Financial Times Writers Emily Cadman and Shawn Donnan had imagined an end scenario wherein the United Kingdom had voted for an exit from the European Union.
While Vote Leave is rejoicing, the two writers believe that Europe would assert itself in the European Economic Area. Now, it is a European country that is not in the bloc. Along with others in the same market, it avoids being bound by agriculture, fisheries, judicial and foreign affairs policies. But it must cut through with unique deals.
Which might face difficulty. The two writers iterate that Europe may deliver a ‘hard bargain’ against a “Brexited” Britain when it comes to lowering tariffs and striking deals.
Despite having exited Europe, the United Kingdom still has to deal with European countries. But without its European Union leverage as it had in the past, it would mean huge penalties to the country if it were to leave.
While many say that the UK’s economic deficit to the EU would give it enough leverage, it isn’t enough to recompense the lost profits it could have by losing about half of the UK’s exports.
Britain’s services sector would also suffer. The financial markets would also face bigger challenges upon entry. About a tenth of the UK’s services industry the financial industry makes up. The lack of access to European Union markets, and even the absence of fluid passage as it does now, would hurt the country’s GDP.