Economy
A decade on: Brexit blamed as UK economy struggles to find footing
Simon Boyd runs a company on England’s south coast that manufactures prefabricated steel structures and exports them to destinations as far as Ghana and Barbados. Meanwhile, Mike Hawes leads the Society of Motor Manufacturers and Traders, representing the interests of the U.K.’s automotive industry.
The business leaders were on different sides of the debate when Britain voted to leave the European Union in 2016. But 10 years later, they are both frustrated by Brexit.
A decade ago, backers promised that Brexit would be the key to a bright new future in which, freed from the edicts of EU bureaucrats, Britain would regain control of its laws and borders, and the economy would boom. But the reality failed to live up to the hype as Britain struggled to adjust to life without unfettered access to the 27-nation free trade bloc and its market of 450 million people.
Economic growth is anemic, taxes are high, public services are creaking and successive governments have been unable to stem the flow of migrants who wash up on the English Channel coast in inflatable boats. As a result, it’s not exactly a happy anniversary.
“No, it’s not delivered everything that was said it would deliver on the tin, but it is delivering,” Boyd told The Associated Press (AP). “It’s very sluggish. You only need to look at the statistics to see that.”
Boyd, the managing director of REIDSteel, which employs about 130 people at a plant in Christchurch, England, still stands behind his decision to support Brexit, but blames lackluster results on politicians who weren’t committed to delivering.
Britain has also experienced unexpected challenges over the past 10 years, from the COVID-19 pandemic to the wars in Ukraine and the Middle East, Boyd said.
The Brexit vote quickly increased costs for businesses as they prepared for an uncertain future during years of negotiation over the U.K.’s new relationship with the EU. Then, when Britain finally left the bloc on Jan. 31, 2020, new rules governing trade in goods and services made it more expensive and time-consuming to do business with European partners.
Creon Butler, who leads the global economy and finance program at Chatham House, a London-based think tank, said there were long-term consequences to leaving the European single market.
“Whatever was promised, whatever one hoped for, (you have) to accept that it has been a major loss of wealth and prosperity for us through the choice we made to leave,” he said.
“That’s a decision the British public have made, and they’re entitled to make it, but it does make us poorer,” he added.
By most measures, the British economy today is weaker than it would have been without Brexit, according to a recent report published by the National Bureau of Economic Research (NBER) in Cambridge, Massachusetts. The report, compiled by researchers in Britain, Germany and the U.S., compares the performance of the U.K. economy to 33 other countries, including its European neighbors, the U.S., Canada and Japan.
Brexit has reduced Britain’s gross domestic product (GDP), a broad measure of economic output, by 6% to 8%, investment by 12% to 13%, and productivity by 3% to 4%, the researchers concluded.
Britain’s carmakers were early and outspoken opponents of Brexit, arguing that increased red tape surrounding shipments of parts and finished vehicles would damage an industry built on a network of interlinked factories in multiple European countries.
Those concerns reduced investment in the U.K. auto industry because international carmakers were less likely to see Britain as an attractive way into the European market. As a result, the industry is hoping that international trade deals will help boost demand for its products.
“We have been able to move with the times, so to speak, but undoubtedly it’s putting us at more cost into the industry, more pressure,” Hawes said.
Brexit supporters trumpeted the freedom to negotiate its own trade agreements as one of the primary benefits of leaving the EU, and Britain has since signed dozens of deals with countries ranging from Australia to India to the United States.
But EU countries still account for 41% of Britain’s exports and half its imports, according to the latest government figures.
During more than 50 years as a member of the EU and its predecessors, many British businesses also came to rely on Europe as a source of cheap labor, especially after the bloc’s eastward expansion in 2004.
That pipeline dried up after Brexit ended the free movement of labor, one of the bloc’s founding principles.
The owners of Britain’s curry restaurants, an integral part of communities from Aberdeen in Scotland to Aberystwyth in Wales, have been especially hard hit by the loss of Eastern European workers who went home rather than deal with burdensome new visa requirements. And they’re furious because the industry backed Brexit after assurances it would lead to more visas for South Asian cooks, something that hasn’t happened.
“We feel betrayed,” said Oli Khan, president of the Bangladesh Caterers Association UK, who serves up tandoori lamb chops, vegetable biryani and chili paneer at his restaurant in Stevenage, north of London.
