From Allianz

"Today is not a good day for Europe,? said Allianz in a commentary titled ?Britain Votes to Leave: A Leap in the Dark.? Allianz went on to say that repercussions from the Brexit vote will be felt for years to come in the U.K. and across Europe because Brexit is a process, not an event, and will sap the EU?s political energy for many years.
?In the short run, we expect severe financial market turmoil, compounded by political instability in the U.K. Heightened uncertainty will reduce U.K. GDP growth by 1-2 percentage points per year while London and Brussels seek to come to an agreement about a new bilateral relationship. Unilateral decisions by the UK, e.g. to restrict EU migration, would prompt retaliation and would make negotiations even more difficult.?

By acting in a collaborative manner, ?British and European policymakers can do much to reduce any disruptions to trade and capital flows,? said Michael Heise, Allianz chief economist. ?Even if the European project from now on will move forward without Britain, the UK is bound to remain a key ally of the European Union warranting close political, economic and financial ties.?

Posted By: essexcanaryOTBC, Jun 24, 18:11:38