What Prompted UK to Go for Referendum to be Part of Euro Zone - Impact Analysis


In 1999, European countries led by leading country like Germany, France, UK convinced smaller countries to be part of European Union with common currency to create the super market area with free flow of one country citizen into another to increase better understanding of culture. In the beginning itself many country adopted common European Union Currency but many like Denmark, UK and few others kept them self away from adopting common currency.

European Union decided to keep the administration center at Brussels and down the line managed to tag in most of first lot of 27 countries. In order to create economic zone and with a agenda to attract CIS countries also they also allowed Soviet dominated countries in Euro Zone and supported them with billions of Euros on their infrastructure to bring to the same level.

Its a saying that when all good then all tries to take the credit and that what exactly happened. It was clear that Brussels headquarter got dominated by Germany, France and Belgium whereas UK were treated like supporting partner.

The Financial crisis in Greece, Portugal and Spain first showed the differences within different group of countries within EU.

The crisis led European Union into recession and rich countries were liable to keep funding reckless countries which failed to put a tab on their pension to expenditure.

Then came the influx of skilled and semi skilled labor in rich countries for better future also impacted the job prospect of locals.

UK always used to be in the mind set of leading the European point of view on the world forum found its self isolated. Most of the major decisions were moved from UK to Germany and its partner. UK opposition received golden chance to press the parliament to go for referendum post terrorist attack in France followed by in Brussels by inflicting the fear factor among UK citizen.

The impact of UK exit from Euro zone will have double sword attack across European Union attach counties. Already reeling under recession, Euro Zone will go further into recession and more importantly the creditability of Euro currency will get dented whereas UK will have to reestablish the diplomatically and commercial contact again. In my point of view, UK currency will also get the hit in the first few quarter whereas the maximum gainer will be US $ and can showcase that US $ is the only alternative to trade which Euro attempted to break when may Middle East counties started demanding payment in Euro's.

The biggest beneficiary of Politico- commercial disruption will go in Russia favor and they will have upper talking point with CIS countries to be associated with Russia for Trade and Russia and other CIS countries may open their market completely for UK given recent tension among EU and Russia over Ukraine.

In my point of view, UK will decide to move out of EU and the reason will be security and on the commercial side, Gold will fly upwards like never before.

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