Labour Leadership Change Offers No Brexit Relief
The UK Labour Party will choose a new leader in the coming weeks to replace the deeply unpopular Prime Minister Keir Starmer, but financial markets see no improvement from political changes. The economic costs of Brexit, estimated between 1% and 8% of GDP, are now undeniable.
The ruling Labour Party in the United Kingdom is set to select a new leader within the next few weeks, replacing Prime Minister Keir Starmer, who has become extremely unpopular. However, this prospect has not raised hopes for political or economic revival. British media and, more importantly, global financial markets agree that any changes to the failing Starmer government's policies could only worsen the situation.
On the tenth anniversary of the Brexit referendum, the economic costs of leaving the European Union have become too obvious to ignore. Credible estimates of the damage range from catastrophic losses of 8% of GDP to about 1% in the most optimistic scenarios. Even ardent Brexit supporters no longer dispute these facts, though they continue to insist that relative poverty is a 'price worth paying' for restoring national sovereignty.
In any case, a policy aimed at closer cooperation with Europe could be more beneficial for the next British prime minister than purely economic gains.
