In less than a week, citizens of the UK will make their biggest decision in more than a generation when they go the polls to vote on whether to stay in the European Union (EU), or to leave it. It’s conceivable that the political and economic future of the entire 28 member EU could be reshaped by the June 23rd referendum.
Those in favor of leaving the EU, known as the “Brexit” option, say EU elitist rules restrict UK companies and leaving would boost the UK economy. They also say that leaving the EU would give Britons control of their borders and limit immigration. Those campaigning to stay (including the PM David Cameron) paint a very grim picture of life outside the EU.
The result of the vote could have acute and far reaching consequences not just for the British and EU economies, but also for global FX markets and G-7 stock markets in particular. At this point, the polls suggest that UK voters are spilt down the middle without an outright majority on either side. Further, it seems the only clear consensus is that a win for the Brexit camp would reshape the future of the UK and EU for decades to come……….the problem is that nobody knows exactly how.