UK election results eliminate uncertainty over Brexit

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ECB: UK election results eliminate uncertainty over Brexit
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The results of the UK elections are positive in the short term, as they eliminate the uncertainties surrounding the process of the United Kingdom's exit from the European Union, said Luis de Guindos, Vice President of the European Central Bank (ECB).

British Premier-in-Office Boris Johnson reiterated his pledge to achieve Brexit on January 31, following the crushing victory of the Conservative Party in Thursday's legislative elections. After three years of disagreements, "I will put an end to these absurdities and we will make Brexit on time by January 31, without 'if', without 'but', without 'maybe," Johnson said in front of his supporters in London.

On Friday morning, the pound appreciated significantly, reaching the highest level in May 2018 against the dollar and from July 2016 against the euro.

The slowdown in the eurozone has surpassed the critical moment, amid signs of stabilizing the region's economy, given that the scenario of a disorderly Brexit or a trade war between China and the US has not materialized, De Guindos added.
His statements come after ECB President Christine Lagarde estimated that the euro area economy would grow 1.1% in 2020, 0.1 percentage points lower than the central bank estimates (in September, after which it will accelerate to 1.4% in 2021 and 2022.

"The risks around growth prospects in the euro area, which are related to geopolitical factors, rising protectionism and emerging market vulnerabilities, remain downward, but have become less pronounced," said Christine Lagarde.

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