In an effort to mitigate some of the problems caused by Brexit, Prime Minister Keir Starmer has begun talks with the EU about rebuilding a closer relationship as he seeks to energize the country’s stagnant economy.
Starmer’s move comes as a survey by the Ipsos polling firm, the Policy Institute at King’s College London and the think tank UK in a Changing Europe suggests that frustration with Brexit is growing.
The survey of 2,245 Britons aged 18 and older carried out in May found that 48% said Brexit was going worse than they expected, up from 28% in March 2021. Some 9% said it was going better than expected and about one in three said it was going as expected.
But Boyd said the most important survey is still the one that took place on June 23, 2016, when 51.9% of those who cast ballots – or 17.4 million people – voted to leave the EU.
He continues to believe that Britain has a brighter future outside the EU.
Brexit hasn’t delivered on its promise because politicians, large corporations and other entrenched interests worked to thwart the will of the people, Boyd said. This resulted in a Brexit deal that kept Britain too closely tied to the EU and unable to realize its potential as an entrepreneurial nation filled with creative, hardworking people, he said.
And there’s no going back, he said.
“Imagine if we were to rejoin … today. The conditions upon which we would be allowed back in would be akin to us re-boarding the Titanic on the condition that we surrender our life vests first,” he said. “Need I say any more?”
Households in Türkiye were less pessimistic in June as the consumer confidence rose to the highest level in just over three years, official data showed on Monday.
The consumer confidence index rose to 87.9 in June from 85.8 in May, according to the Turkish Statistical Institute (TurkStat).
Moreover, this was the highest reading since May 2023. Nonetheless, a score below 100 indicates a pessimistic outlook.
The financial situation expectation of households over the next year improved, with the corresponding index rising to 89.5 from 87.9. Similarly, the index measuring the general economic situation over the next twelve months improved to 83.9 from 81.4. The index measuring the financial situation of households at present increased to 72.3 from 69.2.
The survey revealed that the sub-index for assessment on spending money on durable goods over the next 12 months remained more positive and strengthened to 105.9 from 104.5.
China announced Monday it added MP Materials, USA Rare Earth, as well as eight other U.S. entities, which it claimed are linked to the U.S. military, to its export control list in retaliation for Washington placing several Chinese companies under restrictions this month.
Aveox, a motor manufacturer for mission-critical applications, was also among those placed on the list, which halts Chinese dual-use exports to the companies.
Pentagon-backed MP Materials, which operates the only active rare earth mine in the U.S., and USA Rare Earth are both involved in the mine-to-magnet supply chain.
The three U.S. companies were not available for comment outside of business hours.
The measures are a response to the “U.S. government’s malicious practice” and were taken to safeguard national security and interests, as well as to fulfil international obligations such as non-proliferation, China’s Commerce Ministry said in a statement on Monday.
“Organizations and individuals in any country or region are prohibited from transferring or supplying dual-use items originating in China to those entities,” it said, adding that export activities should be stopped immediately.
The move amounts to a full ban on dual-use exports to the named firms, tightening rules that previously only required export licences.
Analysts said, however, that China’s actions were a largely symbolic response to the Pentagon’s 1260H list of Chinese tech companies it believes to be aiding the Chinese military. The list was updated this month to include e-commerce giant Alibaba, internet search provider Baidu, and automakers BYD and NIO.
“Most of the companies are U.S. defense industry players, or they have close connections with the U.S. government… Those companies are not going to do business in China, so the impact will be quite symbolic,” said George Chen, partner for Greater China at the Asia Group, a geopolitical advisory firm.
“Beijing’s move today is a proportional response to the Department of War’s 1260H list.”
In a separate notice, China’s finance ministry said it has decided to take measures against 46 U.S. companies. Chinese buyers are now barred from procuring any products manufactured by them, though U.S.-funded enterprises operating in China can still do so.
The U.K. aims to double its trade volume with Türkiye in the coming years, a top British official said recently, stressing the growing cooperation in fields such as defense, but also the potential in other sectors.
“There is a trade volume of 28 billion pounds ($37.1 billion) every year between Türkiye and the United Kingdom, and we want to double this trade volume in the coming years,” said U.K. Minister of State for Trade Chris Bryant.
