\u00a9The law of intellectual property is prohibited in any way unlawful use\/appropriation of this article, with heavy civil and criminal penalties for the infringer.<\/em><\/p>\n\n\n\n The economic consequences of <\/strong>Brexit<\/strong><\/strong><\/p>\n\n\n\n The EU will experience the consequences of Brexit in the long run and this\nis because Britain will continue to pay contributions to the EU budget up to\n\u00a333bn. At the same time, this facility, which is achieved to the EU\u2019s 27 most\nmember-countries, will enable the EU\u2019s share of global GDP to fall from 22,1%\nto 18,8% in their state budgets. <\/p>\n\n\n\n At the EU summit on 20th<\/sup> February 2020, the issue of Brexit and\nits economic consequences in the EU budget will create a new upheaval as the\nEU’s new seven-year financial-budgetary framework is discussed.<\/p>\n\n\n\n But the upheaval will continue to exist if it is on the negotiating table\nof what kind of trade deal will apply between the UK and the EU after the\ncompletion of Brexit.<\/p>\n\n\n\n Based on economic statistics over the past seven years, around less than\n50% of UK exports were directed exclusively to the EU. At the same time, most\nof the EU’s exports ended up in the UK.<\/p>\n\n\n\n If the logic of a hard Brexit prevails, which is a very likely scenario and\ngiven the USA’s unwavering support for the UK to absorb the bulk of its\nexports, then EU will imposed tariffs on UK products and services that could\nexceed \u20ac6bn per year. It is therefore given the start of a hidden trade war\nbetween the EU and the UK. <\/p>\n\n\n\n The future of the EU and the UK after Brexit<\/strong><\/strong><\/p>\n\n\n\n The EU member states with the highest proportion of exports to the UK is\nGermany. A slump in its export volume and given the China-EU trade war over\ncontrol of 5G in the EU, Germany will lead to a deep economic downturn, forcing\nthe German government to increase its public spending to offset a drastic\ndecline in its exports.<\/p>\n\n\n\n In fact, Germany will lead to a review of the size of its financial\nassistance to the European Community budget by transferring more financial weight\nto the annual budgets of the other EU member countries. This is also due to the\nupheaval caused by the possibility of a hard Brexit prevalence in EU member\ncountries and which British Prime Minister Boris Johnson uses as a bargaining\nchip.<\/p>\n\n\n\n For the UK, the cost of Brexit will exceed $280bn up to the UK’s full exit\nfrom the EU. Such a frightening amount will drastically increase the British\ngovernment’s public debt, then forcing all future British governments to implement policies to curb their public\nspending and increase the tax on the economy as a whole, necessarily putting\npressure on any growth rates that the British economy will certainly present.<\/p>\n\n\n\n Growth rates that to sustain will require low-level taxation, including to\nattract investment from abroad. Those growth rates in order to sustain will\nrequire low-level taxation apart anything else, in order to attract investment\nfrom abroad.<\/p>\n","protected":false},"excerpt":{"rendered":" Brexit, apart from all the other impacts on Britain’s economy, will significantly cloud London’s Citi leadership as Europe’s top financial centre and one of…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[859,5],"tags":[880,23,25,216],"class_list":["post-1865","post","type-post","status-publish","format-standard","hentry","category-economics","category-economic","tag-boris-johnson","tag-brexit","tag-eu","tag-uk"],"_links":{"self":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1865"}],"version-history":[{"count":1,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1865\/revisions"}],"predecessor-version":[{"id":1867,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=\/wp\/v2\/posts\/1865\/revisions\/1867"}],"wp:attachment":[{"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.liberalglobe.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.liberalglobe.com\/wp-content\/uploads\/2020\/02\/image-2.png\")