The Brexit horror stories coming out of the U.K. are hard to ignore. Brexit is taking more time and costing more money than the Brits thought it would. The EU is standing firm and forcing the U.K. to do the right thing by tying up Brexit loose ends and committing to pay the EU a fat separation check. That should make EU leaders sleep a better. There’s no doubt. The EU needs the U.K. as a trading partner and as a money source, but getting to a finish line that both sides can cheer about is not going to happen. This first-ever break by a major power from the European Union and it’s not pretty.
To say the Brexit deal is a tangled web of political maneuvering and hurt egos is an understatement. The United Kingdom is trying to figure out how they can develop new trading partners while the country’s economy is taking a beating. Inflation is up to 3.0 percent, and the pound is down, except for a surge in January 2018. The rules behind the actual break with the European Union is still up in the air. It’s safe to say the British are cursing what Brexit is doing to the country, even though the majority of voters thought membership in the EU was a bad deal.
Time will shed light on the real Brexit story. Manufacturing in the U.K. is better than expected, but the Bank of England is still raising interest rates. The Brits want 2.0 percent consumer growth, but rising prices, slow wage gains, and Brexit are standing in the way.