Life After Brexit :What Next?

An historic vote for Britain to exit the European Union caused the tectonic plates of the European political and financial systems to shift, setting off sharp tremors around the world’s financial markets, including in India, on Friday June 24,2016

The ‘Brexit’ vote, which blind-sided most market analysts and pollsters, sent stock markets from Tokyo all the way around the world to Wall Street plunging; currency markets too were in turmoil, with the pound sterling collapsing to a 30-year low against the US dollar. 

India was not immune to the shock: the Sensex tanked by over 1,000 points in early trade and the rupee touched a low of 68.22 against the dollar. They subsequently recovered, with the Sensex closing 604 points down and the rupee closing at 67.96. 

Britain's 2.2 million financial industry workers face years of uncertainty and the risk of thousands of job cuts after the country voted to quit the European Union, leaving question marks over London's status as Europe's premier financial centre.  

A leave vote means the future of Britain's financial services industry is now hanging in the balance. 

Investment banks have already warned they could move thousands of jobs if Britain opts out of the EU, while the European Central Bank has signalled it could force euro trading out of London, the world's largest foreign exchange market

Quitting the EU could cost Britain access to the EU's trade barrier-free single market and mean it must seek new trade accords with countries around the world. The United Kingdom itself could break apart, with leaders in Scotland -- where nearly two-thirds of voters wanted to stay in the EU -- calling for a new vote on independence.  

The EU for its part will be economically and politically damaged, facing the departure not only of its most free-market proponent but also a member with a U.N. Security Council veto and powerful army. In one go, the bloc will lose around a sixth of its economic output.