The fact that Great Britain is leaving the EU marks a turning point. The “ever closer union” has come to an end. Great Britain has not only turned away from Europe, but away from the Brussels-based rent-seeking establishment led by an increasingly autocratic elite.
Germany is the biggest loser from this decision because Britain’s exit makes the group of EU states in favour of free trade and market economy principles far smaller. Germany will now be voted down in many EU decisions that could have been prevented by a blocking minority of 35%. The fortress-like Europe now to be built will negatively impact German exports.
To prevent other countries from turning their back on Europe, the time has come to correct two major policy failures: the rules on how the euro works and on immigration into countries with generous welfare states. The euro and the principle of inclusion have failed in their present form. Far-reaching reforms are now needed to safeguard their survival.
Policy Contributions and Newspaper Articles
"Brexit: The Unintended Consequences. A Symposium of Views", The International Economy, June 2nd, 2016, p. 8.