Brexit - Possible Economic Impact for the Euro Area and the EU

15-12-2016

On 23 June 2016 the UK held a referendum on its membership in the EU. The majority of the British people voted for Britain’s exit from the EU (Brexit). The British Prime Minister announced her intentions to trigger the EU withdrawal procedure before the end of March 2017. Issues to be address pertain to the short run, when the impact of the uncertainty is key. In the longer term trade disintegration is likely to play a powerful role. Brexit is also a manifestation of discontent among EU citizens and could therefore provide an opportunity for far-reaching reforms that would make the euro stronger? This document was provided by Policy Department A at the request of the IMCO Committee.

On 23 June 2016 the UK held a referendum on its membership in the EU. The majority of the British people voted for Britain’s exit from the EU (Brexit). The British Prime Minister announced her intentions to trigger the EU withdrawal procedure before the end of March 2017. Issues to be address pertain to the short run, when the impact of the uncertainty is key. In the longer term trade disintegration is likely to play a powerful role. Brexit is also a manifestation of discontent among EU citizens and could therefore provide an opportunity for far-reaching reforms that would make the euro stronger? This document was provided by Policy Department A at the request of the IMCO Committee.