Brexit: Renegotiation ahead of the UK’s EU referendum – Goldman Sachs

By FXStreet Research Team at Goldman Sachs, suggests that for the UK, as for Europe, much is at stake as the UK faces its in/out referendum on continued EU membership, likely later this year.

Key Quotes

“We have argued in the past that the economic costs of leaving the EU would be substantial for the UK and the process of departing would itself involve considerable uncertainty. Yet, for advocates of leaving the EU, issues of national sovereignty are no less important.

For Europe, which is itself a group of diverse interests, the UK is seen as an important partner, including through its sponsoring of market-oriented reforms. At a time when Europe is facing considerable political tensions – within and between countries – resulting from the refugee crisis, the combined effect of a UK vote to leave the EU and the possibility that those tensions intensify this summer is a worrying prospect.

In our view, the renegotiation under way will result in some improved terms for the UK in its membership of the EU. But it does not offer substantial changes. And, more fundamentally, the UK continues to face the same basic choice – whether it wants to belong to a 28-member union or …read more

Source:: FX Street