The die is cast

Eric Chaney, Head of AXA IM Research and AXA Group Chief Economist
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24 June 2016

The future of the EU is in question

The UK people have made their decision, with a 51.9% vote in favour of leaving the European Union. Prime Minister Cameron has announced he will resign once the Conservative Party has chosen a new leader. The next PM will have to ‘deliver the instruction’ given by the popular vote and activate Art. 50 of the EU Treaty in order to initiate the exit negotiations. For the rest of the European Union, we believe political implications are more important than short term economic and financial impact: the hard times are yet to come. Within countries, political equilibria will shift further.