According to recent findings by Deloitte, CFOs are blaming business uncertainty on the euro crisis.
“A fog of uncertainty has descended on the corporate sector”, says Ian Stewart, Deloitte chief economist. “Perceptions of financial and economic uncertainty are back to levels last seen in early 2013 as the euro crisis abated”.
A Deloitte survey found that 83 per cent of CFOs now see the level of uncertainty facing their business as ‘above normal, high or very high’ – the worst reading for three years.
“This is due to there being a period of prolonged uncertainty about the tax regulatory, legal and trading relationships in the even of a Brexit” Steward added. “We’ve seen in the last ten years that this kind of uncertainty can be associated with a drying-up of liquidity, volatility in the financial markets, a decline in risk appetite and a decline in the value of assets”.
Of the 120 UK CFOs questioned by Deloitte, 75 per cent believed a Brexit would be detrimental for UK firms. Just 8 percent answered that a UK companies would benefit from leaving the EU.