Cape Town – Economic commentator Chris Hart believes Brexit is the beginning of a global trend that will see the soaring levels of regulations and taxes being cut back as countries like the United Kingdom work towards being more attractive to investment.
Speaking at a workshop to unpack the impact the UK referendum that saw Britons voting to leave the European Union (EU), Hart believed the Brexit vote will force London to get its act together.
He explained that events such as Enron collapsing, the September 11 terror attacks and the 2008/9 financial crisis gave politicians the opportunity to significantly impose severe regulations on the world, which Hart said had an adverse impact on citizen’s ability to grow economically.
“Resources being sucked out to pay politicians and civil servant,” he said, adding that it caused systematic corruption increasing around the world, including Europe. “Regulation spawns corruption.”
“Brexit takes us to a different era,” he said. “It is the high point of over-taxation and over-regulation. It will now be a bear market for lawyers, sorry for that.
“Brexit brings in jurisdiction competition,” said Hart. “London is the financial centre of Europe and will now have to make themselves look more beautiful."
To do this, he said they will have to reduce taxes and regulations to make it look more attractive.
“The EU will have to respond and have more introspection. They will have to sell it to themselves again or they will have all the other EU countries exit," said Hart.