Maluf’s Take On UK Exiting The EU

After the announcement of the exit of the UK EU (European Union), elected by a referendum at the end of June, the immediate effect was a large drop in stock markets across Europe, experts point out that this output can generate lasting impacts on the global economy, says the executive Flavio Maluf.

According to numbers released by the European Union for the year 2014, the UK has contributed substantially to the organization.

However, Flavio Maluf notes that, according to the director of FN Capital operations, Paulo Figueiredo, the UK’s isolation block will result in a considerable drop in investment received by the country.

Among the EU member countries, there is a union that allows free trade without tax application and extra quotas on products from other countries. With the block output, the UK will have new rates in relation to what was practiced before, which is likely to harm the country’s foreign trade with the EU. On the other hand, says Flavio Maluf, according to the expert Otto Nogami, this output can also bring further benefits to the UK, as from now, the country may enter into bilateral agreements that were not previously reachable.

With the exit of the United Kingdom of the European Union, Brazil can benefit because it will have the chance to enter into bilateral agreements with the country.

The departure of the British EU is a great loss to the block, because it had as core countries Germany, France and the UK itself, and much of its structure is established in these three countries. Currently, France show signs of weakness and fatigue in its economy, thus it is up to Germany to sustain, in economic terms, the block. According to the president of Eucatex, Flavio Maluf, it is a great uncertainty due to the impact that this output can generate positioning of other countries that are part of the block.

Flávio Maluf is a Brazilian Businessman, mechanical engineer, graduated from the Armando Alvares Penteado Foundation (FAAP).  Check him out on Twitter here.

He is president of the company Eucatex and group GrandFood and eldest son of politician Paulo Maluf.