The UK will shortly have a referendum which will decide its future. It will find out what popular opinion is on the UK continuing in the European Union (EU). From the economic point of view, the UK will do well to remain in the EU. But the attitude to the EU in western countries may cause an out-swinger. The UK is one of the most open societies which has been to its good. It was as an aftermath of the two destructive wars that the EU was formed to prevent a repetition of the menace. The Union has been a success. The EU is a prosperous bloc. Its members are knit together by strong economic ties. There is a common European market which has pulled down many trade barriers. It accounts for 45% of the UK’s exports and 53% of its imports. If the UK quits the EU, it will suffer immensely as it will lose easy access to one of the largest markets.
Business from other countries like India as a rule goes through the UK serving as a link with a huge market. If the market slips out of the UK’s grip, investment in that country will taper off.London is one of the world’s most prominent financial centres. Exit from the EU which is known as Brexit will no doubt undermine the country’s economic stability. Scotland and Wales are no doubt lukewarm about the Brexit proposal. Exit from the EU may even cause disintegration in the UK. Insularity will doubtless add to the growing problems of the country.