It is a little slap in the face: Theresa May gives a speech in Florence about how the British want to shape the Brexit. Only hours later, Moody’s downgraded the country. The brexit will weaken Great Britain. US rating agency Moody’s has lowered its rating on the creditworthiness of the UK. The creditworthiness of the country is lowered from “Aa1” to “Aa2”, Moody’s announced on Friday. The outlook for the rating is “stable”.
According to Moody’s, it expects a higher budgetary deficit for Great Britain, as political and social pressures are growing after spending years of financial cuts.
Also, the exit of the country from the European Union would weaken the economic power of Britain, according to the rating agency. For the year 2018, Moody’s forecast an economic growth of one percent for Great Britain. This year it was still 1.5 percent.
Just a few hours earlier, Britain’s Prime Minister, Theresa May, had pleaded for a smooth withdrawal from the EU in a Brexit speech in Florence. According to her, the UK is ready to pay for the Brexit for two more years in the funds of the EU. After the formal end of the EU membership on 29 March 2019 there should be an approximately two-year transitional phase of Great Britain in the Internal Market, while London is ready to meet financial obligations, said May.
May also expressed her vision of a new deep and special relationship between the EU and Great Britain. However, Brussels wants to talk about future relations with the UK until “sufficient progress” has been achieved in important separation issues. This includes, in addition to the money dispute, the rights of around 3.2 million EU citizens in Great Britain and the question of how the new EU external border between the Republic of Ireland and British Northern Ireland could look.
EU foreigners are also to be allowed to settle in Great Britain during the Brexit transition period, May said. But there will be changes: “We will ask EU citizens to register.” This will be part of the new immigration rules which are to enter into force after the transitional phase.
This Monday, the fourth round of the talks starts. In a historic referendum held in June 2016, the British had expressed a clear majority in favor of withdrawing from the EU.