond markets or stocks; while in the United States that same ratio remained almost unchanged. This difference was even greater in the countries of the eurozone, where up to two-thirds of the financing obtained by non-financial companies came from bank loans, unlike the United States where that relationship does not reach 20%. In the UK, meanwhile, stock markets and bonds have a far greater importance in financing business to what happens in the rest of Europe investment.

As is known, the result has had and still has consequences of greater and longer term in continental Europe as banks were forced to restrict credit to preserve and rebuild the proportion of their capital in respect of their loan portfolios, thereby affecting the growth and prolonging up now the recovery period.

in the UK, however, the accumulated between 2008 and 2015 growth was higher-about 6% vs. 2% in the case of the eurozone but still weak to leave so marked that produced the crisis recession, however, is evaluated as an intermediate growth between achieved in that period by the United States and the rest EU.

at least in part this could help to explain why in London -city who voted overwhelmingly to stay in the EU even the pro-Europe prefer to address the challenges of the banking sector from the national dimension they assume that in any case will not be very different from Europe, but in respect of which remain at the national level the last word. However, not belonging to a banking union would have not participated in the process of making decision by the European Central Bank.

thus understood the motivations, the referendum was also enhanced by the fact that the UK it is mainly an island, their language is increasingly close to being universal and possesses nuclear weapons, which certainly constitutes an important contribution to collective self-confidence, even without consulting the true costs that this decision can get them to inflict.

as for the EU what happened can be an opportunity if they choose not exhausted in damage control, let go of self-complacency that accompanies it in a context of low growth, high tax taxation and excessive regulation; and make this crisis into an opportunity to advance integration in many respects was hampered by the UK. common in fields such as defense, fiscal and energy, complemented by a democratization of the election to critical positions in Brussels, making the result of the will of citizens and not political arrangements in the Council, added to a sinceramiento in protection policies Policies social, liberalization of services, among others, should enable the EU to strengthen, regain leadership and revert to ensure that the values ​​of the West survive the onslaught of globalization.

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1 with perhaps the exception of Switzerland, where referendums have a strong tradition.
2 Financial Times July 1, 2016. Life & amp; Arts. Kazuo Ishiguro on His fears for Britain after Brexit. See at Accessed July 1, 2016.
3 Name the square mile that is referred to within the city of London in which financial corporations that have made the UK run a world center of the first order and constitute the engine of the British economy today.
4 MiFID is the acronym of the Directive for Markets in Financial Instruments. originally adopted as Directive 2004/39 / EC was amended as a result of the financial crisis after being approved by the EU Council in May 2014
5 Véase:http://www.telegraph.co.uk/news/politics/david-cameron/11924603/David-Camerons-four-key-demands-to-remain-in-the-EU-revealed.html. Accessed July 1, 2016.
6. While circulated versions is not implausible about preparing in Frankfurt of a plan to avoid prejudicing the City, an essential understood and European concern was not to leave spaces as open as to operate unsupervised financial markets, especially after . experience 2008

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