Facebooktwitterpinterestlinkedin

Brexit the economic repercussions of a leave win

As talks of the Brexit and the Brexit economic repercussions take center stage in almost every media, pub house, clubhouse and individual homes in the UK, it is only important to take a closer look at what leaving the EU means for the UK in terms of the economy. It is also important to try and understand the position of those campaigning for a leave. What makes it hard is the fact that there is no precedent when it comes to leaving the UK except that of Greenland. However, it would be hard to use Greenland as a point of reference given that it is still being controlled by Denmark which is still in the EU. According to Mr. Cameron, a leave vote will require the country to send an application to leave under the article 50 of the Lisbon treaty.

According to article 50 of the Lisbon treaty, the EU will negotiate a new agreement with the country that decides to leave. This new agreement will be for a period of two years although this can be extended by unanimous decision. Article 50 stipulates that all discussions for the new deal will be made without the participation of the country that has decided to leave. This is a tough one for the country that is leaving. How do you negotiate a deal when you are not allowed to participate? What this means for the UK is that if they were to leave, they would have to allow the EU to draw up a new agreement which may take as long as possible with no guarantees that the UK is going to be happy with what it gets since it has no say in what goes into the agreement. Actually, the Brits should not expect the other member countries to be soft on them when they decide to leave. Leaving will cause a lot of chaos in a Union that is already staggering.

Brexit economic repercussionsBrexit the economic repercussions of a leave win

There will be short term and long term effects of UK leaving the EU. The short term effects will mostly be felt almost immediately. The UK will most likely have an uncomfortable relationship with the rest of Europe. This will be bad for business as it will deter foreign investment in the country.  This is bad news for a country that is already working on a deficit. Already, the pound sterling has noticed a fall due to speculations on Brexit and fears on the country’s credit rating dropping. Brexit economic repercussions The long term effects will still be bad as economic growth will be stifled. According to an analysis made by the Bank of England, it was revealed that being part of the EU has greatly benefited the UK economy.

Brexit economic repercussions

The most important consideration to make is to consider how the UK will maintain its access to the EU’s single trade market. While this may not seem important on the surface, on a closer look it does since most of the UK’s exports ends up in the EU market. Even if the UK were to leave, they will still be expected to observe all the trade rules of the single market. It makes it harder when you are not a part of the EUpossibly leading to Brexit economic repercussions. This means the UK will still have to follow the EU trade rules even if they have no influence them.

Facebooktwitterpinterestlinkedin

Leave a Reply

Your email address will not be published. Required fields are marked *

Close