It seems that the reality of Brexit is finally beginning to hit home; both the EU and IMF have started to understand that there will be serious consequences for the remaining European Union members if there is no satisfactory resolution to the Brexit negotiations.
While the EU's leaders have begun to panic about the potential effect of a disorderly Brexit, the IMF has attempted to quantify the possible impact. According to them, European economies could suffer an average 1.5 % reduction in GDP, although the Irish Republic could lose out to the extent of 4%. Even accepting that the IMF's history on such prognostications is poor, this is a new element in the Brexit saga.
Until now, little has been said about the potential effect of Brexit on other European economies and the emphasis has been heavily on the supposedly catastrophic impact on the economy of the UK - 'Project Fear' in full flow. Now it seems that 'Project Fear' has begun to spread to Germany, France, and the rest, especially Ireland; maybe now there will be a new realism from the EU negotiators and a withdrawal from their previous intransigent positions.
The UK has always been in a much stronger position than has been generally admitted - might that strength finally be becoming apparent ?
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