Unwinding 42 years of economic cooperation and trade deals will not be easy, though, and EU leaders will be in no mood to give an inch to a leaving Britain. Otherwise, the Union will lose more members.
There cannot be any special treatment for the United Kingdom, said Manfred Weber, leader of the European Peoples Party, the largest bloc in the EU parliament. Leave means leave. The times of cherry-picking are over.
Leave negotiations will suppress any hope for economic growth from the EU until the deal is made, and the uncertainty around those talks may very well cause a recession in the EU, which has an economy about the same size as that of the US
Add in trouble with Chinas economy, Japans flirtation with recession, Africas recession due to commodity prices and big problems in Latin America, and who does that leave to power the global economy? Only North America, and neither Canada nor Mexico can help because of depressed oil prices.
That leaves the United States, and guess what? Our economy is not healthy enough to drive the world economy forward. In fact, we are at risk of the global economy dragging us down as the value of the dollar skyrockets and our trade deficit balloons.
US markets are down, but the drop isnt out of the range of what investors have endured before. Thats because so many listings on the Dow and Samp;P 500 are domestic companies without exposure to Europe. But the multinationals are taking it on the chin, and that will trickle down to domestic companies in time.
Due to the far-reaching impact of this vote, Brexit will inevitably affect the British and the European economies and the wider global financial markets, said Nigel Green, founder and CEO of deVere Group, a London-based financial advisory firm. The decision may have been taken in the UK, but it will impact the rest of the world too.
The UKs decision has already sparked talk of Scotland and Northern Ireland leaving the UK to remain in the EU. Then there are the leavers who want similar votes in France, the Netherlands and Greece. Every one of those votes will further destabilize the global economy.
Angry voters in the UK may have set off a global recession with their fit of pride. Do they know what they have wrought?