The EU’s functions

The EU’s functions

The EU’s functions are to break down trade barriers, unify economic growth, and to have a centralized monetary system across the 28 European member states. The UK, as a member of the EU, enjoys the 40 free trade deals e.g., can get tax free goods from countries like Canada, which significantly contributes to its economy.

If the UK exit the European Union, it would significantly change its economy. The United Kingdom would lose its neighboring co-operation and integration of EU partners. However, it would also be a benefit, since the UK can potentially adjust to new trade deals directly to the non-EU states. Different organizations have come up with estimates of the Brexit impact on the UK economy. Some of the organizations include the treasury estimate and some government predictions. Analysis of every institute depends more on the assumptions made on various variations, and also the fundamental economic model in play. To arrive at these estimations, economists focus on multiple sectors such as manufacturing/high-tech industries e.g., the aerospace industry, agricultural departments, and also the income distribution effect among others

Some of the models used include the econometric forecasting model that focuses on behaviors of noticeable groups, the input-output model (GDP approach), and the economy based analysis. Mostly, the theories differ according to assumptions made with the different models.