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23 January 2019

The Guardian: No-deal Brexit 'poses threat to global stability' – CBI head


Carolyn Fairbairn warned bosses at Davos that damage caused by a disorderly exit could spread far beyond the UK.

Carolyn Fairbairn, director-general of the CBI, said the failure to sort out Britain’s departure from the European Union was damaging Britain’s brand abroad and had joined a list of systemic risks to the world economy.

Speaking at the World Economic Forum in Davos, Fairbairn said there was mounting concern at the potential for a no-deal Brexit to cause damage well beyond the UK. The CBI held a private breakfast for UK business leaders in Davos attended by the head of the International Monetary Fund, Christine Lagarde. The UK chancellor, Philip Hammond, will address a CBI lunch on Thursday.

Fairbairn told the Guardian: “At my meetings at Davos, there is a recognition that the causes of vulnerability of the global economy now include Brexit.”

The annual gathering of the WEF has been marked this year by anxiety about slowing growth and the trade dispute between the US and China. Fairbairn said Brexit had now catapulted up the list of worries. “It is everyone’s interest that Britain leaves the EU in a way that works for the British economy, the European economy and indeed the global economy,” she said.

Although Theresa May has decided not to go to Davos this year, several senior Cabinet ministers – including Hammond, the business secretary, Greg Clark, and the trade secretary, Liam Fox, have made the trip to the Swiss alps in an attempt to reassure those running UK and international companies that Britain will remain open for business after Brexit.

Fairbairn said damage was already being inflicted on Britain’s reputation. “The world is watching as the UK seeks to navigate Brexit, and some are questioning the UK’s global brand. It’s a vital time to remind global investors about our core British strengths: openness, creativity, practicality, a pro-enterprise culture. The sooner we resolve our Brexit choices, the sooner we can return to these roots.”

She added: “The most critical thing is to avoid a no-deal Brexit. Business wants no deal ruled out for 29 March as soon as possible. The boost to confidence and investment would be immediate. Without that happening, there will be a continuing drain on jobs and investment across the country.” [...]

Full article on The Guardian



© The Guardian


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