Breaking Away: Britain and the European Union
Breaking Away - Now What? INTRODUCTION No one, especially the British leaders who advocated Great Britain leaving the European Union, have any idea what is going to happen. But the short-run economic problems from the breakup are easier to deal with than the underlying social and political problems. It is these underlying problems that could tear the EU apart. PRELIMINARY THOUGHTS Some preliminary thoughts on Britain breaking away from the European Union: Direct economic effects will be minimal, both for Britain and the EU. London will remain the financial capital of Europe. The alternative isn't Frankfurt; it's New York. Much of Britain's trade with EU is part of complicated supply chains within or between multinational firms. This will also continue. Both sides need each either. This will accelerate the current trade negotiations between t...