European Union Fights To Stop Brexit Contagion From Spreading To Other Countries
On June 19, The Wall Street Journal referred to the Brexit contagion as something that might spill over to surrounding countries, which concerned a lot of investors, stock brokers, traders, and just about everyone in the money market.
It referred to the Brexit contagion as spreading much like the “Eurozone” crisis, where other countries were borrowing competitively against the other, causing some very real consequences to more than a few of them.
Friday morning when the results of the Brexit vote were in, the markets reacted violently all over the world as it was greatly assumed that Britain would remain in the EU, to the point where they invested heavily into it, only to scramble around an estimated $2.1 trillion dollar loss in financial markets across the globe.
This is already being reported as just the beginning of many a contagion to come as other right-wing political parties are beginning to mobilize the masses to also vote themselves out of the European Union.
Germany’s Finance ministry released a strategy document saying that this Brexit contagion could spread to France, the Netherlands, Austria, Hungary and Finland, as they have already expressed following through with a similar revolt over the past several months.
The Express described in their article about the potential threat to the EU, where right-wing parties, such as those lead by candidate Marine Le Pen of the Front National Party in France, is threatening to do the same.
According to The Guardian, the EU’s lawyers are working to speed up the “triggering of article 50 of the Lisbon treaty,” which the article says is an untested procedure for leaving the union.
Germany would have to compensate an extra 2.44 billion pounds a year to the EU when Britain leaves, and, therefore, has an interest to negotiate terms. But Germany also has its own problems with an uprising of anti-immigrant groups over the refugee crisis, which was used in the process to politicize the decision for Britain to leave the EU.
Hours after it was confirmed that most had voted for Brexit, British Prime Minister David Cameron resigned saying it would be up to another PM to lead Britain, sending another shock wave throughout the world.
The Guardian also stated that the EU parliamentary bloc has warned that Cameron’s resignation — if left until October for him to officially leave — would delay the Union’s immediate call to cut ties with England before then.
Schulz is pushing by saying they do not need uncertainty, but any way to stop the further contagion of a Brexit-like scenario would require immediate action, or threaten the survival of the Union.
We can blame the UK for Brexit all we want but simply stated the EU isn't so popular among citizens of EU countries https://t.co/rgOGKlgoS7
— Max Abrahms (@MaxAbrahms) June 25, 2016
In October, when David Cameron plans to trigger article 50, it will start the clock on two-years of negotiations between the two, but the former mayor of London — and rumored to be potential successor as Prime Minister Boris Johnson — is also encouraging that ties be cut immediately.
The article continues to go through a list of reactions from other European leaders and how they would be affected in their relationship with Britain, but the Brexit contagion is already showing signs of reaching the United States through the Republican Party nominee Donald Trump, who has promised a similar scenario should he be elected in November.
[Image by Argus/Shutterstock]
