Europe’s Biggest Investor: Brexit Good for EU

allianz+brexit

Mohamed El-Erian was CEO of Pimco, a legend in the investing world who is now the Chief Economic Adviser to Allianz, the world’s largest insurance and financial services group which is also the largest company in Europe according to Forbes. He has just told a conference of money managers at the FundForum International in Berlin that a Brexit could resolve key issues within the EU.

“There are two fundamental divisions of the EU: There’s the British view — that it’s a super free-trade zone, that it’s a destination. Whereas the Germany-France view is that it’s a means to something else — to an ever closer union. These are fundamentally two very different views on what the EU is about. If the referendum [results in the U.K. remaining in the union], we don’t resolve these different views. It means we are going to have tensions over and over again, because they are pursuing two different objectives, within one institutional agreement. So, ironically, over the longer term, an exit may actually solve one of the basic inconsistencies of the European Union.”

His argument is that Brexit essentially secures the future of the EU, at short-term volatility cost. No one got rich betting against Mohamed El-Erian…




Tip offs: 0709 284 0531
team@Order-order.com

Quote of the Day

Philip Hammond uses a trip to Berlin to mock the Foreign Secretary:

“A compromise is the art of dividing a cake in such a way that everyone believes he has the biggest piece. Wise words with some applicability to the Brexit negotiations although I try to discourage talk of “cake” amongst my colleagues.”

Sponsors

Guidogram: Sign up

Subscribe to the most succinct 7 days a week daily email read by thousands of Westminster insiders.
Meltdown After Nuclear Power Plant Holds Bikini Contest to Choose Interns Meltdown After Nuclear Power Plant Holds Bikini Contest to Choose Interns
Sunday Shows Sunday Shows
The Economist’s Lack of Intelligence Unit The Economist’s Lack of Intelligence Unit
Happy Independence Day! Happy Independence Day!
Exporters Order Books at 29 Year High Exporters Order Books at 29 Year High
“Soft” and “Hard” Brexit Terms Obsolete “Soft” and “Hard” Brexit Terms Obsolete
Could Sinn Fein Make Corbyn PM? Could Sinn Fein Make Corbyn PM?
Russell Brand Has Endorsed Corbyn And The Tories Won’t Be Worried Russell Brand Has Endorsed Corbyn And The Tories Won’t Be Worried
Clegg Spinning Brexit Doom Report Clegg Spinning Brexit Doom Report
Taxpayers’ Alliance Updates Iconic Tory Poster Taxpayers’ Alliance Updates Iconic Tory Poster
Liar Clegg Brillo’d Liar Clegg Brillo’d
Just 22% Still Support Remain Just 22% Still Support Remain
McDonnell Denies Being Marxist McDonnell Denies Being Marxist