Brexit votes causes ‘an earthquake’ in Europe

What the Arabic press is saying about the Brexit referendum.

The Brexit decision may result in thousands of jobs moving from London to other financial hubs. Jeff Mitchell / Getty Images

The full repercussions of the UK vote to leave the European Union are likely to be unclear for some time. The referendum decision will affect the British economy, its immigration policy and much more.

Egyptian columnist Aziza Abdulaziz Al Munir wrote in the pan-Arab daily Al Hayat that the referendum occurred “under several challenges and at a time when Europe is dealing with critical historical circumstances, from the eurozone crisis to the refugee crisis and Europe’s division on how to deal with and contain the influx of refugees”.

However, one of the main concerns expressed by the British people – and especially the older generation – was over the integrity of British identity if the UK were to remain in the EU.

The British economy will incur major losses and growth is expected to slow down substantially once Britain loses the many advantages and privileges of its EU membership. Among the major issues are free trade with European markets and their 500 million consumers.

“Perhaps the political impact of Britain’s exit will be the heaviest. The British will end up adhering to many of Brussels regulations for commercial and economic purposes, just like Norway and Switzerland – two countries that are subject to the EU terms without playing any role in the enactment of these terms,” Al Munir added.

The columnist Abdul Haq Azzouzi voiced a similar view in Aletihad, the Arabic-language sister newspaper of The National, saying Britons have voted on parochial grounds.

“The reason that led David Cameron to quit as prime minister, plunged European institutions into mourning and caused a strong earthquake for strategic alliances such as the American-British and the American-British-European alliances, is that the British chose national sovereignty over the union,” he wrote.

“It is a choice that was made by the most powerful country in Europe and one of the most powerful in the world.”

The British people seemed adamant in their choice despite calls to remain in the union raised by everyone from Barack Obama through to business groups and multinational companies.

Despite Londoners electing their first Muslim mayor, all these attempts failed to convince a majority of the British people to favour union over nationalism, he wrote.

“The British have always felt that they are history’s chosen people,” he concluded, “and that no one has the right to dictate the country’s political, economic or social direction, which has been paved centuries ago.”

Predictions by HSBC are for a tough transitional period, to be marked by turmoil in London’s financial markets. The pound is likely to drop further and inflation to rise, in addition to higher labour costs and a decline in growth by 1 to 1.5 per cent.

Thousands of jobs may move from London to other financial hubs. Given its potential human, industrial and financial effects, Britain will recover but only after causing earthquakes in Europe and abroad.

Citing “informed sources”, German news magazine Der Spiegel said the European Commission will not make Britain’s return easy as a way to discourage anti-EU movements in other countries.

The European Union may argue that it has more urgent issues to handle, such as the refugee crisis, the financial crisis in Greece and the conflict with Russia.

In the best-case scenario, the British people will enter a phase of uncertainty and ambiguity which will not serve investment.​

* Translated by Racha Makarem