The economy grew by just 0.1% in the last quarter (HERE), about a sixth of the speed we were managing before the referendum and the weakest growth for five years. In 2016 we were at the top of the G7 growth league, now we're at the bottom - in spite of the European and world economies both being in far better shape that they were two years ago.
If the economy does continue to under perform, as many expect it will increase the pressure on the government to hold a referendum on the deal - and it will make it more likely they will lose.
To add to the problem, Barnier has said (HERE) the EU does not need The City:
“Some argue that the EU desperately needs the City of London, and that access to financing for EU27 business would be hampered – and economic growth undermined – without giving UK operators the same market access as today,” Barnier said at a meeting of finance ministers in Sofia, Bulgaria. “This is not what we hear from market participants, and it is not the analysis that we have made ourselves.”
For the government it is a bit like discovering the sweeties in your pocket, by which you hoped to control a particularly recalcitrant child, are actually useless. The child doesn't like them or want them and they will not have the impact you thought.
We were constantly told that cutting off access to our financial markets would be a threat that would make the EU more pliant. It appears they have carried out an analysis and decided they don't need us. We will be offered no better access than Wall Street has now.
And when you think about it, this is logical. How could the EU offer is better access without opening up the market to Wall Street as well?
The damage to our economy, if Brexit goes through, will be incalculable - certainly in the £trillions.
