CNBC: Here's What Will Happen If The U.K. Votes To Leave The EU
Boris Schlossberg of BK Asset Management, was a guest on CNBC's "Worldwide Exchange" on Thursday and said current expectations are calling for the United Kingdom to remain in the European Union following a June 23 vote dubbed "Brexit."
Schlossberg stated that if the outcome of the vote is to leave the European Union, it will cause a "rupture" to both the U.K.'s economy and that of the entire European Union, as it could open "Pandora's box" for every other country in the union to leave.
What To Expect From A 'Yes' Vote
CNBC's Wilfred Frost explained what would happen in the event that the U.K. votes to leave the EU. To start off, "nothing legal will happen" immediately following the vote, as it is not a binding law but a "signal of the wish of the British people."
According to Article 50 of the Lisbon Treaty of the EU, any member state "may decide to withdraw from the Union in accordance with its own constitutional requirements." However, doing so could take two years and require plenty of negotiations and discussions between the U.K. and the EU itself.
The negotiations and discussions will focus on many aspects but there are three key points: 1) the free movement of people, 2) free trade agreements and 3) the ability for UK financial services to operate freely in other EU states.
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