Brexit a ‘serious risk’ to global growth: G7

Brexit a ‘serious risk’ to global growth: G7

The G7 united behind Cameron’s call to “Bremain”. Source: Wikimedia

The G7 leaders in Japan have released a joint declaration warning that the UK leaving the EU would be a threat to the global economy.

Prime Minister David Cameron is likely to use the statement heavily ahead of the June 23 vote. The G7 joins the International Monetary Fund, the Bank of England, the Treasury, the OECD and the Institute for Fiscal Studies (IFS) in warning that Brexit would hurt growth. The G7’s 32-page warning also mentions non-economic threats, including geopolitical conflicts, terrorism and the refugee crisis.

The G7 said: “A UK exit from the EU would reverse the trend towards greater global trade and investment, and the jobs they create and is a further serious risk to growth.”

The economy, trade, counter-terrorism and sanctions on Russia dominated the talks. German chancellor Angela Merkel said: “It was no subject here. But there was the signal that all who sat here want Britain to stay part of the EU.”

Cameron denied being a “closet Brexiteer” while speaking at the end of the summit, he denied a claim by his former adviser Steve Hilton that his natural instinct was to vote Brexit. I am not a closet anything. I have pretty much had the same view about Europe ever since I got involved in active politics,” Cameron said. “I have always taken the same view, which is that we are better off in this organisation but we should be aiming to reform this organisation, we should be looking to enhance the special status that Britain has. I have never been a closet Brexiteer. I am absolutely passionate about getting the right result, getting this reform in Europe and remaining part of it. It’s in Britain’s national interest.”

The Brexit campaign has dismissed such concerns, warnings and research as scaremongering. A spokesperson for Vote Leave this week described the independent IFS think-tank as the “paid-up propaganda arms of Brussels”.

The issue of steel production was also mentioned at the G7 summit, with a warning that “global excess capacity” was having a global impact to be “urgently addressed through the elimination of market-distorting measures”. It comes as the fate of Port Talbot and other UK steelworks remains unknown.

The G7 declaration was meant to warn Beijing against dumping, although it did not suggest firm action.

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