According to Prime Minister Theresa May’s election in Great Britain, a London financial expert sees opportunities for a change in tax policy and thus for more economic growth.
“If the Conservatives loosen the fiscal policy somewhat, the economy would do very well,” said James Athey, senior investment manager at the Aberdeen Asset Management. This would help to significantly reduce the expected headwind.
Conservatives headed by May would have to move politically to the left. Athey pointed to the campaign of May’s challenger, Jeremy Corbyn, of the Labor Party, who had spotted expansive fiscal policies especially among young people.
“Political uncertainty will not affect consumers at all, and the effect on the economy will be very low,” said Athey. At the same time, however, he emphasized that May must quickly establish a government capable of action. Because there were risks. The pound remains affected by lighter volatility, “until the political agenda appears.” The price of the British currency fell sharply after the initial US dollar forecasts, but stabilized later. But if the pound were to break even more, prices would also rise and consumers would be burdened.
The strong global economy with good economic data in the US and in the euro zone, however, is of the British economy, said Athey. “There is a great supporting environment that will help the British economy continue.” It is also important that the negotiations with the EU on Brexit should be taken quickly and not postponed.
Critically the expert sees the role of May: “It is clearly weakened. She has to analyze the message of the electorate carefully and align her policy with it. “The Conservatives would not drop at the moment May, Athey said. “In a new power struggle around the party point and a possible re-election, there is a danger that the Tories will be regarded as unseemly, disorganized and disputed.” It is best for the party to gather around May.
Mays conservative party had targeted the new elections to expand their absolute majority in the British Parliament and to enter the tough Brexit negotiations with a robust mandate. Instead, however, the party had lost its majority and was now seeking a coalition government with the Northern Irish DUP. The election result is considered a blow for May, who had taken office after the Brexit vote in June 2016.