The Strategist

George Soros launches Operation Anti-Brexit

02/09/2018 - 03:08

The well-known financier George Soros turned his attention to the United Kingdom. He decided to help British public organizations that oppose the country's withdrawal from the EU, and transferred them £ 400,000.

Niccolò Caranti
Niccolò Caranti
Public organization Best for Britain, which opposes the country's withdrawal from the EU, reported about transfer of the large sum. "George Soros funds, like other major sponsors, have made significant donations to us," said chair of the organization, former British diplomat and former Labor Minister Mark Malloch-Brown. "He (Soros) donated us £ 400,000 through his funds."

Public organization Best for Britain was established in April last year. Its goal is "an open door for Britain in the EU." The organization is engaged in agitation among the population and encourages British parliamentarians not to vote for the "hard" Brexit, believing that this will harm the British economy and the labor market. Best for Britain’s main goal is the organization of a re-referendum on the withdrawal.

Reports of George Soros' substantial donation to British public organizations aroused wide resonance. George Soros is considered one of those financiers who in the early 1990s conducted an "attack" against the British pound and the Bank of England, earning about £ 1 billion on it.

In addition to George Soros, some media mention the founder and head of the British advertising holding WPP, Sir Martin Sorrell. Last year, he told the Independent newspaper that Brexit had already caused great damage to Britain and its "global brand" because of the growth of nationalist and xenophobic sentiments. "How will we attract the best and brightest people from Europe after Brexit and how will we correct our spoiled image after all that rhetoric that only breeds discord and disagreement?", said Mr. Sorrell, who was repeatedly included in the ratings of the best top managers and businessmen of Great Britain and the whole world.

If negotiations on a trade agreement with the EU fail, London will have to borrow an additional £ 120 billion for 15 years after March 2019 to cover the budget deficit, according to a leaked secret document from the British government. The amount of possible savings after Brexit is estimated at £ 40 billion, that is, net losses amount to £ 80 billion. However, some experts doubt that the real amount of benefits from Brexit can approach £ 40 billion. In particular, this estimate includes savings on the rejection of European regulations, including environmental regulations. A possible conclusion of an agreement on free trade with the US will spur GDP of the country only by 0.2% under the most optimistic forecast.

Paradoxically, the most active supporters of Brexit will be hit the hardest: the north-east of England and the Western Midlands, which voted for the exit, may lose 16% and 13% of their economic growth. London, where 60% voted against, will lose only 1-4% of GDP growth. In general, Brexit will provoke an increase in retail prices by 21% over 15 years, food inflation will amount to 17% (WTO scenario will accelerate it by another 12.7%), cars will rise in price by 14%. Report of the American analytical center Rand Corporation also mentioned negative consequences of Brexit under any scenario.