EU may collapse any time: IMF

BrexitWashington: The International Monetary Fund (IMF) has cautioned that post ‘Brexit’, the EU may face financial anarchy; and circumstances may lead to the fall in the Euro. If efforts are not made to resolve the conflict, then the current situation of political instability may worsen, owing to which the EU may collapse any time. The IMF had cautioned about the possible financial threat to the EU through its report that was published prior to the ‘Brexit’ referendum. The current report is nothing but the repetition of a similar possible-threat.


The IMF through its recent report has expressed deep concern over the financial progress of the EU. According to the IMF, the year 2017 has shown a depletion in the financial growth rate as compared to year 2016. The financial growth rate in the year 2016 was 1.6%, which has come down to 1.4% in the year 2017. The report further presents a clear analysis that this decrease in growth rate is entirely due to the aftermath of the ‘Brexit’.

All countries that use the Euro as their currency, are currently going through a tough time. Facing the current consequences is not an easy situation. If this financial as well as political instability persists and is not handled with care, then the EU would have to face repeated incidences of unsteadiness. The result of this instability would lead to the EU losing its credibility, as well as face the risk of the economy being shattered down. The EU has been cautioned that the collective consequences of all these factors would lead to the ‘breakdown of EU’.

Brexit - EU fallThe IMF report claims that the ‘Brexit’ negotiations would have a major impact on the EU. The report further stated that greater the time taken for the negotiations, higher would be the economic uncertainty. This may further increase the existing pressure and also market risks. The report also touches upon the ‘Migrant Crisis’ that threatens the ‘Schengen’ visa policy. Post the ‘Brexit’, it is possible that many more member countries may opt for referendum.

The ‘EU’ is facing many internal discrepancies and strains post the ‘Brexit’, which indicates that it is heading towards a financial crisis. ‘Moody’s’, the renowned international credit rating organisation, has declared that the EU has lost its financial credentials. It is now an open fact that the major banks of the leading member countries of the EU are under financial pressure. Recently a French analyst had hinted that two of the EU member countries are about to discontinue with their present currency, the ‘Euro’.

Meanwhile, the Hungarian Prime Minister Viktor Orban, too has questioned the credibility of the EU. He further cautioned, that both the Euro and the future of the European market will be disturbed. Orban in an article published in a German daily, has made a connection between the ‘Brexit’ and the ‘Migrant Crisis’. According to him these two issues have combined and become a huge and a grave challenge that the EU now has to face.

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