OECD Warns of Damage to British Economy if Close Ties to EU Aren’t Maintained

The OECD has warned that the British economy faces long-term decline if it doesn’t maintain close ties to the European Union. It also said in a report that the British economy be boosted if the Government reversed its Brexit decision.

Angel Gurría, the Secretary General of the OECD, said in a speech:

“The UK’s preparation for Brexit in 2019 is creating big uncertainties, and will continue to weigh on the economy, at least until those uncertainties are resolved. It will be crucial that the UK and the EU maintain the closest economic relationship possible. This applies to the trade of goods and services, but also to the movement of labour, from which the UK has benefitted so much”.

The OECD added:

“The recent OECD economic survey recommends that the UK authorities secure the closest possible economic relationship with the European Union in its future trading arrangement. Rapidly concluding negotiations to guarantee the rights of EU citizens is a priority to sustain labour supply and ensure further progress in living standards. The United Kingdom should adopt simple criteria to deal with EU citizens living and/or working in the United Kingdom, which would minimise administrative burdens and avoid that some categories of EU citizens fall into the cracks, such as cross-border workers”.

A spokesperson for Theresa May, the Prime Minister, said:

“The OECD are a respected international body but what we should bear in mind is that it’s based on a no-deal situation, which is not what we are looking for. We are confident we are going to strike a good deal”.