What if the UK Makes a Brexit?

Featured Video Play Icon

Leaving the European Union would have negative effects for the UK in the long term.

On June 23, millions across the United Kingdom will vote in a referendum to decide if the country should make a “Brexit” by leaving the European Union (EU).

The “European question in British politics” has dominated the news agenda since Prime Minister David Cameron promised to hold an in-out referendum before 2017. This was in response to growing calls from right-wing voices within his own Conservative Party and the UK Independence Party (UKIP) to let the public decide if they want to remain in a club where Britain is bound by Brussels’ regulations, high membership fees and is not free to establish its own trade agreements with the rest of the world.

As of early June, opinion polls show that competition between the “remain” and “leave” camps is extremely tight, and the British public’s vote could swing either way on June 23. But what will happen if the UK leaves the EU?

This Bertelsmann Stiftung video explains that two Brexit scenarios are possible: A “soft exit” might mean that the UK keeps a similar status to Switzerland and maintain trade relations with the EU; while a “worst case” scenario might result in the UK losing access to the single market, and face higher import taxes or trade tariffs on goods and services.

Overall, a Brexit has more negative effects for the UK in the long term and might result in a decline in slower productivity growth and innovation in the country.

The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy.

Photo Credit: Abi Begum / Flickr

We bring you perspectives from around the world. Help us to inform and educate. Your donation is tax-deductible. Join over 400 people to become a donor or you could choose to be a sponsor.

For more than 10 years, Fair Observer has been free, fair and independent. No billionaire owns us, no advertisers control us. We are a reader-supported nonprofit. Unlike many other publications, we keep our content free for readers regardless of where they live or whether they can afford to pay. We have no paywalls and no ads.

In the post-truth era of fake news, echo chambers and filter bubbles, we publish a plurality of perspectives from around the world. Anyone can publish with us, but everyone goes through a rigorous editorial process. So, you get fact-checked, well-reasoned content instead of noise.

We publish 2,500+ voices from 90+ countries. We also conduct education and training programs on subjects ranging from digital media and journalism to writing and critical thinking. This doesn’t come cheap. Servers, editors, trainers and web developers cost money. Please consider supporting us on a regular basis as a recurring donor or a sustaining member.

READ MORE IN THIS 360° SERIES