UK Business Under Pressure Regardless of Election’s Outcome

Britain has just kicked off five weeks of campaigning in an election that presents a scary choice for business.

Both of the parties most likely to lead the next U.K. government have policies that worry entrepreneurs and senior executives. And opinion polls suggest the outcome of the vote on May 7 is highly unpredictable.

If the center-right Conservative Party is re-elected, it will hold a referendum that could trigger Britain’s exit — or Brexit — from the European Union.

If the center-left Labour Party wins, it will raise some taxes and regulate some industries more tightly.

“A soothing outcome for markets is hard to imagine,” noted BlackRock in its election preview. “Labour would be tough on business — and might be perceived as lacking fiscal responsibility. [Conservatives] would pave the way for an unsettling referendum in 2017.”

Britain has one of the fastest growing economies in the world, and is creating jobs at a record pace. So why isn’t business more relaxed about the outcome?

via CNN

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza