The political crisis in the United Kingdom

The British Prime Minister He announced yesterday that he will resign from his post after significantly losing the support of his ministers and most conservative lawmakers, but said he will remain in charge of the government until his successor is chosen, a process that could take weeks or even months. His resignation deepens the uncertainty hanging over the British economy, as expectations point to it entering a recession.

Inflation is at a 40-year high of 9.1% and the Bank of England believes it could reach 11% by the end of the year. Currently Bank of England In a dilemma about raising interest rates and not harming economic activity. An additional rise of 25 basis points is expected at the August 4th meeting. In the UK’s relations with European UnionThe Prime Minister is at odds and wants to review the agreements After Britain leaves the European Union Signed in 2019.

Whoever succeeds the current prime minister will have to make important decisions on taxation and spending to counteract the risks of a recession, and try to contain inflationary pressures. When he resigned last Tuesday Minister of FinanceHe said he disagrees with the prime minister, who has long pushed for more tax cuts. Prior to the resignation, the chancellor’s priority was to reduce Britain’s debt burden, which exceeds 102% of GDP. Now a new phase of political uncertainty opens, as early elections scheduled for 2024 cannot be ruled out.

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