Effects from Brexit on the EU-27 and the Euro Area Developments

Kaloyan Simeonov

doi:https://doi.org/10.37075/BJIEP.2021.1.02

Authors

Assoc. Prof. DSc Kaloyan Simeonov Head, Department of European Studies, Faculty of Philosophy, Sofia University St. Kliment Ohridski Author

DOI:

https://doi.org/https://doi.org/10.37075/BJIEP.2021.1.02

Keywords:

Euro area, Brexit, Economic and Monetary Union, Banking union of the EU, Euro Adoption

E50, F30

Abstract

Brexit affects all the aspects of life, business and European integration process. It has strong implications also on the developments in the Euro Area despite the fact that the United Kingdom had the so-called “opt-out clause” for not adopting the single currency within the EU as well as despite the abstinence of the UK from participation in the Banking Union of the EU. The purpose of this study is to analyse some important aspects of the influence of Brexit on the EU-27 and the Euro Area developments. It is too early to draw final conclusions on the effects of Brexit on the EU-27 and the Euro Area developments. However, some possible implications may be outlined even today as for example the opportunity for consolidation of the Euro Area and its current reforms, possible implications for the EU decision making process and even a possible stimulation of the enlargement of the Euro Area.

References

European Commission (2021). Capital Markets Union reforms in the EU. URL: https://ec.europa.eu/info/business-economy-euro/growth-and-investment/capital-markets-union_en (accessed 2021-05-19)

European Union (2012). Consolidated version of the Treaty on the Functioning of the European Union. Official Journal.

The Council of the European Union (2013). Council Regulation (EU) No 1024/2013 of 15 October, 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions. Official Journal of the European Union, 63-89. URL: https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2013:287:0063:0089:EN:PDF (accessed 2021-05-10)

Eurogroup (2018). Statement on Bulgaria's path towards ERM II participation. Brussels. URL: https://www.consilium.europa.eu/en/press/press-releases/2018/07/12/statement-on-bulgaria-s-path-towards-erm-ii-participation/ (accessed 2021-05-17)

Eurogroup (2019). Statement on Croatia's path towards ERM II participation. Brussels. URL: https://www.consilium.europa.eu/en/meetings/eurogroup/2019/07/08/ (accessed 2021-05-17)

European Commission (2017). A European Minister of Economy and Finance. Communication from the Commission to the European Parliament, the European Council, the Council, and the European Central Bank. European Commission.

European Commission (2017). Reflection Paper on the Deepening the Economic and Monetary Union. European Commission. 31 May 2017. COM. URL: https://commission.europa.eu/document/download/e5e89384-c62f-4894-b4b8-83b5fd54cf40_en?filename=reflection-paper-emu_en.pdf (accessed 2021-05-17)

Juncker, J-C. in close cooperation with D. Tusk, J. Dijsselbloem, M. Draghi and M. Schulz (2015). The Five President's Report: Completing Europe's Economic and Monetary Union. Brussels. URL: https://commission.europa.eu/document/download/261ad02b-070a-47a1-b52b-b242db48addf_en?filename=The%20Five%20President%27s%20Report%3A%20Completing%20Europe%27s%20Economic%20and%20Monetary%20Union (accessed 2021-05-16)

Office for the National Statistics of the United Kingdom (2021). Data and analysis from Census 2021. URL: https://www.ons.gov.uk/ (accessed 2021-05-18)

European Parliament and Council of the European Union (2010). Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC. Official Journal of the European Union. URL: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32010R1093 (accessed 2021-05-16)

Simeonov, K. (2015). Sazdavane na bankov sauz v ES [Creation of the EU Banking Union]. Sofia: Universitetsko izdatelstvo "Sv. Kliment Ohridki.

Tokarski, P. and Funk, S. (2019). Non-euro Countries in the EU after Brexit. Between Fear of Losing of Political Influence and Euro Accession. SWP Stiftung Wissenschaft und Politik German Institute for International and Security Affairs, SWP Comment 2019/C 03. DOI: https://doi.org/10.18449/2019C03