Beware guarantees given in panic

Posted on

In 2008 the Irish government guaranteed all the liabilities of banks domiciled in that country. It was a moment of madness that both set a precedent and cost the country very dear.

Last week the UK government appeared to guarantee Nissan that it would not suffer any costs as a result of Brexit. The offer was made in a state of panic. It revealed a lack of conviction in stated policy on Brexit. And it set a precedent.

Unless we stay in the single market his could prove to be phenomenally expensive as it rolls from company to company, industry to industry and all at cost to the people of the UK, who will be transferring their wealth in the process to multinational corporations, which was the exact opposite of what Brexit was meant to achieve.

Beware government guarantees given in a state of panic.