Summary of Brexit could be the best thing that happened to the European Union

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Brexit could be the best thing that happened to the European Union summary

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With the Brexit vote in the rearview mirror, it is becoming clearer that separating from the European Union could become a punishing process with lasting negative repercussions for the United Kingdom. And the pain is only beginning, according to investment experts Alberto Gallo, Aditya Aney, Tao Pan and Pablo Morenes. Their eye-opening article explores the costs and consequences of Britain’s withdrawal from the EU. While always politically neutral, getAbstract recommends this intriguing look at non-EU Britain to anyone interested in Brexit’s impacts. 

In this summary, you will learn

  • How the Brexit vote has already hurt the UK economy and weakened its currency;
  • Why the European Union will have the upper hand in negotiating trade and other issues; and
  • How Brexit is setting the stage for job losses, inflation and other negative developments in Britain.
 

About the Authors

Alberto Gallo et al. are with Algebris Investments, a London-based asset management firm. 

 

Summary

Post-Brexit vote, the United Kingdom saw the value of the pound sterling versus the US dollar decline, and in an import-driven economy, that translates into greater inflation. Foreign demand and investment have slacked off in London. Low interest rates leave little room for a stimulus rate cut, so Britons can expect tax hikes. All told, job losses, inflation and other factors wrought by Brexit could cut 7.5% from GDP to 2025, equal to some £300 million [$398 million] per week. 

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