Saturday, 28 May 2016

Cameron and Osborne should stick to known facts and rigorous analysis refers.

The biggest danger to occupational pensions comes from the idea that Saj Javid is floating, that trustees be given the power to change the nature of indexation. This will be a threat whether we are in or out of the EU, just as house prices depend almost wholly on UK government policy. As to state pensions, no government is going to upset the sector of the population which consistently votes in higher numbers than any other.

Rather than exaggerate possible scenarios, Cameron and Osborne should point to sober analysis by respected independent bodies like the IFS.

There is also real evidence of the difficulty of withdrawing from free labour movement agreements while continuing to trade with the EU. Switzerland's troubles, outlined in an April 2015 article, continue. Brexiteers claim that Great Britain is strong enough to survive outside the EU and without formal trade agreements other than adherence to World Trade Organisation rules. Switzerland, with her habitual current account surpluses and a debt to GDP ratio just over a third of the UK's clearly has a stronger economy, yet her government does not want to jeopardise her treaties with the EU and the EU in turn is adamant that they are dependent on free movement.

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