Back to the Future with Brexit Result Today!
The unexpected UK referendum result knocked European market indices more heavily than in the UK. Europe is already facing a basket of existing problems which may now include other EU countries opting to leave.
What does Brexit mean? Does it offer a bright UK future or is it a retrograde step? How can voters' aspirations be best achieved without dividing the country? Policiticians will need to deliver on their Brexit electioneering promises by securing the much mentioned Brexit benefits.
The UK stockmarket should temporarily regain its footing before Europe does. The UK benefits from having the flexibility of its own foreign exchange, can set its own interest rates, and will have future ability to make key decisions quicker.
Concerns or doubts about any successful UK-EU negotiations may delay or halt investment decisions. Neither will the EU be a pushover as EU now holds the trading deck of cards. The UK negotiating big talk may sit pretty at home, but wil not in practicable terms work out in Europe.
In reality, the UK puts itself at the back door asking straight back for many things it has voted upon to give up! The UK's future growth rate may soon enough may look more sluggish than forecasted. The EU in effect will set the terms of any negotiations and the UK will window dress the final outcome as a Brexit victory. In lay person terms, UK will pay full cost of membership but without full benefits of that membership. What UK ultimately gains will need to be spun cleverly at home to avoid focus on what has been lost.
Meanwhile, a warning lesson has been shot across the bow or Europe. Draconian belt tightening on citizens is unpopular and gone on too long. The potential for the further rise of extreme right and left-wing political parties leaves Europe potentially vulnerable to chaos in financial and in nationalistic terms. The Brexit vote may be a wakeup call for more EU reform in key social areas.
Skilful political leadership with consensus is required to avoid UK breakup with Northern Ireland and Scotland leaving. Don't forget about Gibraltar difficulties also?
The real fallout is mainly going to be disappointment for voters that the future may not be as rosy as pictured prior to Brexit vote. …
