Brexit Update: UK Hopes Meet Harsh EU Realities
Leaders of the 28, soon to be 27, members of the European Union (EU) concluded two days of meetings in Brussels on Wednesday. United Kingdom (UK) Prime Minister David Cameron only attended the first day. The meetings confirm the rhetoric of EU hard-liners that began to trickle out after last Thursday’s referendum. Contrary to the campaign promises of “Leave” politicians, it does not appear that the UK will be able to secure limits on the flow of migrants whilst simultaneously maintaining the economic benefits associated with EU membership.
As EU Council President, Donald Tusk, put it, “There will be no single market à la carte.” The UK’s access to the EU single market will be contingent on the acceptance of all “four freedoms” – referring to the free movement of goods, services, capital and people. The UK would also have to continue to pay into the EU budget and subject itself to the authority of the European Court of Justice (ECJ) to access the single market. With hopes of a middle-of-the-road approach now dashed, the UK will have to decide whether to pursue a “near-in” model, governed by many of the previous restrictions, or a “far-out” model, abandoning the EU perks that had previously given the economy a global competitive advantage.
£1 GBP = $1.34 USD
€1 EUR = $1.11 USD
(as of 9:30 AM EST, 6/30/2016)
Bank of England Hopes to Calm Markets – Bank of England Governor Mark Carney plans to deliver a speech today to ease market concerns and explain plans to maintain the vitality of the UK economy.
New Questions Emerge Around Legality of Brexit – The European legal community has begun to examine the legal implications of last week’s referendum and whether or not it is binding, looking specifically at Article 50 of the Lisbon Treaty, Scotland’s actions and a possible second referendum vote.
UK Banks Lobby to Keep EU Regulations in Tact – In response to growing fears of restricted capital flows, UK banks have urged domestic politicians to maintain many of the EU’s banking regulations. The British Bankers’ Association said, “It is important that we do not have a bonfire of EU red tape, because it could damage our relations with the EU.”
Boris Johnson Withdraws Name from Prime Minister Consideration – Leader of the “leave” campaign, former London Mayor Boris Johnson and likely candidate for prime minister announced today that he would not run for the position to replace David Cameron.