Brexit or Nexit ? - Measure Side Effects on European Nations and Global Financial Market
Brexit supporters heaved a sigh of cool relief after the declaration of the final results of general referendum over the Bremain and Brexit policy. Will Britain be separated from EU? The voting results have strongly opted for Brexit . This in-out agenda has been ended with the approval of Brexit to close the tie-up with EU by 2017. However, the exit of the UK will influence global financial market including economical, social and political infrastructures in Nordica countries.
Brexit Affects Advanced EU Countries
France, Germany, Norway, and Holland, are anxious because of the severe side effect of Brexit. EU is a conglomerated organization and it has total 28 countries. These members of EU are permanent with legal rights to co-operate with one another in trading, business expansion, and management of recession inclusive of the reduction of the global insurgency. EU members have launched Euro currencies and the free trading was also permitted without tariffs. They promote overseas business in Eurozones and Schengen areas. EU nationals have separate passports with the least paperwork to enter into Eurozones or Schengen territory. That’s why; EU seemed to be a good organization for these European members. However, gradually, the importance of EU must decelerate due to the cumbersome immigration/infiltration problem along with the threat from ISIL terrorists. EU has not provided any solution to overtake terrorism. Paris and Brussels Therefore, the UK has not had bravery to show to stand resilient against powerful global militancy outfits. British nationals are not being given life care and security in Eurozones. Terrorists play with lives of innocent Britishers who are not able to escape. Brexit is the right step to end war, tension and insurgency. Brexiters don’t want their citizens to go for sleepless nights with fear and stress.
Netherland for Nexit
Netherland is one of the Scandinavian countries and it is supposed to hold the next referendum for Nexit. Many politicians in Netherland have eagerness for Nexit as they blame EU for poor administration, mismanagement, and the loopholes in planning. Terrorists are not resisted and they are brave to defy trained officers and army personnel of EU force. Britain has to spend billion dollars for holding membership in EU. In return, the UK has the lowest security and high tension brewing up surreptitiously. Holland needs freedom in trading. It will invest fund in other countries for more profits. The industry of Holland will be revitalized through the collaboration with non-European nations. The massive chunk of Gulf investment will be won through Nexit. France, Germany, and Sweden are cross verifying the role of EU to handle recession, control insurgency and relocate million refugees. Maybe France will be the next member for cancelling its subscription in EU. So, other EU members will ask for separation to break the European Union. The integration in EU members will be abolished. Global financial market has had bad effect with the retirement of Britain from EU. The value of pound will sink by 10 percent. Pen Lee, an eminent female French political leader, has divulged her resolution regarding the Brexit. She will also apply for cancellation of permanent membership in EU as Britain has done it. There are more understandable reasons to go back losing the EU membership. Eurozones are not amicable and cool for France to build up the infrastructure of economy. Pen Lee admits that EU is now in decaying stage.
Brexiters to Experience another Recession with Nosedive in Appreciation Value of Pound
Brexit campaigners will have to be prepared for another recession if the exit is confirmed. Britain’s financial market will not be out of high risks in case EU blocks the passports and trading permits to go to EU for free trading in Schengen zones. First of all, UK’s companies and investors must bear higher tariffs when they go for doing business or make deals with foreign companies located in Europe. Financial security will be lessened with the fall of the face value of pound sterling as low as the $1.35 against the last year. Since 1985, Britain has not received such a severe backlash with the sudden nosedive in the appreciation value of pound. Major banks in Britain need to accelerate the interest rates at the time of providing loans to customers. On the other hand, the real estate market in the UK is also in severe jeopardy with the slowdown in the value of immovable property. Price of housing property will be stuck during the post exit period in Britain. British investors will have to fight tremendously to have the comfortable niche for lucrative options to invest in non-European nation. Credits scores of the UK will rush downwards because of the absence of flexibility in expanding business in European territories.Many commercial sectors deny tie-ups with the British firms. Therefore, Britain will have a futuristic recession if the Bretixt is finalized in the long run. Simultaneously, American crude oil market has lost few credits with the approval of Brexit. Around 3.8 percent (approximately $1.93) has been reduced or lost by American crude oil traders Brent crude oil price has fallen to $48.85 per barrel with a decrease by $2.07.
Immigration Issue Forces Britain and Other EU Members to Choose Exit
Refugee rehabilitation problem is now an unbearable issue to Britain, France, Germany and Holland. These helpless poor asylum seekers require financial aids, clothes to wear, and shelter. Who will approach to receive these immigrants? The national economy is being jeopardized because of the over exodus. Britain has its own educated and trained population. So, excessive immigration or infiltration will create unemployment with poverty.
Cons of Brexit will not be understood overnight. Britain might have studied meticulously before hosting the referendum for Brexit. The freedom for global trading will be enjoyed by Britain. Nexit will be the voice of Netherland to divorce EU in future. However, the demerits of Brexit or Nexit must not be ignored while assessing the long term impact of such legal exit or separation from EU.