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…


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Quote of the Day

Ed Davey on who he would like to see lead a government of national unity

“Yvette Cooper for obvious reasons, she’s been very high-profile in cross-party work, and I’ve also mentioned Hilary Benn as chair of the Brexit Select Committee. But it would not be for me here to make that suggestion, it would be for others working cross-party. I think it probably has to be a Labour MP because most of the MPs supporting a Queen’s Speech would be Labour. Ultimately it’s a challenge to my Labour colleagues, many of who realise a no-deal Brexit would be deeply damaging to their constituents.”

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