EEF Warns that Brexit Will Lead to Uncertainty and Risk
EEF, the association of British manufacturers warned that Brexit will bring U.K. to uncertainty and risk. Meanwhile, poundsterling and British stock market continues to be under pressure as uncertainty over U.K. to exit EU continues.
EEF was one of the oldest manufacturer organization in the world. Established in 1896 as Engineering Employers' Federation, the federation was formed to unite companies in enginering. In 1918, National Employers Federation was integrated into EEF to become the largest organisations for manufacturing companies.
As many of big industries and corporations in the U.K. has raised their concern regarding growing possibility of United Kingdom to leave the European Union, EFF also took a stance. The chairman of the manufacturers organization will urge political leaders to campaign in staying in the EU.
Chairman of EEF Martin Temple told The Guardian, "The great risk of leaving is that our country would be economically poorer. Being in the EU gives us certainty, whereas those who argue we should leave can only offer uncertainty and risk with few, if any, real tangible benefits."
He also criticized the politicians who used the issue to boost their popularity. He said, "The EU is a useful whipping post for populists but the facts of our economic lives in Britain are European. The job of our elected politicians is to commit themselves to using the power and influence they have to make it work better, rather than make excuses about the limitations they face, and simply giving up and taking us out into an abyss of uncertainty and risk."
As part of the European Union Referendum Act 2015, people in the U.K. will vote in June to decide whether the country should stay in the EU or leaving the union. The nations are bitterly decided over the issue, while there are many people still undecided.
Previously on Monday, one third of companies listed on the FTSE 100 index have signed letter to denounce Brexit, as a response to London Mayor Boris Johnson's decision to support Brexit on Sunday. His announcement was soon followed by a more than 2% drop to poundsterling against dollar as USA Today reported. Agitation of the Brexit possibility has driven the currency to its lowest level in seven years.
In the stock market, UK property stocks plunge as concern about leaving the EU will impact the demand from foreign buyers. Analysts also cited uncertainty over referendum will also upset other sectors in British stock market. European Equities Fund Manager at Royal London Asset Management Andrea Williams told Reuters, "A Brexit would be worse for the UK than for Europe."
Although the referendum is still months away, but the debate over Brexit has affected the market, as currency and stock price is affected. Following other companies, manufacturers' organization EEF has also stated its position to denounce Brexit and support U.K. to stay in the EU.