• 52 mins Cobalt May Be The Key To Clean Hydrogen Fuel
  • 2 days How Taxpayers Are Bankrolling The EV Revolution
  • 3 days The Coronavirus Is Crushing China’s Car Market
  • 4 days Fighting For Survival In The Streaming War
  • 5 days Want A Job? Forget About A Bachelor’s Degree
  • 5 days Another Major Car Maker Is Backing Hydrogen
  • 6 days Are Americans Finally Sold On Soccer?
  • 6 days Is The Tech Bubble About To Burst?
  • 7 days Coronavirus Could Cost Tourism Industry $80 Billion
  • 7 days What Web Traffic Trends Can Tell Us About The World
  • 7 days Miners Face Greater Headwinds
  • 8 days Boris Johnson Proposes Billion Dollar Bridge To Northern Ireland
  • 9 days Goldman Slashes Oil Price Forecast By $10
  • 10 days Tesla Raises $2 Billion In Share Selloff
  • 11 days What The T-Mobile Takeover Of Sprint Really Means For Markets
  • 11 days The U.S. Has Charged Huawei With Racketeering And Conspiracy
  • 11 days How Hydrogen Could Become The Fuel Of The Future
  • 12 days Millennials Can’t Retire, But They’ll Still Have To Help Their Parents
  • 12 days This Gold Miner Just Increased Its Dividends By 40%
  • 12 days Airbnb IPO Under Threat As China's Economy Drags
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Brexit Common Sense From Sweden; Export Pain and EU Goats

No one wins trade wars. And it makes no sense to try. At long last someone has figured that out, most likely because a trade collapse has already started.

Please consider Sweden Holds Out Olive Branch to Brexit Britain.

Sweden has warned that it would be a serious mistake to chastise Britain for voting to leave the EU, appealing instead for an amicable settlement to minimise damage for both sides.

"The softer the Brexit, the better. We're an open country and we are in favour of free trade, and we want to see a solution that is as beneficial as possible for everybody," said Magdalena Andersson, the Swedish finance minister.

The olive branch from Stockholm reflects the shared view of the Nordic bloc that there is nothing to be gained from a fractious divorce between Britain and the EU.

The comments came as Swedish companies start to feel the chilling effect of the referendum campaign in Britain and the sharp fall in sterling. Data released this week show that Swedish exports to Britain are in free-fall, with a drop of 19pc over the period from January to July compared to the same period a year ago.

Pharmaceuticals fell 38pc, chemicals 23pc, and paper goods 15pc. "It's amazing. If this persists, it will lead to fewer jobs in Sweden," said Andres Hatzigeorgiou form the Stockholm Chamber of Commerce, speaking to Dagens Industri.

There are over 1,000 Swedish companies operating in Britain, employing 100,000 people, from Saab, Scania, and Electrolux, to Skype and Ericsson, to Ikea and H&M. "They're worried about potential trade barriers and tariffs, and about the Swedish personnel," said Ms Andersson.

Mrs Andersson hinted that there may be some leeway for creative statecraft once Article 50 is triggered and the picture becomes clearer. "We have to know what the British government wants, what is their idea of a new relationship with the EU, and then we can start discussing from there. This is all part of the negotiations," she said.

"I can imagine there might be some cherry-picking within that. We should definitely not underestimate the complexity of the issue, and also the consequences," she said.


British Pound vs. Swedish Krona

British Pound vs. Swedish Krona Weekly Chart


Export Pain

There's nothing like a bit of export pain to get the head thinking clearly. No doubt German exporters are aware of the issue as well.

Will Merkel remain a stubborn goat, insistent on punishing the UK at a far greater expense to Germany?


Related Articles

 

Back to homepage

Leave a comment

Leave a comment