Boris Johnson will be an impotent Prime Minister – but his impotency is his not-so-secret weapon, says the CEO of one of the world’s largest independent financial advisory organizations.
The comments from Nigel Green follow the confirmation of Mr Johnson as next British Prime Minister and as the pound falls to three-day lows against the dollar amid fears he will pursue no-deal Brexit.
Mr Green affirms: “Boris Johnson will be an impotent Prime Minister. Theresa May faced tricky arithmetic in parliament, but her successor will have it even harder.
“After a series of defections from serving politicians and the potential loss of two seats in special elections, the ruling Conservatives’ parliamentary tiny majority is on the brink of collapse.
“This arithmetic, together with the fact that the EU has shot down Mr Johnson’s Brexit plan within moments of his appointment as leader - signalling it has no plans to make concessions - makes the job of leaving the European Union with a deal almost impossible. No-deal is looking increasingly likely.”
He continues: “Yet this impotency is likely to be Boris Johnson’s secret weapon.
“This is because all he has to do is do nothing to ensure a no-deal happens by default on 31 October. Then in early November, he will call an election being able to claim to have delivered Brexit. This will secure him votes from right-wing Conservatives and Brexit Party supporters, he will be capitalising on an opposition Labour Party with low poll ratings for its leader, and making Liberal Democrat opposition to Brexit and their call for a second referendum irrelevant as the UK would have already left the EU.”
He goes on to add: “Mr Johnson’s impotency, which is fuelling a looming hard break from the EU, will not only work politically, but if it goes to plan, it could also work economically for the UK.
“Whilst it is a huge gamble – and one he seems willing to embrace - a quicker and cleaner exit from the EU could indeed deliver an unexpected boost for the pound and the UK economy as international and domestic investors get the clarity they crave before stepping off the sidelines and investing in Britain.”
Earlier today, the deVere CEO noted: “The surprise could be that a clarity of purpose of a Johnson administration on the overriding issue of the day – Brexit – could well give the pound a lift.
“The importance of clarity for the markets and business should not be underrated. It now just remains to be seen if the former London Mayor and foreign secretary delivers on what he has said– or whether there will simply be more Boris bluster, which would sink the pound further and kill-off investment hopes.”
Mr Green concludes: “It looks set that impotency will define Boris Johnson’s premiership in the short to medium term. But being the impotent Prime Minister could suit him very well politically – and economically if his gamble pays off.”
About deVere Group
deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of more than 70 offices across the world, over 80,000 clients and $12bn under advisement.