Effects from Brexit on the EU-27 and the Euro Area Developments

Abstract

Brexit affects all the aspects of life, business and European integration process. It has strong implications also on the developments in the Euro Area despite the fact that the United Kingdom had the so-called “opt-out clause” for not adopting the single currency within the EU as well as despite the abstinence of the UK from participation in the Banking Union of the EU. The purpose of this study is to analyse some important aspects of the influence of Brexit on the EU-27 and the Euro Area developments. It is too early to draw final conclusions on the effects of Brexit on the EU-27 and the Euro Area developments. However, some possible implications may be outlined even today as for example the opportunity for consolidation of the Euro Area and its current reforms, possible implications for the EU decision making process and even a possible stimulation of the enlargement of the Euro Area.

JEL: E50, F3