Potential Impacts On The European Economy Of The United Kingdom’S Exit

Potential impacts on the European economy of the United Kingdom’s exit

In a referendum held on June 23, 2016, the citizens of the United Kingdom voted in favor of the departure of the European Union country (EU). It constitutes an unprecedented fact, since it is the first time that a Member State decides to leave the EU.

The so -called "very exceptional British" constitutes a fundamental element to help understand the prejudices of the citizens of the United Kingdom with respect to continental Europe. Another structural domestic factor to explain the British decision to abandon the EU is the phenomenon of Euroscepticism, extremely extended in the country, specially in public opinion and finally, the third structural element, and intimately connected to the previous factor, refers to the ambivalent relationship of British governments with the European integration process.

On numerous occasions, the United Kingdom has been classified as the "strange in Europe" home of a nation of "reluctant Europeans", and placed in the "margins of integration from the political, geographical and emotional point of view".

According to the New York Times, the EU British output "weakens a block that is the largest market in the world, as well as an anchor of global democracy".1⁴ Anyway, some media are warning that the future scenario would not be as catastrophic as many rushed to predict.1⁵ Everything will depend on the results of the negotiations between the con-service government, now led by Theresa May, 1⁶ and the EU.

. The EU should also deal with a possible "domino effect" from the moment that Leaders of Epecheptic Extreme Right Parties in different Member States called to celebrate referendums about permanence in the EU.

The withdrawal of the United Kingdom of the European Union is a matter of maximum currentity that has sown uncertainties to scholars, because it is an object of unsuspected analysis until the announcement by the British Prime Minister of the realization of a referendum on this issue. The negotiations in which the future relationship between the organization and the State that does not want to continue participating in it will be articulated as a member will test the strength of the European Union.

These studies conclude that short-term uncertainty, just before and after the referendum on Brexit, will harm the British economy by ballasting trust, post-use investment decisions and generate strong financial volatility. In the medium term, financial volatility could have more serious consequences for the real economy, as the hardening of financial conditions and the fall in trust moves to the activity and economic agents face greater uncertainty (for example, in relation with trade standards). However, the longer term consequences will depend on the degree to which the commercial relations of the United Kingdom with the EU are permanently altered and if the United Kingdom is able to adopt compensatory measures.

The United Kingdom is a world power, in the present study it is intended to evaluate economic, social and even environmental damage/advantages for the EU. As well as to raise a scenario where the UK departure from the EU does not represent a major problem for this or for the economies of the integrating nations.

References

• Álvarez, m. V. (2016). The departure from the United Kingdom of the European Union: its structural causes.
•  Carbajosa, Ana (2016, June 24), "The British" British drives European Europhobes, "the country. Available at: https: // elpais.com/international/2016/06/24/news/1466747683_421802.HTML (Consultation: 09/13/2019).
•  Daddow, or. (2015). Interpreting the Outsider Tradition in British and European Policy Speeches from T Hatcher To C Cameron. JCMS: Journal of Common Market Studies, 53 (1), 71-88.
•  Torrecuadrada García-Lozano, S., & Garcia Fuente, P. (2017). What is Brexit? Origin and possible consequences. Mexican Yearbook of International Law, 17, 3-40.
•  Greenwood, n. (2016). United Kingdom Referendum on the permanence in the EU: consequences for British, EU and Spanish economies. Economic Information Notebooks, (252), 105-15.