BRUSSELS ‘In is in. Out is out. ” The German Finance Minister, Wolfgang Schaeuble, yesterday’s intervention in the debate on Brexit warning the British that if the referendum of 23 June will vote to leave the EU, the UK is finally out of the domestic market and its benefits. “If the majority in Britain opts for Brexit, this would be a decision against the single market,” Schaeuble said in an interview with Der Spiegel: “inside is inside. Outside it is off. ” A solution which can continue to benefit from the internal market without being a member of the EU, as is the case in Switzerland and Norway, “will not work” because it would require to London to ‘comply with the rules of a club which wants to retire, “he explained Schaeuble. According to the German Minister, the Brexit risks causing serious economic repercussions for the United Kingdom and the euro area and trigger a domino effect with other countries ready to take the exit door. But “with my counterparts in the euro area will do everything possible to contain these consequences,” Schaeuble said: “we are preparing for all possible scenarios to limit the risks.”
THE MONITO Schaeuble has unveiled the Plan B which will start on June 24 in case of Brexit. “The ECB is preparing, as well as the Bank of England.” Frankfurt and London according to rumors should announce a deal to avoid a liquidity squeeze in the markets. Also ‘the Commission and partner governments are preparing for possible scenarios, “Schaeuble revealed:” no one knows how the markets will react the next day, “but” if the British will vote to leave the EU, it will be important to stay calm and offer some guidance on the direction “for the future. Berlin, however, preclude the idea of responding with a further leap of integration of the euro area towards political union. “We can not simply ask for more integration,” said Schaeuble: even if the minimum Brexit rejection, you can not continue with ‘business as usual’. Schaeuble’s assurances of an ECB intervention and the Bank of England were not enough to calm the markets, more and more agitated by the prospect of Brexit when the polls are unable to predict the outcome of the referendum.
FEARS the climate is aggravated by the elections in Spain on 26 June and by the fragility of the banking system, particularly in Italy. Among the European markets, Milan suffered the heaviest losses leaving behind 3.62%: bank dragged the price down, after the Bank of Italy has unveiled an increase in bad loans by 3.5% in April. Madrid has lost 3.8%, Frankfurt 2.52%, Paris 2.24%, while London has limited the losses to 1.86%. At European level, the loss of the indices corresponds to about 174 billion valuation that have failed. The uncertainty prompted investors to pick stocks as safe as the ten-year German Bund, whose yields fell to historic lows coming to verge zero. As a result there was a slight rise in spreads with BTP and the peripheral countries’ securities, whose yields still fell to a lesser extent.
If Brexit “there would be financial turmoil, the markets are already nervous, but the medium to long I would not be worried about Italy, indeed in terms selfish would open up opportunities, “said chairman of the Board, Matteo Renzi. However, the output from the EU would be a “big mistake,” said Renzi. Germany also hopes that the United Kingdom remains. “It would be the best outcome,” said Chancellor Angela Merkel.
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