Brexit is happening before March 2017 – Are you ready?
Prime Minister Theresa May is driving the plans for a withdrawal of the UK from the EU (Brexit). Before the end of March 2017, the Prime Minister wants to trigger Article 50 of the EU Constitution to initiate the proposed referendum on the United Kingdom membership of the European Union.
At least this was what everyone thought would happen. The withdrawal from the EU was planned to be an important topic during the conference of The Conservatives conference, which was held from October 2nd to 5th, 2016. The plan was to set the ‘right course’ during the conference.
Brexit causes massive drop of British pound exchange rate
During the conference, Mrs. May’s speech last Sunday intensified worries in the financial markets about the economic impact of Britain’s decision to exit the EU. Last Tuesday, British pound fell to its lowest level against the Euro since 1985. This clearly reflects the concerns about the terms of the withdrawal, for which negotiations will start by the end of March 2017. The stock market went up as with a weak pound the export of UK products would receive a significant boost.
In her final speech of the conference the Brexit wasn’t mentioned to and extend as expected by leading experts.
Consequences of Brexit for supply chains
Interesting enough and to the general astonishment of the Finance- and Export Industry she also announced that the UK will not submit to the jurisdiction of the European Union anymore. She said to submit a legislative initiative – the so called ‘Great Repeal Bill’ – to cancel the validity of EU laws in the UK. Our question lies on whether this initiative is being submitted outside of Article 50 or not?
If the answer is yes, the process would speed up changes in the Supply Chain field, Procurement (contracts etc.) and general trade significantly.
We will keep you updated on the latest developments and our research team as well as the blog team is watching the space for important developments on the Brexit.
Stay up to date about Brexit
If you need more information on the implications on Supply Chain Management, please read our whole coverage of the Brexit. Learn for example which supply chain areas you should watch in particular and how you can protect your supply chain now.
What do you think are the implications of Brexit? Do you think, your business will be affected?
I’m very happy about your comments about this topic.