IMF Changes Tune On Brexit: Prior Fearmongering Suddenly a 'Better Opportunity for Reform'

By: Mike Shedlock | Sun, Jul 3, 2016
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Now that the Brexit vote is over the IMF radically changed its tune.

Ahead of the vote IMF head Christine spoke of a "prolonged period of uncertainty." Now the IMF sings praises of opportunities to come.

Please consider Lagarde says Brexit will Give EU More Freedom for Reform.

Christine Lagarde, the head of International Monetary Fund, has expressed optimism that Europe will emerge from the Brexit crisis "on top", saying Britain's exit from the EU could leave the bloc with more freedom to implement decisions.

Ms Lagarde suggested the UK's vote last month to leave the EU left European leaders with greater flexibility to carry out reforms and move ahead with projects the UK had previously opposed.

"I have heard European commissioners, one after the other, say, 'this is so complicated, we can't do it because of the British'," she said. "Maybe there are things that one should consider doing now that the British aren't going to be sitting at the table."

"I believe Europeans will come out of Brexit on top," she added

The IMF has previously warned that Brexit could trigger a "prolonged period of uncertainty," and called on the UK and EU to work towards a "smooth and predictable transition".


Freedom to Reform

Hooray, with those nasty British out of the way, at long last the EU is free to reform.

They can start by booting Jean-Clause Juncker and scrapping thousands of nannycrat rules.

But let's stop pretending it was the UK holding back reform. It was Chancellor Angela Merkel on immigration rules and France on agricultural rules. Jean-Claude Juncker wants a United States of Europe, complete with its own army.

On June 30,I noted Four Countries Blame Jean-Claude Juncker for Brexit, Two Seek His Ouster.


Key Ideas

Christine Lagarde

Certainly, getting rid of Juncker constitutes reform, but somehow I doubt that is what Largarde had in mind.

And note Poland's deputy prime minister Mateusz Morawiecki called the UK a "voice of reason."

Apparently, now the the "voice of reason" is gone, the EU can reform.

Lagarde is more delusional than ever.

 


 

Mike Shedlock

Author: Mike Shedlock

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Mike Shedlock

Michael "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Visit http://www.sitkapacific.com/ to learn more about wealth management for investors seeking strong performance with low volatility.

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