The United Kingdom exited the European Union following the passing of the Brexit referendum that was conducted in June last year. The immediate consequence at https://br.linkedin.com/in/flavio-maluf-172147b3 to that was an unprecedented 12 percent decline in the European stock market. This was then followed by the weakening of the sterling pound, hitting its lowest value in over thirty years. Flavio Maluf, an economy expert, argues that there are more consequences yet to be seen.
Effect on the British Economy
The British, who championed the exit, argued that inflationary pressure was high in the United Kingdom as a result of overspending on the European Union. According to Flavio Maluf, UK faces a significant drop in investments from the other EU countries, which will potentially harm the country’s economy in the long run.
New Tariffs and Quotas
Following the exit, Britain will stop enjoying free trade that exists among the European countries. This means that products from the country will be subjected to unprecedented tariffs and quotas, which will negatively affect its foreign trade with the EU. In an optimistic approach, however, Flavio Maluf pointed out that the UK will benefit from bilateral agreements that were previously unavailable.
Fresh Bilateral Terms
The exit will allow Britain to sign bilateral agreements with other countries on fresh negotiation terms on Segs.com.br. Previously, all bilateral agreements for the country were subjected to EU rates and standards. Flavio pointed out that his native country, Brazil, would not benefit much from this since the UK is not among the major trading partners to Brazil.
Effect on the EU
The exit robbed the European Union one of its largest economic contributors. The UK was also playing host to most of the EU’s structures, which complicates the matters even more for the union on economia.estadao.com.br. After the exit, France and Germany were left as the strong EU members, although the French economy has been shaky lately. Maluf argued that there could be a possibility of other EU countries following the British path in the recent future.
About Flavio Maluf
Flavio Maluf is an alumnus of Fundacao Armando Alvares Penteado, in Sao Paulo, Brazil where he graduated with a degree in Mechanical Engineering. He also attended the New York University. Flavio started working at Eucatex in 1987 serving in different departments and capacities. He started in the trade division and rose through the ranks to become President in 1997.