Will Brexit Kill the Euro?

Will Brexit Kill the Euro?

The people of Britain are keen to dump their EU partners and go it alone, but leaders from around the world fear such a move may destroy what is left of the European Union.

Europe has struggled under poor fiscal management and Britain doe not want to be dragged down buy the EU’s ever increasing death spiral.

Britain is to hold a closely-watched June 23 referendum on whether or not it should stay in the 28-nation bloc, some opinion polls are showing that the nation is still largely undecided on the issue, others see a speedy exit for Britain.

The EU this week cut its eurozone growth forecasts for the year, listing the danger of Britain leaving the bloc as among the risk factors weighing on the economic recovery.

The International Monetary Fund and the G20 group of the world’s leading economies have also warned of the economic dangers of Britain leaving the EU, while the OECD last month said there was “no upside” to a Brexit.

Even the United States has weighed in, with President Barack Obama saying last month that EU membership magnified Britain’s global influence. He also warned that if Britain did leave and wanted to sign a separate trade deal with the US it would go to the “back of the queue”.

A British exit from the EU would have “unforeseeable consequences” for European cooperation, European Commission head Jean-Claude Juncker has warned in an interview with German media.

In an interview with the Funke Mediengruppe press group to be published Monday, Juncker warned that a so-called “Brexit” would “surely have unforeseeable consequences on European cooperation, about which I absolutely do not wish to speculate about because I am convinced that Britons will make the reasonable decision.”

“All Europeans want Britain to remain in the family,” he said, recalling that the EU had struck a “fair deal” with Britain in February on reforms aimed at keeping it in the bloc.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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