Euronomics 1 | Page 4

Euronomics What if the UK leaves the EU? S ince the re-election of the Conservative government there has been a bit of talk about a referendum regarding the UK’s membership of the EU. The referendum regarding the UK’s (Including Gibraltar’s) membership of the EU is scheduled to be held before the end of 2017. The last referendum was in 2012 which ended up in with a 56% majority to stay as a member. What would happen if we were to leave? If Britain withdrew from the EU it would probably preserve the benefits of trade with the EU by imposing a UK/EU Free Trade Agreement. Which would put to rest the fears of many people that imported goods would hugely rise in price. But as we import more form them than we export to them it would probably hurt them more than us to not put in place this agreement so the trade would probably be fine, Many are worried that although we will still get the trade laws, we will have to pay but we won’t get a say. However, we have very little say within the EU, and would most likely have far more leverage outside EU as an independent sovereign nation and the world’s 6th largest economy. So the reality is that the change wouldn’t be as large as everyone worries. 4