RaboResearch - Economic Research

Economic Update

France’s 2019 budget to reduce size of government

French President Macron struggles with low approval ratings and decreasing economic confidence, despite a strong parliamentary mandate for reform and upward economic potential. The 2019 budget proposal reduces the size of government, modest improvements in public finances and stimulus for private demand.

Column

There is no such thing as a costless Brexit

Leaving the EU has direct and structural economic costs for the UK, irrespective of how the country leaves the EU. The magnitude of the impact depends on the future trade relationship they will negotiate with the EU, and a transition period could soften the blow. From that perspective it is not reassuring that with six months left before ‘Brexit day’ the UK is still divided over the Brexit objectives.