After a heated political campaign, voters in the United Kingdom decided by a slim margin, on June 23, to exit the European Union, leading to a change in government. Now that a new prime minister has taken over, the next big question looms: How will the UK and EU negotiate their split?
New Prime Minister Theresa May said “Brexit means Brexit” – but what does that actually mean? Nobody will know exactly what it means until negotiations are completed in 2019, and even after that there will be surprises.
We know what people voted against, but it’s far from clear what they voted for. Solving Brexit conundrum will take time and, Brexit doesn’t even have to happen. There is a belief that the Article 50 exit clause will be triggered at some point over the next six months.This belief may be misplaced, as it is in the UK’s interest, from a negotiating perspective, to delay the triggering for as long as possible. Every day seems to bring about a new, seemingly unforeseen, angle to the decision. There will be short-term and long-term economic implications of the UK’s decision to leave the EU.
Taavet Hinrikus, CEO and Co-founder of TransferWise, a London-based cross-border payments startup, said, “Nothing’s changed yet but everything’s changed. This is likely to affect regulation and the movement of talent: two massive issues for business.”
The concern over immigration from the EU to the UK was one of the major campaign issues of the ‘Leave’ camp in the Brexit referendum. Companies which employ citizens from other EU Member States will be concerned about any change to the freedom of movement of EU nationals.
Following Britain’s vote to leave the EU, one major area of focus has been the potential effect on trade. Negotiating such deals is a complicated, time-consuming business. Few countries will want to sign any deal with UK until they know the precise nature of our post-Brexit relationship with the EU. If the UK loses Single Market access, UK firms and EU firms won’t be able to passport financial services businesses, products and services in and out of London, which is likely to have a significant impact on London’s current position as a leading international financial centre.
The questions are many and the confusion widespread. At Goodwille we will be here to guide you as information is announced, as well as help answering any questions about what a potential Brexit could entail for companies and professionals. If you need to get in contact with us regarding this, please email us on email@example.com or call +44 (0)20 7795 8100.