Brexit poses a 'great risk to Italy'

British Prime Minister, Theresa May, delivered a speech on Brexit Tuesday.

 ROME -- New British Prime Minister Theresa May gave a speech Tuesday regarding Britain’s so-called ‘clean exit’ from the EU, aimed at providing some clarity on the controversial subject, yet financial sources claim that from a business perspective, Brexit “poses a great risk for Italy.”


 No other example previously set by other countries shall be used as a base for Britain’s pathway to independence from the EU, and Mrs. May did not even refer to ‘hard’ or ‘soft’ Brexit in her speech. Instead, the matter shall be dealt with in a carefully considered manner -- a ‘clean exit’ if you will.


 Negotiations shall last for at least two years, and hence it is impossible to calculate the effect of the French and German elections, nor the evolution of relations between Trump, Vladimir Putin and Xi Jinping, on global commerce.


 But at least one thing was made very clear by May -- the UK shall leave the single market. The main reason indicated for this was to control the flux of people coming into the country. This means, although it seems strange to imagine, that European citizens moving to London will technically be viewed as immigrants.


 If this becomes the case, the EU principle of free circulation of people may be lost. Over three million European citizens study and work in the UK, many of them occupy top-ranking positions and are crucial to the British economy. Around 0.5 million are Italians. On the other hand, over two million British expats have made their homes around various countries in Europe, many of whom are pensioners.


 The topic of exportation is also being discussed. British exports to the EU in 2015 amounted to 197 billion dollars, 40 percent of the overall total for the country. Italian exports to the UK amounted to a little over 20 billion, whilst imports amounted to around 10 billion.


 Clearly, any decisions from London could result in major economic consequences and reciprocal damage. A commercial collision could be the consequence of the British major resolution, already announced by the government, to lower business tax, potentially accentuating fiscal competition, something which Italy should fear the most.


 “One thing is for certain,” says Roman daily Il Messaggero, “Electoral jingoism is set to increase throughout Brexit negotiations (…) and Brexit could be the start of the exit from Europe of other member countries too…”