It may damage our reputation with countries which stand to gain from bleeding our welfare and health systems dry. But they are countries who's people tend to offer us very little, so who cares?
Surely if we stop these spongers from coming here and hence reduce our welfare bill, wouldn't that be looked at favourably by credit rating agencies? I thought that a well a aged welfare budget was a positive in the eyes of these organisations.
No, it's about reliability. Walking out on the numerous treaties we've signed up to with the EU would have a terrible international effect and that's nothing to do with any countries "bleeding us".
It's the countries we need to sign trade deals with if we walk out of Europe that we need to trust us for such deals. And the EU wouldn't sign us up to EFTA if we walk out of the EU without notice. Don't forget that half our exports go to the EU but only a small fraction of the EU's exports go to the UK, so they can hold out as long as they like and insist we serve our notice.
Also we have to continuously borrow to service our national debt since we are in negative balance. After welshing on the EU agreement our rating would be sharply marked down and lenders would insist of the higher interest rates incurred as a result, making our debt position worse.
That's the system, and the international community are no more going to change it for us than the EU were going to drastically change EU rules to suit us.
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