The EU currently faces a multitude of problems on the continent. The refugee crisis has engulfed European politics for the last two years and the Italian banking crisis is yet to rear its ugly head again. The Eurozone's growth is weak and vulnerable to these issues. With Catalonia now on the verge of becoming an independent state, Brexit seems to be the most minor problem Brussels has to deal with, but it is the one issue they are dragging out to restore some credibility to this failed organisation.
Brussels intends to teach the UK a lesson
When Sir Howard Davies, the Chairman of the Royal Bank of Scotland, told Sky News' Sunday with Niall Paterson programme that the EU intends to delay these talks to persuade firms to relocate to European capitals and weaken London, he was absolutely right.
Brussels intends to teach the UK a lesson and the price to pay for achieving this aim is to destroy the City. They will manipulate Brexit to their advantage to warn other nations of the consequences of leaving the trading bloc by squeezing Britain's capital of its talent.
Their stubbornness is only causing increasing numbers of Brits to cancel their support for the EU. Even staunch Europhiles like Stanley Johnson have quit their lifelong loyalty to the European project. The Liberal Democrats suggest that a second referendum on the final deal both sides reach is necessary, but given all the games Brussels has been playing since June 23rd last year, it is likely the Leave side would win with a substantial majority next time round.
The EU is playing a dangerous game
The EU is playing a dangerous game. The British economy is vital to the trading bloc's survival. The UK has a trading deficit with the rest of Europe and many European businesses export far more to Britain than this country does to the continent. They hope that by draining the City of jobs it will aid the Eurozone's recovery and boost economic activity in some of its capitals.
This is counter-productive and it is ironic that Brussels feels by punishing the British, they will prevent a mass exodus of nations leaving the EU. Due to the factors mentioned earlier, they cannot afford a no deal scenario.
Equally, Sir Howard may be scaremongering. The Financial Times reported that investment in Britain has increased since the EU Referendum.
This is a sign of confidence in this country. Whatever jobs leave the UK, they will be easily replaced. It was clear prior to 2008 that Britain's economic activity depended too much on banks. Other firms will reap the rewards of businesses leaving. However, this is an outcome that should still be avoided if necessary.
Either way, the EU is using Brexit to distract itself from other issues. Stealing London jobs will only benefit them in the short-term. By the time the trading bloc starts to collapse, they will regret that decision to leave.
