Page 8 - ARUBA TODAY

A8 WORLD NEWS
Wednesday 21 June 2017
As Brexit talks begin, Europe sees economic upswing over UK

By PAN PYLAS general election she called
Associated Press for earlier this month, un-
LONDON (AP) — When Brit- dermining confidence in
ain voted to leave the Eu- her ability to remain in the
ropean Union a year ago, top job.
proponents argued that And the economy started
the British economy was showing signs of worsening.
being held back by the The 15 percent post-Brexit
slow-growing, dysfunction- drop in the pound has
al bloc. pushed up inflation as it
A year on, and with the makes imports, such as
Brexit divorce talks finally food and energy, more
starting, the situation is rad- expensive, causing living
ically different. standards to fall as wage
Britain’s economy is grow- increases fail to keep up
ing more slowly than pace. The consequence is
Greece’s, its households households are spending
are getting poorer as infla- less — retail sales haven’t
tion rises and the govern- grown at a slower rate in
ment is struggling to stay four years.Uncertainty sur-
in power. The remaining 27 rounding the outcome of
members of the EU, mean- the Brexit talks, such as the
while, appear to have European Union flags fly at half staff in front of EU headquarters in Brussels on Monday, June 19, possibility that Britain crash-
pushed into a higher gear 2017. The flags were lowered on Monday to show solidarity for the victims of deadly forest fires in es out of the EU with no
and found renewed vigor Portugal. trade deal, is also likely to
from the election of pro-EU (AP Photo/Geert Vanden Wijngaert) make consumers cautious.
governments like that of bolden the EU negotiators Instead of falling into re- was another body blow to As will the prospect of high-
France. in the Brexit talks, though it cession in the wake of the go with the debt crisis that er interest rates from the
“The tables have turned is still far from certain how Brexit vote, as many econ- raised questions over the Bank of England, though
somewhat,” said James the talks, which are due to omists had predicted, Brit- future of its euro currency Governor Mark Carney
Nixon, chief European last two years, will play out. ain was last year one of the and the struggle in dealing sought on Tuesday to rein
economist at Oxford Eco- Still, it’s a role reversal for fastest-growing economy with the flow of refugees back expectations of any
nomics. “The European Britain, which had been among the Group of Seven from Syria. imminent hikes. Expecta-
economy is now enjoying buoyed by strong growth industrial nations. That was Since that post-Brexit re- tions of higher borrowing
a solid upswing and senti- in recent times — even af- largely due to the sharp fall bound, things have clearly costs had been stoked by
ment, especially towards ter the momentous vote on in the value of the pound gotten worse for Britain this the outcome of last week’s
the EU, is improving.” June 23, 2016 to leave the in the wake of the Brexit year. policy meeting, which
The situation could em- EU. vote, which made British Prime Minister Theresa May showed that three of eight
exports cheaper in interna- failed spectacularly to rate-setters surprisingly
tional markets. achieve a majority for her backed the first increase in
For the EU, the Brexit vote Conservative Party in the nearly a decade.q
Merkel vows to get US free trade deal

By GEIR MOULSON agreement as possible on ther steps,” she said.
Associated Press this in Hamburg,” Merkel Trump has criticized Ger-
BERLIN (AP) — Chancel- said. “In view of the new many for its sizeable trade
lor Angela Merkel vowed American administration surplus with the United
Tuesday to seek a broad that isn’t easy, but we must States, and Berlin also has
agreement on trade at make the effort nonethe- faced criticism from other
next month’s Group of 20 less.” European countries.
summit and told German President Donald Trump Merkel renewed her de-
business leaders that she has pulled the U.S. out of a fense of her country’s re-
won’t give up on a free- trade agreement with Pa- cord, arguing that imports
trade deal between Eu- cific nations. Prospects for and exports shouldn’t be
rope and the U.S. a planned U.S.-European viewed “in isolation” as
Merkel will host leaders of Union deal, the Trans-Atlan- German products often in-
the G-20 powers in Ham- tic Trade and Investment clude parts from elsewhere
burg on July 7-8 amid Partnership, also look poor. in the EU, helping boost
widespread concern over Merkel, however, insisted productivity elsewhere.
the Trump administration’s that it offers a chance to set German direct investments
“America first” approach “common standards that in the U.S. are almost 10
to trade. In a speech to an others in the world wouldn’t times higher than U.S. com-
annual German industry be able to get around so panies’ investments in Ger-
congress, she stressed the easily,” given that a U.S.-EU many, she added — “a lot
need to persuade others accord would cover about of jobs in the United States
of the advantages of open 30 percent of world trade. depend on this, but this is
markets and free and fair “I will continue to push for also a contribution to world
world trade. us to move forward here, trade because, of course,
“We will do everything for us not to put the project there are also exports from
to achieve as broad an on ice but to try to take fur- the United States.” q