United Kingdom

defensa

UK suggests to EU establishment of institution with fund to finance defence projects

BancaMarch | United Kingdom proposes to the European Union the creation of a supranational institution including a joint fund to finance defence projects. The document is an informal proposal drafted by the British Treasury. Next week, EU finance ministers and their counterparts from the UK and Norway will meet to discuss the financing of defence spending. In the British proposal, the purchased equipment would be recorded on the balance sheet…


Reino Unido economia

UK increases defence budget but cuts spending in face of lower growth prospects

BancaMarch | The budget watchdog cut GDP forecasts for 2025 to just +1%, down from an initial +2%. In a scenario of greater economic weakness and rising borrowing costs, the British finance minister, Rachel Reeves, updated the budget in the face of the threat of breaching fiscal rules. The debt markets seemed to welcome the emphasis on fiscal responsibility. The measures involve cuts of up to £14 billion by 2029-2030….


reinounido mercado laboral

Five Years of Brexit Without Economic Benefits

Crédito y Caución | The UK’s foreign trade remains scarce, and the main sectors of its economy are suffering from rising costs, more complex bureaucracy, and labour shortages. Five years ago, Brexit marked the beginning of a new era for Great Britain. The Trade and Cooperation Agreement introduced new regulatory barriers and customs controls with the European Union, but also the theoretical possibility of a British economy free to trade…


reinounido mercado laboral

UK to increase defence spending to 2.5% of GDP by 2027 with ‘ambition’ of raising it to 3% by 2029

Bankinter | The Prime Minister (Keir Starmer) announced that he will increase defence spending to 2.5% of GDP by 2027 with the ‘ambition’ of raising it to 3% by 2029 (vs. the current 2.3%). According to Starmer, the increased defence spending will not be financed by tax rises or increased debt, but rather by cutting ‘expenditure on overseas development’. Opinion of the Bankinter analysis team: Good news for the defence…


reino unido starmer

UK faces a gilt crisis

Juan Pedro Marín Arrese | The markets have been battering the UK gilts since Rachel Reeves delivered a disappointing budget in October. A sizeable increase in taxes but proving unable to fill the gap inherited from the last Conservative government did not seem like the best recipe to address the looming stagflation. Fears that ongoing deterioration might force the Chancellor to tap into taxpayers’ money again in a couple of…


Brexit bandera 777x400

EU calls on Labour government to deliver on Brexit deal

Banca March | Following the arrival in power of Labour’s Keir Starmer, the EU is once again demanding that the United Kingdom fully implement the Brexit agreement for Northern Ireland, as well as respecting the rights of EU citizens with a view to improving relations with its European partners. Thus, the EU’s list of demands to the UK includes the implementation of the agreement designed for Northern Ireland – permanence…


reino unido starmer

Labour’s victory in UK could further support pound and British stock market with more constructive stance towards EU

Renta 4 | In the UK, Thursday’s elections were, in line with expectations, a historic victory for Starmer-led Labour (expected to achieve its largest majority since 1997). The Conservative leader, Sunak has already conceded defeat. Labour’s victory could continue to support the pound and the British stock market in the face of a more constructive stance on the EU and promised fiscal stability. To this could be added the Bank…


KeirStarmer

Landslide win for Starmer’s Labour in UK election, ending 14 years of Conservative rule

The Labour Party has won the UK general election with an absolute majority, ending 14 years of Conservative ‘dominance’. Keir Starmer, the party’s leader and the country’s new prime minister, ousted Rishi Sunak with a landslide victory. With some constituencies still to be confirmed, the count already confirms Labour’s absolute majority (more than 326 seats) by securing more than 400 seats out of 650. The centre-left party is on track…


RSunak

Sunak, Young, Rich, Hindu And From Oxford

Fernando González Urbaneja | The new British Prime Minister is young (42), rich (almost a billion in assets), Hindu (family religion) and a graduate of Oxford and Stanford (Fulbright programme). He has been in Parliament for seven years and, after working for Goldman and several investment funds, he headed the Treasury (with Boris Johnson) before rising to become Minister of Finance. A dense professional career that is a credit to…


ejecutivos puente londres TC

United Kingdom, A Broken Democracy

Fernando González Urbaneja | Brexit was about regaining control; that was the decisive message that led disoriented citizens to vote in favour of leaving the European Union. Six years later, what they have achieved, rather than regaining control, is to achieve “decontrol”. Three prime ministers in the course of 2022 is an unimaginable outcome for those who have studied and praised British democracy as an exemplary model based on good…