Acta Universitatis Danubius. Œconomica, Vol 15, No 6 (2019)

Abstract

The Brexit procedure involved several scenarios, mainly because of the difficulties encountered during this
process and of the disagreements between European Union and the United Kingdom. The British hesitation led to the three-
fold rejection of the agreement by the United Kingdom, while the European Union remained as firm on the terms of the
agreement. Also, the United Kingdom refused other scenarios, including the cancellation of Brexit, a new referendum, the
remaining in the European Economic Area or within the customs union. Under these circumstances, the Brexit was
postponed several times after March 2019, as originally planned, sparking numerous debates about the consequences of this
process. The purpose of this study is to analyze the Brexit`s effects on the European Union`s economic power and on the
British economy, using a quantitative approach. Estimates of these effects involve several variables, such as the economic
environment, the investment`s attractiveness, trade and labor market, all depending on the future economic relations between
the European Union and the United Kingdom. In any case, Brexit will generate positive and negative effects for both sides,
affecting the way these two economies influence the international affairs. Also, the United Kingdom`s economy will be more
affected by Brexit than the European one, as we believe.