A recent article discussed Brexit’s likely impact on the British economy. The majority of voters voted to leave the European Union, a move that has continued to grow in popularity. It has a strong support among conservative and populist voters, as well as workers from low-skilled sectors. Nevertheless, Brexit has raised a host of concerns, particularly for the UK.
EU share of world population will fall from 7.0 to 6.1 percent
As a result of Brexit, the UK will lose its influence in EU governance. For instance, UK will no longer have a say in the decisions made by agencies of the EU. These agencies provide support to the EU and its member states. The UK will no longer have a voice in these agencies, including the European Medicines Agency, the European Aviation Safety Agency, and the European Food Safety Authority.
In addition to this, UK participation in EU policies will become subject to stricter rules for third-country participation. For example, the UK will have to comply with strict EU rules on information security, health security, and cybersecurity. These areas are critical for ensuring health safety and security across borders.
EU share in global exports of goods and services will fall from 33.9 to 30.3 percent
The EU is becoming smaller in economic terms and weaker in geopolitical terms. As a result, its share in the world’s economy will fall from 17.0 percent to 14.6 percent and its share in global exports will decrease from 33.9 percent to 30.3 percent. While this reduction is inevitable, it could also mean a greater level of disunity.
UK exports grew slower than exports of other EU member states. In fact, UK exports to the US grew less than those of five EU comparator countries: France, Spain, and Italy grew at a faster rate than the UK. It also had a slower rate of growth than other EU countries: the Netherlands’ exports to the US increased by eight times over the last year. In comparison, UK exports grew by just over 3%.
EU agencies hit by post-Brexit charges when buying from UK
EU agencies have warned that they could face unexpected charges after Brexit if they buy goods in the UK. The UK will no longer accept goods from the EU that do not meet UK technical standards – this means they will have to meet British standards in order to sell them to the UK.
This will have a negative impact on trade. The EU-UK agreement contains a review clause which encourages the two sides to improve trade and cooperation. However, this clause does not cover financial services. In addition, the UK has refused to include a mobility chapter into the Agreement. This means business travel will become more difficult.
Another significant change to the EU-UK relationship is the removal of the European Arrest Warrant, an internal EU instrument that is subject to the jurisprudence of the EU Court of Justice. With this agreement, criminals will no longer face lengthy extradition procedures between the two countries. Instead, the UK and EU member states will implement streamlined procedures with robust safeguards.
UK economy is at greatest risk of Brexit
There are a number of risks associated with Brexit and the impact on the UK economy. The UK has a large proportion of foreign direct investment, which is a major source of financing. This exposure could be curtailed if Britain loses access to the single market. The impact on wages and productivity could be devastating. A recent report found that the average worker would be 470 pounds poorer by the end of the decade.
In the worst case scenario, the UK will lose five per cent of its GDP in the first decade following a no-deal Brexit. In addition, the UK’s services sector contributes 80 per cent of the nation’s GDP, so a no-deal Brexit would result in significant economic losses.
EU decision making process will become more complex and less efficient
There are several possible scenarios of how the EU could function after Brexit. One is to create common institutions with greater powers than they currently have. These could include a European Telecoms Agency and a European Counter-Terrorism Agency. The other is to consolidate closer cooperation in all policy areas. In this scenario, the EU would represent itself internationally as a single entity, deal with trade exclusively at the EU level without national ratification, and push ahead with more common rules in energy and digital. It would also integrate further with the euro zone in terms of social and tax matters.
The European Commission is the primary executive body of the EU and is responsible for implementing decisions and proposing laws. The commission also represents the EU abroad. It is composed of members appointed by the European Council and approved by the European Parliament. It is currently led by Maltese politician Roberta Metsola. The European Council is made up of the governments of all 27 member states. Its members are grouped by their respective policy areas, such as finance.https://www.youtube.com/embed/rG8R_4s-vls
