How Will Brexit Affect the Eurozone and the EU?  How Will Brexit Affect the Eurozone  and the EU? Marie Leflerová Yang, Hsiu-Yu

Content I.Introduction: definition, reasons, referendum II.Impact on the European Union III.Influence on the Eurozone

INTRODUCTION  Shorthand way of saying the UK leaving the EU - merging the words Britain and exit to get Brexit What does BREXIT stand for?

INTRODUCTION  Rules on business  Membership fees for little in return  Greek economic crisis and fear of being dragged into financial problems outside the UK  Immigration issues, terrorism  Euroscepticism Reasons of BREXIT

INTRODUCTION EU Referendum: Final Results

INTRODUCTION Regional totals

IMPACT £

UK - Uncertain period  Risk of recession  House prices and construction industry, manufacturing sector, foreign investments  Reduction of immigration (100 v 330 mil.)  Independence of Scotland and refunification of Irland  Negotions with EU (2 years)

IMPACT EU  Weaker EU, „bad example“ for others, deepening Euroscepticism  Voting system used for making decisions in the European Council, a reallocation of seats in the European Parliament, staff quotas, and increases in budgetary payments  Germany´s stronger position  Turkish membership of the EU  British exports are 19.4% of the EU’s total exports (excluding intra-EU trade).  International relations (Transatlantic Trade and Investment Partnership, ratification of FTAs)

IMPACT on the Eurozone 1. Near Term Impacts -Decrease of GDP in the UK -Aggressive quantitative program in the eurozone 2. Long Term Impacts -Euro is likely to weaken -Losing confidence -Investments in the eurozone

IMPACT on the Eurozone € RATE

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