In 1999, European countries led by leading country like
Germany, France, UK convinced smaller countries to be part of European Union
with common currency to create the super market area with free flow of one
country citizen into another to increase better understanding of culture. In the beginning itself many country
adopted common European
Union Currency but many like Denmark, UK and few others kept them self away
from adopting common currency.
European Union
decided to keep the administration center at Brussels and down the line managed
to tag in most of first lot of 27 countries. In order to create economic
zone and with a agenda to attract CIS countries also they also allowed Soviet dominated countries
in Euro Zone and supported them with billions of Euros on their infrastructure
to bring to the same level.
Its a saying that when all good then all tries to take the
credit and that what exactly happened.
It was clear that Brussels headquarter got dominated by Germany, France and
Belgium whereas UK were treated like supporting partner.
The Financial crisis in Greece, Portugal and Spain first
showed the differences within different group of countries within EU.
The crisis led European Union into recession and rich
countries were liable to keep funding reckless countries which failed to put a
tab on their pension to expenditure.
Then came the influx of skilled and semi skilled labor in
rich countries for better future also impacted the job prospect of locals.
In my point of view, I
was expecting UK
step for the last five years given their political commentary
UK always used to be in the mind set of
leading the European point of view on the world forum found its self isolated.
Most of the major decisions were moved from UK to Germany and its partner. UK
opposition received golden chance to press the parliament to go for referendum
post terrorist attack in France followed by in Brussels by inflicting the fear
factor among UK citizen.
The impact of UK
exit from Euro zone will have double sword attack across European Union attach
counties. Already reeling under recession, Euro Zone will go further into
recession and more importantly the creditability of Euro currency will get
dented whereas UK will have to reestablish the diplomatically and commercial
contact again. In my point of view, UK currency will also get the hit in the
first few quarter whereas the maximum gainer will be US $ and can showcase that
US $ is the only alternative to trade which Euro attempted to break when may
Middle East counties started demanding payment in Euro's.
The biggest beneficiary of Politico- commercial disruption
will go in Russia favor and they will
have upper talking point with CIS countries to be associated with Russia for
Trade and Russia and other CIS countries may open their market completely for
UK given recent tension among EU and Russia over Ukraine.
