BREXIT IS UPON US…OR NOT?

This is a guest article by Manuel Garcia Gojon

The referendum to decide whether or not the United Kingdom must leave the European Union will take place in less than 3 days. With hearts now beating faster than an overheated machine, the polls show a virtual tie, since the margin of error seems to be bigger than the margin of preference most of the time. The suspense of the fate of the largest island of the British Isles seems to be driving concerned members of Europe and England to insanity as Brexit now looms uneasily over the political happenings of the world.

The United Kingdom of Great Britain and Northern Ireland will take upon the decisive task of determining the future of not only themselves, but the entire world. The decision of EU membership for the UK has more to it than it meets the eye, and it will also affect more parties than expected, mostly in the economic scope.

Speculation on the matter is already hurting weak currencies, and if Brexit were to manifest itself in reality, it would have critical implications in the short term for the UK, not to mention a reshuffle of capital at the global level. Analysts at Merrill Lynch say investors still see Brexit as the greatest global risk at the moment, but at the same time, approximately two-thirds of them see it as an unlikely course of events.

On the other hand, in the long term, Brexit could represent trading freedom with Europe, which consequently would birth a competition spree among British enterprise, leading to unprecedented prosperity for the UK, whose levels of prospective economic growth and innovation would be impossible to achieve within the EU.

Whenever there is external competition, instead of forcing European companies to adapt, the EU places expensive legal trouble upon foreign competition, making European companies more uncompetitive than ever. It is well known that “only those who adapt will survive.” Moreover, the people making these decisions are not elected officials; on the contrary, EU elected officials have no say in EU policy.

Brexit might come with a harsh bang in the beginning, but it might be a necessary one, or not…

History will soon unfold itself for all the world to see; patience is our only current commodity.