At least, two very senior figures have warned against the United Kingdom leaving the European Union. This, they say, would have dire economic and political consequences for the EU, and the UK. Britain is headed towards a June referendum that allows its citizens to weigh in on the issue of whether or not their country should leave the union.
According to Italian finance minister, Mr. Pier Carlo Padoan, a departure of British from the EU could trigger a domino effect in which other Eurosceptic nations would feel embolden to unmask their own exit plans. Wolfgang Schauble, Germany’s finance minister, has claimed that an out-vote by the UK would poison the economies of the UK, EU, and other world economies. During an interview held with the guardian, Pier also suggested that Britain’s departure could lead France to do the same during next year’s presidential elections. Currently, anti-European parties appear to be gaining a lot of support.
Both Schauble and Pier have warned that the UK would find it hard to negotiated free-trade deals with other member states if it left the EU. The Italian minister reiterates that instead of leaving the EU, Britain should seek to pursue deeper integration. For instance, European finance ministers could join up and craft a growth-oriented Eurozone economy that would place more emphasis on job creation, as well as controlling inflation. A bond-financed immigration plan has also been proposed as a possible route towards enhancing the Unity of the European Union. Other options include a common banking insurance fund, a European unemployment insurance fund, and a deeper single market. His comprehensive plan has been published in a paper issued by Italy’s finance ministry.
Italy’s Front Runner Role
Mr. Pier’s reform program is seen as an ambitious push to preserve the unity of Europe. Over the last two years, Italy has developed to be a key force in the Union. Italy has also been pushing the EU to press Germany to enhance investment and degrade its current account trade surplus, which has held back the rest of the continent by creating unemployment and low growth. Italy’s plan is being promoted across the EU by the country’s diplomats. It’s unclear whether it’ll really have a lasting impact on the future of the EU.
Britain doesn’t necessarily think that it could lose as much by leaving the EU. According to Boris Johnson, a British politician, Journalist, and Historian, the UK could negotiate a better trade deal from the outside. Britain wants to take advantage of free trade arrangements but isn’t happy with the top down legislation and regulations subject to EU member states. The disagreement is one of policy, and it’ll be interesting to see what direction the referendum takes. Whether the UK stands to lose from leaving the EU remains to be seen. But right now senior EU leaders are doing everything they can to safeguard the unity of the continent!