THE IMPACT OF BREXIT ON DEVELOPMENT OF THE EUROPEAN UNION

Abstract

Analyzes, show that due to Brexit, the EU would lose the place of the second largest economy among the member states, the country with the third largest population and the “financial capital of the world”. The population is reduced from 513 million (EU-28) to 447 million (EU-27) in 2020. GDP decreased from 15.9 trillion (EU-28) to 13.5 trillion (EU-27) in 2020; GDP per capita changes from 31,000 (EU-28) to 30,000 (EU-27) in 2020. In addition, the EU loses its second largest net contributor to the EU budget (2015: Germany €14.3 billion, UK €11.5 billion, France €5.5 billion). Thus, Britain’s departure would result in an additional financial burden on remaining net taxpayers, unless the budget is cut accordingly: Germany, for example, would have to pay another €4.5 billion for 2019 and again for 2020; In addition, the UK would no longer be a shareholder in the European Investment Bank, in which only EU members can participate. The UK’s share amounts to 16%, €39.2 billion (2013), which the UK would withdraw if there is no change to the EU treaty.