Cameron know's the beneficial value added to the UK economy in trade relations with the European Union and is fully aware of the risk on his own economy should the public decide to opted out. Who could argue for staying put when you have issues such as the Greek debt impasse last year highlighting the difficulty with which members are finding it to mitigate the risk of a breakup of the trade zone by continuously moving the goalposts in terms of rules set down.
However the British prime minister saw these weaknesses as a strength in his argument over why the terms adhered to by the UK needed to be revised and improved so as to not allow the debt contagion or any other issue of crisis to spread further than its border. But the need for these revisions do show the seeds of doubt that has deteriorated the EU's united front for quite some time.
The current agenda lead by the UK on Brussel's could tip the scales and other member nations might consider their chances when assessing the vulnerability of the EU and perhaps think closely at what issues their governments are faced with from the public.
A good example of this would be Sweden and Denmark where the former had adopted the common currency and the latter deciding to keep its own currency in place. The result has seen a divergence between economies with Sweden suffering an insignificant devaluation in the Euro that would make its own goods cheaper, thus forcing them to trade within the EU but remaining the most expensive producer of goods due to the highly skilled nature of its workforce.
Denmark has however resorted to trade with other nations besides those in the EU agreement partly due to low demand within the region but also because of a depreciation in its currency, providing much more flexibility than their counterparts.
The current agenda lead by the UK on Brussel's could tip the scales and other member nations might consider their chances when assessing the vulnerability of the EU and perhaps think closely at what issues their governments are faced with from the public.
A good example of this would be Sweden and Denmark where the former had adopted the common currency and the latter deciding to keep its own currency in place. The result has seen a divergence between economies with Sweden suffering an insignificant devaluation in the Euro that would make its own goods cheaper, thus forcing them to trade within the EU but remaining the most expensive producer of goods due to the highly skilled nature of its workforce.
Denmark has however resorted to trade with other nations besides those in the EU agreement partly due to low demand within the region but also because of a depreciation in its currency, providing much more flexibility than their counterparts.
The UK is seeing the same dilemma with its economy and wishes to abate the closer integration of member nations that it envisions happening due to the debt crisis that's unravelled itself as it gigantic mess. The EU wants to conglomerate members on a sovereign level that would see a common government overseeing the roles of each member.Britain's in-out EU referendum will be on June 23rd. The arguments for and against #Brexit https://t.co/7icyqm0oGr pic.twitter.com/GPrF81QhCi— The Economist (@EconBizFin) March 3, 2016
If one were to judge of the strength of the British economy to the EU they would recognize that the greater degree of autonomy allowed to Britain has helped policymakers steer the UK in the right direction without suffering the impacts from the shenanigans going on in Europe. The political belief in the UK, although parallel to their EU members leans greatly towards the right, business orientated side of running an economy as opposed to centre, socialist ideals.
Another flaw that will trouble the trading bloc as the queue of nations wanting to join swells up, the existing members cannot settle on common ground as their different political ideologies don't match up. The consistent tugging and pulling in separate directions will inevitably cause nations to drift so far apart that they may find themselves no longer fitting the definition of a member, a situation the UK finds itself in.
But the biggest upset such a move would cause to the British economy would be trade relations between themselves and EU nations as the majority of the Top 10 nations that British goods are exported lying in the EU region and accounting for 50% of all exports. If Brexit were to occur these nations might be tempted to introduce red tape that hinders business between each other.
These issues I've highlighted are only a few of the many that are up for debate but one thing is certain in the coming months. As we get closer to the 23rd June voting day the public's stance will become clearer and we will see emerge the true intentions of the people. For now what we have are a set of potential scenarios that are worrying the market.
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