Economic Consequences of European nations leaving the EU report by Flavio Maluf

The stock markets fell by 12% with the announcement that the United Kingdom was leaving the European Union (EU). Other consequences included the devaluation of British currency, the sterling pound which reached its lowest level since 1985. According to Flavio Maluf, the long-term consequences to the global economy cannot be underestimated and will be felt.


Consequences to the British economy


The United Kingdom spent 11.3 billion Euros and 6.9 billion euros it received from EU for the 2014 data. This consequently increased inflationary pressure on the British economy. Flavio Maluf however argues and quotes FN capital director ‘Figueiredo’ that the British economy will have the considerable drop of investments received from investors. The end of free movement of people and country between member countries will have the negative impact on the British economy.


Trade in the United Kingdom and Europe.


In international trade there are tariffs and other quotas imposed on goods from other nations. With the exit of British from EU, it means it has to draft new customs union that won’t allow free trade from any country including those from EU. This will likely harm foreign trade. Flavio Maluf remarks and quotes Otto Nogami that the British exit may also bring some advantages to the United Kingdom. The country will have to move ahead and sign bilateral agreements with individual countries which were not viable before.


Consequences on the Brazilian imports and exports


Brazil will benefit because it now can enter bilateral agreements directly with the British which previously was negotiated under the EU standards umbrella. However, the benefits are very limited as Brazil is a major trading partner to the United Kingdom the trade accounts for less than 2% annual exports.


Impact to the European Union


The United Kingdom was one of the major pillars of the European Union as part of established countries. The British exit from EU creates a major crack in the Union and countries like France has shown weaknesses in its economy leaving Germany to sustain the block in economic terms.


Flavio Malouf


Flavio Maluf is a Brazilian businessman born in 1961; he is a mechanical engineer by training and a successful entrepreneur. He is currently the president of Eucatex and grand food group. He’s also the older son of politician Paulo Maluf.




Eucatex was started in November 1951 and its headquartered in Sao Paulo Brazil as the first company of Brazilian origin to think about acoustic comfort and environment. It started the use of eucalyptus as a raw material to produce ceiling tiles and panels. Eucatex was born from Americana sawmill established in 1923 in Sao Paulo Brazil. It has done considerable business and started exporting ceiling tiles and panels to Europe in 1965.