KIS Bridging Loans
 
Presented by KIS Finance
 
This is Why the EU Nations are Making Brexit as Difficult as Possible
As Brexit Day looms closer and closer, concerns are being expressed as there still hasn’t been any sign of a clear deal between the UK and the EU and how the relationship will develop over the next few years.

We recently conducted a survey where we asked 12,000 members of the public from all over the UK how they would vote if there was to be a second referendum. 9.6% of our respondents claimed they would change their vote, knowing more now than they did in 2016.

A comment that came up frequently in our results is that a number of people who voted remain would now change their vote to leave after seeing how the EU has been treating the UK over the past two years. So, after conducting further research into this matter, we are questioning the reasons as to why it seems the EU are making this transition as difficult as possible for the UK.

The EU currently has 27 other member states (discounting the UK). Perhaps not surprisingly, each one of these countries will be looking out for their own interests and ensuring their country and their people are protected.

It has become clear that a majority of the other member states don’t want Britain to leave the EU.

Here are some of the reasons why:

Germany

Germany is mostly worried about how Brexit will affect their current trade relationships with the UK and how German business operating in the UK will be affected.   A recent report conducted by the European Commission identified the 50 regions in the EU where industrial, manufacturing and trade sectors will be hit the hardest by the UK’s withdrawal. 41 of these regions are located in Germany. Germany’s economy is largely export-focused and the possibility of a no-deal Brexit, or a deal that does not grant the same trading conditions, could be detrimental to Germany’s economy.
Germany see being a good European as the same as being a good citizen. This could be linked to Germany’s history during the 20th Century and how they now have the desire to be a part of Europe. They see the UK’s withdrawal as a weakening of the EU and are concerned that it may lead to other countries (particularly Italy) following a similar path.

 

France

A big concern of France is how Brexit will affect the fishing grounds as Northern France currently depend on British waters for at least 50% of their catches. As Britain is currently a member of the EU, this means they are signed up to the Common Fisheries Policy.  Under this agreement fish are classed as a common resource and all European countries with a coastline and a fishing industry share their territorial waters and have the right to fish in each other’s.

With nothing certain in place, there are still concerns that Britain will return to controlling their own fishing waters, after years of resentment from the British fishing industry of other European countries being able to take a majority of the fish from the UK’s own waters.

 

Hungary

Hungary is currently one of the largest net recipients of EU funds, meaning they receive more from the EU than they contribute. The UK’S withdrawal is estimated to leave a 12billion Euro gap in the EU’s budget which will have to be filled by the other member states. Hungary will now have to contribute more of their Gross National Income to the EU which will increase to 1.2% from 0.85% for the next funding cycle.
Hungary are also concerned over their economic ties with the UK. There are currently 800 British companies operating in Hungary which employ 50,000 people. There are concerns over the stability of the Hungarian employees’ jobs if these British companies were to transfer somewhere else after Brexit.
According to data recorded in 2017, there are currently 93,000 Hungarian nationals living in the UK due to more opportunities being offered for them than in their own country. Still with nothing certain in place, they are concerned over the rights and protections they will be given.

 

Poland

Poland have always been a close ally of the UK within the EU. With the country currently facing disciplinary action themselves from the European Commission over judicial changes, they don’t want to lose the UK as they are worried that this will weaken their influence within the EU.

 

Spain

A poll just after referendum found that Spain was the country which felt the most strongly about wanting the UK to stay in the EU.  Historically there has been a strong relationship between Spain and the UK, with the UK being Spain’s main investment destination.  There is also significant UK investment in Spain.
Spain has expressed strong concerns in relation to preserving the rights of Spanish in the UK and British ex-pats in Spain, who contribute significantly to their economy.
They fear that Brexit might derail their own economic recovery, particularly in light of potential increased EU contributions.

 

 

 

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