BORIS JOHNSON has been handed a three-point blueprint that the Treasury can put into action in a move that could firmly cement the UK’s economic lead over the European Union.
Experts from the London School of Economics, Anamika Ahir and Kevin R. James, have written a blog article titled ‘Rebooting UK financial regulation for the post-Brexit world’ on the research university’s website.They claimed that in order for Brexit to succeed, the UK government “must exploit the legal and, more importantly, intellectual freedom that comes with being free of the European Union policymaking machine to devise new policies that will provide the foundation for a more dynamic, innovative, and prosperous economy in the future.”
The Treasury is currently engaged in a far-reaching review of the current financial regulatory framework, illustrating the critical role financial markets will play in the success of the UK’s post-Brexit economy.
The experts recommend that the Treasury seek three essential reforms to the current system: “First, give regulators a new goal: make financial markets functional from a real-world perspective.”
“Second, require regulators to implement an informationally consistent regime—that is: i) regulators must commit to collect and analyse the information that the regime they put into place demands; and ii) the regime must be designed to work effectively given the limited information that regulators can in practice collect and analyse.
“Third, to ensure that these changes occur, create new accountability systems and international engagement practices. Take a look at each aspect of the reform package program in turn.”
The three-point plan comes after new data suggested the UK will rebound faster from the Covid pandemic than the eurozone in another major boost to Brexit Britain.
According to a study by EY, the UK economy is growing at its fastest pace in 80 years and might recover to pre-pandemic levels by the end of 2021, with GDP reaching 7.6%.
Separately, the International Monetary Fund (IMF) recently announced that the UK economy is expected to grow by 7% this year, compared to 5.8% for the Eurozone.
In addition, data from the European Central Bank (ECB) warned the eurozone economy would grow by just 4.6 percent before the end of the year.
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