After the historical referendum that brought about the first separation experienced by the European Union (EU) comes a period of uncertainty for both the EU and the UK itself. What can be expected after the separation?
A report entitled “Life after BREXIT: What are the UK’s options outside the European Union?” By Swati Dhingra and Thomas Sampson of the Centre for Economic Performance said that the release of the UK is a leap into the unknown. Unfortunately, none of the Brexit supporters have clear and sharp proposals about what to do after Brexit.
The report outlines five critical decisions that the UK must take. Two of them are about the long transition period to be faced afterwards and the free market that Britain will adopt in the future. It has been confirmed that this separation will occur gradually but nobody has any idea how long and what kind of stages are to be passed. UK must also decide on the shape of the free market and the labor market that they will adopt given that the UK’s position on the world is now smaller than when it was still in the EU.
To be sure, this separation process is final and irreversible. And for that, Mario Draghi, president of the European Central Bank (ECB) has expressed readiness to intervene in the market. Likewise, central banks in Japan and Switzerland have expressed readiness to inject additional liquidity with measures not seen since the crisis. On the other hand, they also urged the transition period to be accelerated so that market stability can be quickly recouped.
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