Speaking to Anadolu Agency (AA), Bryant said Europe could be thought of like the two ends of a book, noting that Türkiye and the U.K. are located at opposite ends of Europe and are highly important to each other as fellow NATO members.
Saying he believes there are many commonalities between Türkiye and Britain, Bryant cited strong music and cinema traditions as he touched upon trade figures and cooperation.
Bryant’s remarks came following a visit to Ankara, where, with his Turkish counterparts, he discussed how to advance economic partnership, bilateral trade, and also modernization of the free trade agreement (FTA).
“Both countries have strong defense sectors, and we are working to cooperate more closely in these areas,” he further said.
Moreover, he mentioned his visit to Ukraine earlier this year, where he said one of the bridges that had been destroyed has now been rebuilt using British steel produced in Scotland and British engineering, but that the construction was carried out by Turkish contractors.
“This is a really good example of partnership,” he said.
“Especially in challenging regions of the world, we often see how closely U.K. and Turkish companies can work together in the construction sector. This is exactly what we want to see in the future as well,” he added.
Yet, Bryant pointed out that there are still many sectors where trade between Türkiye and the U.K. remains below potential.
He said the services sector is one of the main areas.
“Education, design, advertising and many other fields are areas where we can do much more business together. These are also the issues I am currently discussing with Trade Minister Ömer Bolat and Deputy Trade Minister Mustafa Tuzcu,” he maintained.
“In the next few weeks, I will also travel to Azerbaijan and Kazakhstan. There are significant opportunities there as well, and I know that Turkish companies are already active in these regions,” he furthered.
“As I have said before, Türkiye and the U.K. have created a unique partnership. When we work together, we can move things forward in ways that some countries cannot,” Bryant said.
“I am quite confident that by the end of the year we will reach a much more comprehensive and advanced free trade agreement,” he added.
Bryant noted that in the past, free trade agreements focused more on trade in goods such as food, agricultural products, and furniture, but today areas such as technology, the digital economy, services, education, advertising, design, and construction have become just as important as these sectors.
“We aim to create a free trade agreement that is suited to the needs of modern economies,” he said.
Strengthening trade relations between Türkiye and South Korea and exploring venues for advancing the ties are likely to top the agenda of talks to be held in the Turkish capital this week, according to a report on Sunday.
The sixth meeting of the joint committee established under the free trade agreement (FTA) between Türkiye and South Korea is expected to begin on June 23, the report by Anadolu Agency (AA) said.
According to information obtained by AA, the two-day meeting, scheduled to take place in Ankara, is expected to address mutual investments and evaluate a forward-looking road map for achieving more balanced trade relations.
The two countries, however, are already deepening their commercial ties, particularly in strategic sectors such as nuclear energy, artificial intelligence, the defense industry and critical minerals.
South Korean President Lee Jae-myung visited Türkiye last November and high-level Turkish officials, including energy and foreign ministers, also visited Korea since.
During the South Korean president’s visit, Türkiye’s nuclear energy company, TÜNAŞ and South Korea’s power utility KEPCO had signed a memorandum of understanding (MoU) on nuclear energy cooperation.
South Korea, alongside Canada, has long been rumored to be one of the contenders for building a nuclear power plant in Türkiye.
Türkiye, which is expected to bring online its first nuclear power plant – built by Russia’s Rosatom – in the southern city of Mersin, is also planning to have two more plants, in northern Sinop province and its Thrace region.
Distant but important export market
Economic relations between Ankara and Seoul continue to develop on the basis of trade, investment and technological cooperation, alongside strong political ties dating back to the Korean War.
Trade relations, which gained a new dimension with the FTA signed in 2012 and implemented in 2013, have expanded in recent years across a range of sectors, from automotive and defense to energy and digital technologies.
Türkiye has recently prioritized the development of joint projects with South Korea in strategic areas including nuclear energy, artificial intelligence, semiconductors, battery technologies, critical minerals, innovation and renewable energy.
South Korea is also included in Türkiye’s “Far Countries Strategy,” which aims to boost exports to geographically distant but high-potential markets, and is listed among the country’s target export markets.
