Thursday 5 July 2018

UK's withdrawal process

From 30 March 2019 onwards, the UK will not be a Member State of the European Union. As it is known, more than one year ago the UK notified the European Council of its intention to withdrawal from the European Union, and only a mutual agreement between the EU and UK authorities can change this date.
Since 1957 twenty-two European countries have joined the founding six Members States (Germany, France, Italy, Belgium, The Netherlands and Luxembourg) to become Members States of the European Union. The international organization of European countries was formed after World War II to reduce barriers and increase cooperation among its Member States. Unfortunately, the United Kingdom is the sole Member State ever to withdraw from the Union. After the UK's government had triggered the Article 50 of the Lisbon Treaty, most Member States of the EU said that Britain would likely try to retain all the benefits of European Union membership without obbligation.
As a consequence, the withdrawal process is unique and unprecedented. The prospect of Britain's withdrawal with no deal shows the impact on future trade relations. That's why most investors are still very cautious concerning their exposure to the British equity market. Actually, it is not clear the final deal that will be negotiated between the UK and the European Union.
In the meanwhile, some British politicians have suggested that Parliament should consider holding a second referendum. According to a survey made by www.bbc.com, "The outcome of any second ballot could well depend on who does and who does not vote", considering that 28% didn't vote in 2016 Brexit referendum.  
As mentioned this week by Gabriela Baczynska, from http://uk.investing.com, there are still too many questions and few answers in talks between the E.U and Britain over the country withdrawal from the international organization of European countries.


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