11/26/16 | Rahil Modi | Regular Correspondent
On the Surface
On June 24, Britain’s unprecedented referendum and subsequent decision to leave the European Union (known as Brexit) shook the foundations of Europe. Immediately after the vote, the global market suffered a $3 trillion loss. And although markets have largely recovered, Europe is still facing many questions about a future without Britain.
Will other countries follow?
Europe now faces the possibility of other nations following in Britain’s footsteps and also cutting ties with the EU. On one hand, it is very possible the repercussions Britain may face–such as falling markets and political turmoil–may dissuade others for fear of similar consequences. On the other hand, if Britain sees an uptick in economic growth and political stability, other nations will likely follow suit. Germany and France specifically have indicated interest in leaving the Union.
A “new” Europe
For the past decade, Europe hasn’t been a focus of U.S. foreign policy. Since the Brexit however, European leaders have been scrambling to forge a new path for Europe: specifically by advocating for increased U.S. assistance and diplomacy in major cities in continental Europe. To strengthen Europe, United States diplomacy is key. The new vision for post-Brexit Europe hopes to benefit from globalization and bolster trust in the European Union and its Markets.