George Soros, the billionaire who earned recognition by betting against the pound in 1992, said Britain is nearing a tipping point that would see the economy sluggish to such an extent that Brexit might be repealed.
“The moment of truth is fast approaching,” Soros’ statement in an article read.
“The fact is that Brexit is a lose-lose proposition, harmful both to Britain and the European Union. It cannot be undone, but people can change their minds,” he added.
Rising prices and slowing wage growth serves a difficulty for the Bank of England and its policymakers, three of which voted last week to increase interest rates to head off the speedup of inflation.
Soros said the Bank had miscalculated the impact of inflation and is now catching up.
“Households will realize that their living standards are falling and they will have to adjust their spending habits,” Soros said.
“To make matters worse, they will also realize that they have become over-indebted and they will have to pay back their debts,” he added.
Britain has less than 2 years to arrange the terms of the separation and the plans of the future alliance before it is due to leave in late March 2019. Both sides need the arrangement to keep trade flowing between the world’s biggest trading alliance and the fifth-largest global economy.
Soros said that if Theresa May wants to stay in power, she should change her approach and take account of young people who want to find well-paying jobs.
She should, Soros said, attempt to keep Britain in the EU’s single business as Britain tried to extract itself.
“The divorce process would take at least five years to complete, and during that time new elections would take place,” Soros said. “If all went well, the two parties may want to remarry even before they have divorced.”