8th Economics & Finance Conference, London

IMPACT OF BREXIT ON UK AND EUROPEAN ECONOMY: ROAD AHEAD FOR FUTURE

KARAN SHAH

Abstract:

Britain’s exit in recent time has been much tumultuous in both UK and Europe. Liberal UK forces wanted greater role and decision making power for UK within European Union and that led to the repercussion in the form of Britain's exit from the long partner EU- widely termed as Brexit. The possible fallout has been in terms of both UK’s and Europe’s trade and economic consequences. UK has been a significant partner in EU-UK trade and economic relations. Without Britain, economic and financial policy in EU region will be highly dominated by euro zone. France has emerged as the biggest obstacle in front of European Union’s trade deals. UK does not want Indian IT workers to work in Europe and hence it opposes any EU deal with India in this matter. Britain’s Prime Minister Ms. Teresa May had visited India in recent times to execute a series of trade, economic and other deals with India, which is a vital trade partner with UK. UK views Brexit not to impact UK’s economic and trade interests with its important partners. For it, Britain has to open multiple trade negotiation windows within EU member countries and that toO on an individual basis. However, the cost of Brexit is definitely going to be high for UK, as it can potentially delay these windows and separate negotiations will come at hard bargain with the economic partners. Likewise, EU cannot afford to become a protectionist bloc without UK, but it can be an uncompromising partner with its trade and economic deals with Britain. The present paper discusses all the major issues of Brexit, especially the potential impact on UK’s economy and economy of European Union. Moreover, an attempt has been made to analyze the possible economic future both these entities- UK and EU- have to share, a shared future indeed despite the Brexit's divorce.

Keywords: Key Words: Brexit, European Union, protectionism, trade negotiations, economic impact

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