Brexit – What are the Lose & Gains for E.U.?

The United Kingdom, one of the most influential members of the E.U., is no longer its ally now. European Union finally lost one of its most potent & influential members – the United Kingdom on January 31, after a long hustle. European Union has been an intergovernmental organization of European Countries for over 45 years. U.K had great importance to E.U. in many essential aspects – Geographically, Economically & Politically. Though, the effect of Brexit remains speculative until the U.K’s post-Brexit relationship becomes apparent with the E.U. Eventually, U.K will need to have a good relationship with the E.U. because of its economic & trade needs, whereas it will be hard to cooperate with Brexit loss for E.U. as well.

            Unambiguously, there are a few things which Brexit has indicated sharply. During the 11 months Brexit Transition Period (February 1 to December 31), U.K would gradually & securely settle its market & economic ties outside the E.U. agreement. Thus, it’s a period of Brewing & reorganizes its structures out of the E.U. world. At the same time, there is a significant loss for E.U. caused due to Brexit as E.U. powers are destined to decline further in the upcoming years. Europe, as a Continent, is already facing a long term democratic crisis. Europe is the oldest continent across the Earth, with a median age of 45. Its working-age to decline to approximately 50 million people by 2035.

            Apparently, on the other side, the E.U. has many Competent & Capable militaries with Robust Economies, which strengthens the European Union regime & its influence across the world. E.U. still comprises 3 out of 10 economies that belong to Top 10 Economies Club, even post Brexit – France, Germany & Italy. E.U. will leave the U.K. with new tariffs & other barriers will come into forces after the Transition period ends on January 31. This will put an onus over the U.K. administration to cope up with new Trade rules. Now, it’s a need of an hour for the U.K. to have some tax relaxation with E.U. in Trade deals. Here, the E.U. has a chance to negotiate according to its favours as the E.U. is a big market for the U.K., which unfolds a great negotiation space for E.U.

Brexit – A gain for the U.S

The day after Brexit was voted, the currency market was in turmoil. The Euro fell 2% to $1.11 & Pound fell 8% to $1.36. Which means both increased the value of Dollar. Thus, Directly or Indirectly, the whole Brexit exercise will benefit to the U.S as well to an extent.

The threat of Dissolving E.U.

Vividly, if we have a look at the entire Brexit exercise, we may see a rise of Anti-immigration parties throughout Europe. And, if these parties get a good ground in France & Germany, which is the backbone economies of the European Union. Then, France & Germany can also lead to vote against the E.U., which may hit the E.U. badly.

          European Union should somehow turn its attention towards these sensitive concerns before it is too late. In this hard time when Coronavirus has hit the E.U. the badly, it is going to face a big crisis that may derail its attention towards the real issues affecting the European Union. A partisan is never a good option though it looks like a solution.