Germany’s EU Commissioner Günther Oettinger told German newspaper Bild today that he wouldn’t place any major bets on Brexit ever actually happening.
UK’s vote to leave the European Union is doubted by the commissioner saying that the longer the British government waits to invoke Article 50, the more insecure the situation will become. He also accepted that the Brexit referendum vote was binding, but it is possible that public opinion will tip if the economic situation in the wake of the Brexit vote worsens.
Article 50 is the legal process of leaving the union and once activated, it would trigger a two year countdown to leaving the EU. According to legal advice reportedly given to Prime Minister Theresa May, she is not legally required to put the triggering of Article 50 to a vote in the Commons, but can do so herself using the powers of the Royal prerogative. However, the PM previously said that the article will not be enacted this year, the government needing to shape Britain’s exit objectives first.
The idea of the Prime Minister activating the article is currently being challenged in the courts by people who insist PMs must take the decision as the referendum vote was not actually legally binding. Anyway, it could take a lot longer than two years to leave the EU, according to a leading EU law professor, Michael Dougan.
He said: “The overwhelming consensus is that these things do not take two years to negotiate, the rough guide that we are all talking about in the field is around 10 years. […]The treaty said that you have two years within which to make your divorce settlement. […] But the divorce settlement is completely separate from the framework agreement for your future relations with the EU.”
Germany’s Jobless Rate Declines Despite Brexit
German unemployment continued its more-than-expected decline in August, showing a good economy as of the present. This is their 12th consecutive monthly fall, and it raises hopes that private consumption driven by a strong labor market may cushion the blow to Europe’s largest economy from Britain’s decision to leave the EU, turning it into a main pillar of growth.
The number of jobless people remained at a record low of 6.1%, falling by a seasonally adjusted 7,000 to 2.675 million, according to the Federal Labour Agency in Nuremberg on Wednesday. This is more than what economists in a Bloomberg survey forecasted, which is a drop of 4,000.
Meanwhile, German retail sales data showed the sector grew by 1.7% in real terms from January to July compared with the same period last year.
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