Frost & Sullivan takes positive stance
Following last week’s vote for the UK to leave the EU, Frost & Sullivan is working with its clients to assess, review and plan strategically for the future to create a positive impact on the economy and society.
Senior partner and managing director for Europe Sarwant Singh explained, ‘It is important to note that during this interim period, Britain will still be subject to existing EU treaties and laws, but will be barred from decision making processes. Therefore, existing regulations are likely to continue until negotiations are completed.’
‘However, there is uncertainty regarding the path ahead,’ added Sarwant. ‘This could trigger a dip in business sentiment and delays in FDI (Foreign Direct Investments). On a positive note though, Brexit could pave the way for Britain to expand trade relations with the rest of the world beyond EU, and this would especially help mitigate risks arising from excessive reliance on one trading partner.’
Although Frost & Sullivan suggests the results are ‘a cause for concern’, it also advises that it heralds the mark of a new beginning for the UK which will be influenced by a strong government policy, the success of negotiations with the EU and the rest of the world. Sarwant added, ‘We will have to wait and watch to see how the nation’s growth story unfolds.’
‘Brexit’ is likely to take a minimum of two years to materialise, with the process for withdrawal from the EU expected to start when Article 50 of the Treaty of Lisbon is triggered. Once the intention of separation is formalised, Britain will begin to negotiate withdrawal terms with EU member states on issues such as trade tariffs and the movement of UK and EU citizens, in effect laying the ground for its redefined relationship with the EU.