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Britain takes a leap into the dark

  • Author:naky
  • Source:www.diecastingpartsupplier.com
  • Release on:2016-07-04
The people have spoken. Britain’s decision to leave the EU is the biggest shock to the continent since the fall of the Berlin Wall. The repercussions will be felt in the UK, Europe and the west.

More than four decades after joining the European Economic Community, the UK has elected to cut itself adrift. Since 1973, EU membership has anchored its foreign and economic policy. Britain will now leave the bloc of 27 other nations and its guaranteed access to a market of 500m. It is hard to see a way back.

Throughout the referendum campaign, the Financial Times has argued that leaving the EU would be an act of self harm. This vote will damage the economy and weaken Britain’s role in the world. It is also a devastating blow to the EU.

Europe is still struggling with the slowdown in the eurozone and the most severe migration crisis since the second world war. Across the continent, from Paris to Rome and Warsaw, populism is on the march, the establishment in retreat. Britain’s referendum result may well go down in history as “the pitchfork moment”.

The vote will lead to intense economic, financial and political uncertainty. David Cameron’s position appears untenable, though he should stay on as prime minister in the short term to manage a highly unpredictable transition. Britain needs a government to decide the terms of withdrawal from the EU and the new relationship with Europe. The Leave campaign has given few clues on either score.

Across Britain, businesses and investors are today surveying a new landscape. The plunging pound and the collapse in bond yields are harbingers of the turmoil that Britain faces in the absence of clear direction.

It is vital that all parties concerned, from central banks to policymakers in the major capitals, take the necessary steps to avoid a repeat of the Lehman collapse which triggered the 2008 global financial crisis.

On the other hand, the British are a resourceful people with a proud history. The best hope, which this newspaper fervently shares, is that the UK remains engaged, open and, in the best spirit, pro-European. That way lies the future.