Brexit: Big Issue to Sort Out Is UK Access to EU’s Single Market

 

The UK’s vote to leave the European Union there has brought speculation as to what leaving the EU will actually look like.

One immediate effect of Brexit took place on July 13, 2016 when Theresa May assumed David Cameron’s position as Prime Minister.

Cameron stepped down from his position as Prime Minister when he decided he could not carry out the action to leave the EU. Cameron was a supporter of the vote to remain in the EU.

“I will do everything I can as Prime Minister to steady the ship over the coming weeks and months, but I don’t think it would be right for me to try to be the captain that steers our country to its next destination,” Cameron said.

May stated that no official action will take place regarding the UK’s withdraw from the EU until 2017. This is to allow adequate time for negotiations and assure that the agreement set in place benefits the UK and the EU as much as possible. May also promoted Boris Johnson, a campaigner for the vote to leave, as foreign minister.

Boris will be on a team that plans the stipulations of the UK’s break with the EU. May’s action to name Boris as Foreign Minister seems appropriate, as Boris has repeatedly said that leaving the EU will ultimately be better for the country.

One question the UK’s business sector is anxious to have answered is what is to come of the trading rights to the EU. The UK will try to retain their access to the EU’s single market, an issue that many UK businesses are actively working to anticipate and compensate for.

Germany’s finance minister, Wolfgang Schaeuble, said it is ‘very reasonable’ that the UK wants access to the EU’s single market. Maintaining access to the single market would ease many of the major concerns UK businesses, Lloyds included, have about withdrawing from the EU.

Schaeuble went on to say, “But I think it is also reasonable position of all European institutions …that we will start the discussions on how we solve these problems raised by the British decision.”

One of the primary motives for staying in the EU was access to EU’s 28-country market. With the UK’s decision to leave, a primary producer to the EU has left. Understandably upsetting the EU’s countries that now have more pressure to produce; Germany is one of these countries.

May and Boris along with other UK negotiators will likely be met with some opposition, but it will be in the best interest of the UK and the EU to assume a gradual and controlled break.

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