Impact of BREXIT on E.

UK is the 5th largest economy in terms of the GDP (nominal) with 2.8 trillion $. It
is the 2nd in the European union. Largely the European economy is integrated. As
high as 45% of the total imports of Britain is to the member states of the
European Union.
For the first time in the history, EU will lose a member, eventually this will trigger
a chain of events for European Union. Euroskepticism will be strengthened in the
nations of European Union. As one of the survey conducted by
PewResearchCentre shows that the people in the member states of European
union doesnt like the EU handling the economy.

Fig1: Bar graph showing the Percentage of people in Member states of European
Union favour to EU handling of economy

Fig 2: Graph showing the views of the EU on the decline again in key European
countries
By Domino effect, Politically ,the Europe might split into the smaller blocks on the
lines of security, trade and geography.

1. The core group of E.U: Germany, France, Belgium, Luxemburg and

Netherlands

2. Scandinavian nations: Denmark, Sweden, Finland and Norway (due to their

similarity in several parameters)
3. Spain, Italy and Greece (due to their financial difficulties)
4. Eastern European countries, Due to their security reasons.

Gradually, UKs power in decision making will reduce and will evade. However,
Germanys position will be strengthened.
The CMU (capital markets union), which helps in mobilizing the capital in Europe
is backed by UK. If it doesnt continue with the same direction, the cost of raising
capital may increase in Europe. TTIP, (Transatlantic Trade and Investment
Partnership) which will help is decreasing the regulatory barriers is supported by
UK. This might also lost its rigour.
Foreign currency is preferred and liquid. UK is the home for majority of the FDIs
that come in to the EU. It is just not because of its developed market but due to
its English connection. This will be lost by EU if UK exists EU
Finally, If UK exists EU, There will be economical and political ramifications. It
might cause a collapse of European Union.