Brexit ‘has been a success’ says Lee Anderson
According to the most recent reports published by venture capital companies, Europe has seen a surge in investments in high tech industries this year. But as EU expert Wolfgang Munchau noticed, Europe only managed to be on par with the US for the first time thanks to Brexit Britain’s performance.
The Director of Eurointelligence wrote: “So far this year, $100bn has been deployed in Europe this year alone, a 10-fold increase from 2015.
“The total number of unicorn has grown from 223 to 321, according to a report by Atomico, a venture capital company.
“As the reports noted, Europe now has the strongest startup pipeline ever, now on par with the US for the first time.
“Europe, including the UK, now accounts for 33 percent of venture capital invested globally in investment of up to $5m: the early stage start-ups.
“Since we know already that Europe slept through the first stages of the digital revolution, these latest data for the small scale starts-up are encouraging because these are the likely big businesses of tomorrow.
Brexit news: UK is the number one country in Europe for venture capital investments
“The unicorn in the room is that these data lump the UK and the EU together, which hides the underlying picture of the UK as the leader, with a wedge that continues to widen.
“Germany, Spain, and the Netherlands have two cities each among the top 20, the UK has five. Europe’s top city is London.
“The capital invested in London is almost three times as much as that of the next placed city, Berlin.
“Post-Brexit UK had a massively successful year.
“The gap between the UK and Germany has widened since Brexit.”
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He added: “We have been arguing that Brexit will ultimately be good for high tech companies, especially high tech service providers, because the UK will be able to give itself a tailor-made regulatory systems for this new industry.
“This will require deviations from EU regulation in several fields, including data protection.
“The UK benefits massively from the presence of the City of London, and from the fintech sector as an important source of technical innovation.”
The reports come as the EU is moving to introduce new plans to retaliate against countries that put economic pressure on EU members to change their policies, while stressing the main purpose was deterrent.
The proposal is designed to counter an increased spillover of geopolitical tensions into trade. European Union member states have accused the administration of former US President Donald Trump and China of using trade as a political tool.
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Brexit news: London remains number one city in Europe for investments
European Commissioner for Trade Valdis Dombrovskis said in a statement: “At a time of rising geopolitical tensions, trade is increasingly being weaponised and the EU and its member states becoming targets of economic intimidation. We need the proper tools to respond.
“With this proposal we are sending a clear message that the EU will stand firm in defending its interests.”
On hearing a complaint, the Commission would need to determine whether a third country’s economic measure was designed to coerce the EU or one of its members to change policy.
A current pre-occupation is the economic pressure Lithuania is facing after letting Taiwan set up a de facto embassy there.
China downgraded diplomatic relations with the small Baltic state and officials there say Beijing has also imposed blocks on its exports and pressured companies in third countries not to do business with it.
After establishing economic coercion, the Commission would seek to negotiate with the third country or seek mediation or cooperation from other partners before taking action.
The Commission would then have a wide range of counter-measures at its disposal, including tariffs on goods or services, withholding EU funding, or restrictions on access to EU procurement tenders or to research programmes.
The counter-measures should be proportionate and designed both to lead to the third country halting its initial measures and to cause the least damage to the EU economy.
It would add to an armoury of trade measures that include screening of foreign investment, limits on firms benefiting from foreign subsidies and curbs on public procurement for businesses of countries that do not open up their markets.