The four possible Europes after Brexit
Brexit’s impact on business will depend on which Europe emerges in the aftermath, writes Ilaria Maselli.Ilaria Maselli is a senior economist for Europe at The Conference Board, a global, independent business membership and research association.
On 17 January, Prime Minister May laid out her vision for a “truly global Britain” in the wake of Brexit. Despite the shock of the Brexit Referendum, other European leaders have done little to address the spreading anti-globalization and anti-migration sentiments. As an example of what could unfold, look to the upcoming Dutch, French, Czech, and German elections. Over the next few months, what road integration takes could go a long way in determining Europe’s growth rate and the sources fueling it.
Along with the political and policy outcomes here at home, the dynamism of Europe heavily depends on demand coming from abroad. Global growth provides tremendous oxygen to Europe’s economy, especially the eurozone, which exports more than it imports. According to our research at The Conference Board, head or tailwinds from abroad, plus internal reforms to Europe, could lay the foundation for four alternative Europes to start taking shape.