Bilateral trade reached $50.8 billion over 5 years
Bilateral trade between the two countries has grown steadily in recent years. According to data from the Turkish Statistical Institute (TurkStat), trade volume between Türkiye and South Korea totaled $50.8 billion during the five-year period from 2021 to 2025.
Bilateral trade reached $11.4 billion last year and amounted to $3.7 billion in the first four months of this year.
Türkiye’s main exports to South Korea include pharmaceutical products, metal ores, machinery and equipment, and seafood, while imports from South Korea are led by iron and steel, plastics and plastic products, and motor vehicles.
Strengthening investment ties with South Korea is also seen as crucial for building stable and long-term cooperation.
A total of 226 South Korean companies have investments in Türkiye worth approximately $451 million, including major firms such as Hyundai Motor Company and LG Electronics.
Cooperation deepens through concrete projects
In recent years, the two countries have continued to expand defense industry cooperation through various projects, particularly the Altay main battle tank program.
Talks with South Korean companies have also intensified regarding the planned second nuclear power plant project in Sinop.
Having previously collaborated on major infrastructure projects such as the 1915 Çanakkale Bridge and the Eurasia Tunnel, the two countries are further deepening cooperation through new highway and urban development protocols signed last year.
Meanwhile, a cooperation agreement signed between the Scientific and Technological Research Council of Türkiye (TÜBITAK) and the National Research Foundation of Korea (NRF) enables Turkish and South Korean researchers to develop and receive funding for joint scientific R&D projects focusing on artificial intelligence, advanced materials and digital technologies.
Ryanair CEO Michael O’Leary has extended his contract through 2032, the budget airline said on Friday, in a deal that includes a bonus scheme that could see the 65-year-old Irishman earn more than 150 million euros ($172 million).
Ryanair said last month that talks to extend O’Leary’s tenure to close to 40 years were almost concluded.
O’Leary has been the dominant force at the airline since taking over as CEO in 1994, transforming it from a small regional carrier to Europe’s largest by passenger numbers.
Subject to O’Leary remaining at the group until April 2032, he would be granted the option of buying 10 million shares at 26.70 euros per share if annual profit reached 4 billion euros or if the share price exceeded 42 euros for 28 successive days.
Ryanair last month posted a record full-year post-tax profit of 2.26 billion euros. Its share price stood at 25.70 euros at 1315 GMT, with the strike price in the agreement representing the prevailing market price before the Middle East conflict.
“Achievement of these very ambitious targets would create substantial additional value for all Ryanair shareholders,” the airline said in a statement.
O’Leary did not directly answer an analyst when asked last month if this extension would be his last. A previous share option scheme is set to earn him as much as €100 million after Ryanair hit a share price target in his last contract. O’Leary said the payout would be good value compared to the salaries of football stars.
The airline said O’Leary’s remuneration, comprising a “modest annual salary and a capped annual bonus”, will be tabled at September’s annual general meeting for shareholder approval.
Türkiye’s manufacturing capacity utilization rate increased further in June to the highest level in one year, while factory confidence remained more positive, figures from the central bank showed on Friday.
The capacity utilization rate rose to 74.5% in June from 74.2% in the previous month, the Central Bank of the Republic of Türkiye (CBRT) said.
That marks the highest level since June 2025.
The rise was mainly driven by increased utilization of investment goods, which rose to 73.4% from 70.3%. Meanwhile, capacity utilization for consumer goods weakened to 71.8% from 72.7%.
Separate data on Friday showed the confidence indicator for the manufacturing industry climbed to a four-month high of 103.5 in June from 103.3 in May.
Output expectations over the next three months brightened in June, with the corresponding index rising to 117.6 from 114.3.
The index measuring the current situation of the total amount of orders increased to 88.4 from 87.5. Data showed that the sub-index regarding the general business situation also improved somewhat from 90.4 to 90.9.
New Turkish bill aims to streamline lengthy judicial process
Indictment against 44 suspects for allegedly laundering illegal revenues through the payment company “Papel”
Consumer confidence in Türkiye rises to 3-year high in June
New Turkish bill aims to streamline lengthy judicial process
Indictment against 44 suspects for allegedly laundering illegal revenues through the payment company “Papel”
Consumer confidence in Türkiye rises to 3-year high in June
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