EU revengefully shows no mercy to Cameron by demanding a fast and sloppy Brexit now

Mr David CAMERON, UK Prime Minister. Shoot location: Brussels - BELGIUM Shoot date: 28/06/2016 Copyright: No commercial use. Credit 'The European Union'

Mr David CAMERON, UK Prime Minister.
Shoot location: Brussels – BELGIUM
Shoot date: 28/06/2016
Copyright: No commercial use. Credit ‘The European Union’

One of the most historicals EU summits is taking place today in Brussels with 27 instead of 28 member states attending the meeting, leaving Britain and David Cameron out due to the recent decision of the British people to vote in favor of leaving the European Union.

The EU referendum has caused severe consequences not only to the bloc but to the rest of the world as well. The financial markets have hit unprecedented low levels in the last five days forcing the European leaders to speed up the negotiations with the UK regarding the latter’s fast exit.

The EU leaders also fear that more countries will follow UK’s path and conduct “in” or “out” referendums of the EU, something that which will be disastrous for the Union. France, Austria and Holland are among the countries where the far-right parties already propose similar referendums. Furthermore, the current political situation in Spain together with the outcome the EU referendum has urged the head of the Catalan government to once again consider reclaiming independence from Spain.

Financial turbulences

The financial world continues trembling right after the announcement of the EU referendum results last Friday morning. The British pound has plunged against the euro and the u.s. dollar and all main indices have experienced severe losses. More specifically, the gbp/usd exchange rate has dropped by 10,29% since June 23. Similarly, the gbp/euro exchange rate has slided from 1,3072 on June 23 to 1,2057 on yesterday’s session.

The main indices show similar trends. FTSE 100, the index which represents 100 most highly capitalized companies traded on London Stock Exchange, dived 3,28% whereas CAC 40 (Paris market indicator) and DAX 30 (German Stock Index) fell by 8,19% and by 7,7%, respectively. IBEX 35, the Spanish Market index, is also following the downfall of the European indices by experiencing a 11,42% drop. Overall, Stoxx Europe 600, a European index which represents small, medium and large capitalization companies across 18 EU countries, has dropped by 8,7% showing that Brexit has clearly and severely affected the European stock markets.

Outside Europe now, S&P 500 and Nikkei 225 have also been affected by the EU referendum outcome and declined by 5,33% and 5,64%, respectively. What is more, investors seem to have preferred safe-haven choices such as gold which has risen by 5,4% in just two days.

However, extreme volatilities are expected in the short-run of such events due to uncertainty and correlation between global markets. It must be outlined though that the European stocks and British pound have indeed gained momentum yesterday changing the harsh outlook of the previous days. This market stabilization has been probably occurred by speculation that the policy makers will do whatever it takes to minimize the effects of Brexit.

More EU referendums?

The shocking result of the UK referendum has risen several reactions to major countries all over Europe. First of all, Marine Le Pen, leader of the Front National in France, has made it clear that will hold a referendum within six months once she wins the next French presidential elections. Secondly, Geert Wilders, leader of the Dutch far-right party, mentioned last Friday that will follow the footsteps of the British Prime Minister holding an EU referendum. Austria, through its far-right candidate Norbert Hofer, is among the countries which are also thinking of calling for an “in” or “out” of the EU referendum if Europe keeps moving towards a “political centralization”. According to Mr Hofer, Europe should only focus on its economic and trade role.

Spanish elections deadlock create more EU uncertainty

The Spanish citizens voted again after a six month-period but the polls showed similar results leaving the country once more in a political paralysis. Prime Minister Mariano Rajoy’s conservative People’s Party won 137 seats which were not sufficient again to form a majority in the parliament. That is forcing the People’s Party to attempt to form a coalition or be forced to continue ruling as a minority party with Mr. Rajoy as prime minister.

However, this outcome is causing more uncertainty to the political life of Spain and by extension to the entire Old Continent. Such political situations together with the recent Brexit vote increase the possibilities for Catalonia to seek the much desired independence from Spain. Carles Puigdemont, head of the government of Catalonia, mentioned last Friday that Catalonia could claim independence without Madrid’s consent since UK decided to vote to leave the EU without the approval of the rest EU member states. More specifically, Carles Puigdemont said: “It demonstrates that it is perfectly possible to take a decision about sovereignty as all other countries do.”

