Briefing: Political risk from ‘Brexit’
The EU referendum, which will take place in just under a month in the UK, has been the cause of much political debate. Fears have been stirred up about the potential negative impact of either outcome. But how has this affected investor sentiment and how would the UK’s exit from the European Union impact business in the hospitality industry?
Four hospitality and investment professionals discuss ‘Brexit’:
The referendum is just one example of how political uncertainty can affect business. Any potential disruption or change to regulations and the way business is done could be classed as a ‘risk’ that need to be factored into a business’s decision making at least in the short term.
Some examples of warnings arising throughout the campaigns, about the longer term effects of the decision, are that Leaving the EU would ‘spark year-long recession‘ and that Staying would increase the UKs population and put the NHS under “unsustainable” pressure.
Last year ICSA reported that 63% of boards said a UK exit from Europe could be potentially damaging to their company.
The European Union – often known as the EU – is an economic and political partnership involving 28 European countries. The UK’s exit from the EU has the potential to impact everything from immigration, to the environment, to procedure around working abroad, to law making itself.
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