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Brexit impact worries some more than others

SBS World News Radio: French finance minister Michel Sapin says Britain's decision to leave the European Union can only be negative for the country.

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Brexit impact worries some more than others

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The European Commission has revised down its forecasts for growth in the euro zone and in Britain after the British vote to leave the European Union.

But the International Monetary Fund takes a different view, saying, while Brexit has caused increased uncertainty, stock markets have recovered their losses.

French finance minister Michel Sapin is warning of negative economic consequences for Europe in the wake of Britain's decision to leave the European Union.

His warning comes after a meeting with the United States treasury secretary in Paris.

"We addressed together the possible consequences of the economic situation in Great Britain, which cannot be enriched, if I can say so to begin with, in the wake of Brexit, with consequences that can only be negative for Britain. And if there are negative consequences for a large economy like Britain, this has negative consequences all around, especially for those who they used to work with closely. I'm referring to the European Union countries."

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But his US counterpart, Treasury Secretary Jack Lew, has emphasised it is in everyone's interests that talks between Britain and the EU produce an integrated relationship.

"It's important that both sides demonstrate flexibility in order to produce an amicable and mutually acceptable outcome. It's also critical that the negotiations take place in a smooth, pragmatic and transparent way."

The International Monetary Fund says, while the Brexit vote has prompted a rise in the US dollar, it appears Brexit will have what it calls a negligible impact on US growth.

And the IMF says stock markets have recovered losses incurred in the immediate aftermath of the vote.

Bank of England governor Mark Carney has hinted more economic stimulus could be on the way to lessen the impact of Brexit.

"We wouldn't represent this as the single silver bullet. It is part -- and should be seen as part -- of a series of measures, including contingency planning, including things that other parts of the Bank of England could potentially do, that would provide the right type of response to this situation."

Meanwhile, Britain's parliament will debate a petition signed by more than four million members of the public calling for a second referendum on EU membership.

However, incoming prime minister Theresa May has already ruled it out.

 


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