Is Brexit a good idea for Britain?

Is Brexit a good idea for Britain?

GRI Debate: Should Britain leave the EU?

As the June 23 referendum on a British exit (‘Brexit’) from the EU approaches, both sides are making forceful economic and political cases for leaving or staying in the EU. In this debate, GRI asked two of its top analysts to take on one of the top political risk issues in Europe in 2016 and discuss if Britain is better off without the EU.

The case for Brexit

Mikala Sorensen presents why Brexit is the better option for Britain, as the EU has abandoned its trade union roots and become a lopsided, meddling, and overly complex bureaucracy.

“Excess regulation is one of the biggest irritants associated with the EU from the perspective of British businesses. In particular, SMEs believe that a departure from the EU’s rigid rules will constitute relief from a significant portion of the bureaucratic burden they experience. Making sure that SMEs have a good basis for success is pivotal for the economy. It so happens that many small and medium-sized businesses would rather toss out ‘the EU’s constant diet of unnecessary regulations which add to our cost base, reduce our bottom line, and raise prices for our customers for no return.'”

Read the full article here.

The case against Brexit

Nandini Rao presents why the risks of Brexit outweigh the benefits, ranging from free trade agreements to diminished growth prospects to another Scottish referendum.

“If the UK leaves the EU, it will no longer be able to benefit from existing EU trade agreements with countries outside the bloc. It may need to negotiate fresh agreements with these countries – a potentially time-consuming process. The absence of free trade agreements in the near-term will increase costs for British importers and make British exports less competitive. Lower exports would increase the UK’s current account deficit, which is already rather high. The UK would be even more reliant on what the Bank of England’s Governor calls “the kindness of strangers” – foreign investment – to fund its balance of payments.”

Read the full article here.

GRI Debates provide critical insight into the world’s most challenging political risk topics. Through well-balanced opinion based articles, GRI Debates offer a forum for deeper discussion into how major political decisions and security challenges affect markets, investment, and economic growth across the globe.

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