A defining moment
From an investment point of view, Brexit looks to almost certainly have more losers than winners. Moreover, the future of Europe hangs in the balance, which is the reason Varoufakis has chosen not to be a cheerleader for the Vote Leave campaign.
According to him, both the leave and remain campaigns are at fault by taking the very existence of the EU for granted. After all, the EU is already suffering from existential problems brought about by the eurozone and migrant crises. Brexit could deal it the final blow, according to Varoufakis.
“The great mistake that both camps are making is in imagining that the EU is a constant, with the disagreement between them being whether they want to be part of it. But it’s not a constant; it is disintegrating,” he says.
As with all rational discussion, however, what much of this article has neglected to do is to take into account the human element. And, as Societé Générale points out, there are an enormous number of people involved in this debate.
“The reaction of 28 governments and 28 national public opinions over the next three years to a decision taken by 46 million UK voters, and affecting 503 million EU citizens, could indeed leave room for surprises.” And, if the UK does decide to leave, the only certainty is volatility and the only thing we know about that is that markets do not tend to like it much.
