The purpose of this paper is to examine the effects of Brexit on social-economic aspects into UK and the European Union as well. It is mentioned that for the first time in a generation there is a serious prospect of a member state leaving the European Union. In Britain, the Conservative government, led by Prime Minister David Cameron, is committed to holding an in-out referendum by the end of 2017. If the UK leaves the EU the impact would depend on the new relationship between the UK and the EU. We consider five models. The impact of Brexit through the trade and investment channels would be most severe in the UK. Regulatory divergence would increase over time, affecting trade volumes and reducing the attractiveness of the UK for investment. This would impact on European businesses invested or trading in the UK and supply chains involving UK firms, but the magnitude depends on the specific Brexit model and is impossible to predict.
Brexit would impact on the position of both the UK and the EU in the world. In economic terms this would be most evident in trade policy. While the UK would likely be free to strike new trade deals based on domestic priorities it would have less leverage and be a lower priority than the EU for other countries.
Prof. Dr. Bilal BİLGİN