BT CEO Warns 'Hard Brexit' Would Hurt U.K. Economy

By Simon Zekaria

LONDON--BT Group PLC (BT.A.LN) Chief Executive Gavin Patterson on Thursday said uncertainty resulting from Britain's vote to leave the European Union will jeopardize investment across the country's telecommunications and media industry, and warned that a "hard Brexit" would worsen the U.K. economy.

"There is a high degree of uncertainty. We don't know what the future lies in terms of our relationship with Europe, and that over time is going to put investment at risk across the whole of the market," said Mr. Patterson. "The harder the Brexit the more damaging it is going to be for the U.K. economy."

At the start of October, Prime Minister Theresa May said she wanted to win British companies the "maximum freedom" to operate in the EU's tariff-free single market, but not if it meant relinquishing the right to curb immigration to the U.K. Analysts interpreted her comments as signaling a greater possibility of a "hard Brexit" for the U.K, based on the view that controlling immigration was a higher priority than maintaining full access to the country's largest trading partner.

Still, last week, Mrs. May, while holding her position on immigration, signaled a firmer determination for U.K. businesses to have the broadest possible access to the single market.

Mr. Patterson said BT prioritizes unfettered trading access in Europe.

"What we really want is as much access to those 500 million customers in the single market as we possibly can," he said.

Write to Simon Zekaria at [e-mail]

(END) Dow Jones Newswires

October 27, 2016 04:33 ET (08:33 GMT)

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