Snapshot of Eurozone inflation falls to 5.5% in sharp contrast to UK. Economists put reason for divergence down to Brexit and Britain’s energy price guarantee.

  • sunbeam60@lemmy.one
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    1 year ago

    Not ignoring it. Of course there are other factors. But brexit is definitely a factor. Therefore: Brexit, the gift that keeps on giving.

    • emerty@feddit.uk
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      1 year ago

      Economists said most of the reason for the divergence between the UK and the EU was down to the UK government’s energy price guarantee (EPG), which has capped the cost of gas and electricity bills to the equivalent of £2,500 a year for a typical household until July. In the eurozone there have not been similar caps fixing the price over a lengthy time period, meaning their inflation rates better reflect the recent global decline in wholesale gas and electricity prices.

    • emerty@feddit.uk
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      1 year ago

      I work in agtech, brexit is a gift, it’s caused disruption that’s a great catalyst for investment in regenerative and vertical farming

      Problems are opportunities

      Wage growth is also high as a result of the labour squeeze that brexit is partially affecting

      • G4Z@feddit.uk
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        1 year ago

        That seems suitably vague.

        be specific, what can you do now that you couldn’t have done in the EU and why has that caused more investment that wouldn’t have happened anyway?

        • emerty@feddit.uk
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          1 year ago

          The CAP is an environmental disaster. The UK has now created its own agriculture policy that does not subsidise production. This was not possible whilst in the EU.

          • G4Z@feddit.uk
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            1 year ago

            So I suppose what you are saying is, now that the cost of food production has increased that’s made investments in these things more viable? Kind of sounds like some significant downsides for the other part of that equation. Not quite a Brexit benefit for the rest of us, just those in a specific VC funded R+D company.

            I also think… those investments could have still happened in the EU tbh, could and maybe should have been government funded research anyway, considering there is at least one large vertical farm company in Germany.

            Not really buying that as a benefit myself, but at least it is arguable!

            • emerty@feddit.uk
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              1 year ago

              No, the disruption to supply chains from covid and brexit have driven investment decisions to grow more in the UK and to use tech to replace low skill labour that wasn’t possible with FOM providing serfs to grub about in the dirt. Cheap labour is a barrier to tech. Modern slavery is a big issue in farming

              The CAP was designed to deliver cheap food during conflict, it’s failed at the first real test.

              The CAP takes the largest slice of the EU budget and the ‘modern’ farming it encourages have destroyed biodiversity and soil

              Policy to fix this has failed miserably to the tune of our entire net contribution to the budget of 66b

              https://www.arc2020.eu/cap-billions-spent-on-biodiversity-with-little-impact-auditors/

              • G4Z@feddit.uk
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                1 year ago

                No, the disruption to supply chains from covid and brexit have driven investment decisions to grow more in the UK and to use tech to replace low skill labour that wasn’t possible with FOM providing serfs to grub about in the dirt. Cheap labour is a barrier to tech. Modern slavery is a big issue in farming

                I agree, modern slavery is an issue as is paying these workers too little these are really domestic problems though which we still have thanks to the government farm worker visa scheme importing them from the RoW anyway. Germany and Finland both have FoM and they have 2 of the top vertical farm companies (one of them even has a project in Bedford apparently. So I don’t really see how they can do it in the EU, and somehow we couldn’t?

                The CAP was designed to deliver cheap food during conflict, it’s failed at the first real test.

                It was designed to ensure food security and nobody has gone hungry so that’s not really true is it.

                The CAP takes the largest slice of the EU budget and the ‘modern’ farming it encourages have destroyed biodiversity and soil

                Natural resources including CAP, CFP and any other rural and environmental measures so that’s not really true either is it? Also, even if you do include all that, it comes second to Growth projects (38% vs 47.01%)

                Policy to fix this has failed miserably to the tune of our entire net contribution to the budget of 66b

                Hasn;t Brexit already cost more than our total contributions over 47 years? We were close to that according to Forbes 3 years ago.

                https://www.forbes.com/sites/niallmccarthy/2020/01/21/brexit-costs-close-to-matching-britains-total-eu-contributions-infographic/

                So we’ve spent multiple times more than EU contributions would have been for the last few years to fix nothing, and stimulate an industry that is apparently already thriving within the EU.

                Doesn’t sound like a Brexit benefit to me, it’s just loss after loss.

                • emerty@feddit.uk
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                  1 year ago

                  Infarm’s farm went bust.

                  Hasn;t Brexit already cost more than our total contributions over 47 years?

                  No

                  Even by the measure that the OBR states, GDP per capita, UK was 2nd in Europe in 2016 and is still 2nd in 2022. The economic impact has been massively overstated.

                  https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=GB-XC&start=2016

                  Investment may have been delayed, but that’s just delayed. There’s plenty of money looking at undervalued UK companies in deeptech and fintech

                  • G4Z@feddit.uk
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                    1 year ago

                    No

                    What on earth do you mean ‘No’.

                    Even by the measure that the OBR states, GDP per capita, UK was 2nd in Europe in 2016 and is still 2nd in 2022. The economic impact has been massively overstated.

                    What’s that got to do with what I asked you?

                    I’m talking about a figure that’s been spent/lost or not earned due to Brexit, and the OBR puts it at well over 200 billion now. Which is more than we ever spent on the EU in total over 47 years. Just a fact mate.

                    Investment may have been delayed, but that’s just delayed. There’s plenty of money looking at undervalued UK companies in deeptech and fintech

                    Or maybe, investment would have been even higher in the EU and we might have some of the top vert farm companies, like Germany and Finland does eh?

                    I really don’t think you’ve demonstrated at all that Brexit has benefitted the vertical farm industry like you said it has.

                    Simply, no Brexit benefits here, as per usual when you scratch the claim even slightly.

      • sunbeam60@lemmy.one
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        1 year ago

        I’m happy to hear of a positive side effect of brexit. I’m not going to lie, I think it’s the first.