Europe’s inability to listen to EU citizens

The outcome of the UK referendum has clearly showed that the British people have been displeased by the policies followed by the European Union. The same probably applies to some of the EU member states since many far-right parties are gaining ground.

The latter needs to be seriously taken into account by the European leaders and officials who will need to think now first how to endorse prosperity of the real EU citizens and then the European business and banking sector.

the sting Milestone

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

A day that Berlin and Brussels would remember for a long time

The ‘abuse of food relief in Yemen’ must end now

Microplastics have been found in Rocky Mountain rainwater

How cultural understanding can help in the cultural shock

More beehives and beekeepers thanks to EU support

Repression, use of force risk worsening Bolivia crisis: UN human rights chief

Winter 2019 Economic Forecast: growth moderates amid global uncertainties

Volkswagen getting away with it in Europe

Public opinion misled by the Commission on air transport safety

FROM THE FIELD: A mountain of indigenous knowledge in Peru

MEPs condemn criminalisation of sex education in Poland

Here are 5 new green laws coming into force in 2020

COP21 Breaking News: Conference of Youth Focuses on Hard Skills to Drive Greater Climate Action

Drones, disinfectant, distancing – Europe’s beaches open up

Quashing myths on 2019-nCoV for better public management

Taking fast road to ‘e-mobility’ central to a sustainable future: COP24

Health services for Syrian women caught up in war, foster safety and hope: UNFPA

Our food system is no longer fit for the 21st century. Here are three ways to fix it

Chart of the day: This is how many animals we eat each year

Let’s Learn

MWC 2016 Live: Industrial world prepares to reap digital benefits

One-third of young people still optimistic despite COVID’s dramatic hit on education and jobs

Women’s empowerment ‘essential to global progress’ says Guterres, marking International Day

UN chief condemns explosion at election rally in Zimbabwe that injured dozens, including senior politicians

These 11 EU states already meet their 2020 renewable energy targets

Berlin Calling: DCX Expo on track to grow, in association with The European Sting

Online platforms required by law to be more transparent with EU businesses

Strengthening security through an EU-wide information system

2014 will bring more European Union for the big guys and less for the weak

FROM THE FIELD: Faces and Voices of Conflict

Brexit may finally not really happen; The Brits have second thoughts

Eurozone in trouble after Nicosia’s ‘no’

This is how many women have been nominated for best director in the Oscars’ entire history

South Sudan’s peace process ‘precarious, but progress in being made’, Security Council hears

If this is Globalization 4.0, what were the other three?

JADE Spring Meeting Live Coverage: Entrepreneurial skills in the digital markets

Parliamentary bid to democratize Myanmar constitution a ‘positive development’ says UN rights expert

5 droughts that changed human history

Pandemic: another look at the self

The European Youth Forum needs better signal for its “call” for Quality Internships

Sweden to reach its 2030 renewable energy target this year

The European reaction to the neo-fascist wind

A day in the life of a refugee: why should we care?

The US calls off globalization, targets Germany. Paris offer to Berlin comes at a cost

New EU rules and guidance for a fairer online economy

Young people struggling in digital world, finds latest OECD PISA survey

These refugee children have danced in the snow for the first time

EU adopts new €100 million assistance package to benefit refugees and local communities in Lebanon, Jordan, and Iraq

Commission makes it easier for citizens to access health data securely across borders

These artists created a huge open library – and their idea’s gone global

Gender equality in STEM is possible. These countries prove it

Can green bonds help us manage climate risk?

UN condemns ‘cowardly’ attack on Libya’s national oil corporation headquarters

Newly-elected Nigerian UN General Assembly President pledges focus on ‘peace and prosperity’ for most vulnerable

Compensation for damages by the State for infringement of EU law: the European Commission refers Spain to the Court of Justice for its rules on the compensation for damages incurred by private parties

Scotland in United Kingdom: It’s either the end or the beginning of the end

David Attenborough: The planet can’t cope with overpopulation

Israel is joining forces with Arab states to save coral from climate change destruction

Alarming number of Ebola deaths in DRC a ‘rallying cry’ to scale up treatment

Europe is no longer an innovation leader. Here’s how it can get ahead

More Stings?

Advertising

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s