One year and two major losses! EU had her hands full in the past one year and there are two more years to be go until the committee reaches a definite decision on the Brexit proposal.
The idea of Grexit already hadthe European Union run for a shelter, but while that was thwarted, Brexit was unavoidable. Thanks to Britain's referendum.
The fall out theory remains
The very reason that forced the Eurozone to bail Greece out is now a reality for the Brexit. EU was sceptical that Greece's exit may trigger the fall out of other coutries. The bail out was given and millions of dollars were spent on Greece.
Unlike Greece, Britain was in no financial crisis, it just wanted independence from the immigration law by the EU, which led to a humungous flow of immigrants into the British borders. Britain is out, if not in the process of exiting, leaving behind the insecurity that Greece had once given to the committee.
Recalling the Greece bailout
After much reconsideration and negotiation, Eurozone agreed to bail out the ailing economy of Greece. The former pumped 7.5 billion euros, or $8.4 billion into Greece to help it repay its loans and get the banks running. But that came with a price.
EU put forth proposals of administrative changes in Greece, which included cutting down interest rates and increasing the retirement age.
The country already had growing unemployment and staggering economy in its plate. EU's regulations made it even difficult to cope up. The debt crisis had turned severe since 2010 when international banks and financial investors had pulled out their Greek bonds and other holdings, isolating them from the economic changes of Greece.
The Brexit effect
Call it the doomsday of the European Union, but reports suggest that five more countries-France, Netherlands, Austria, Finland and Hungary could also leave the EU. The currency will stagger menacingly as things will go down from here.
The smaller countries will be apprehensive of whether committee will support them at the time of their need. Even if they did, what price will it ask for?
Russia forms the biggest threat to the EU. During the Grexit era, it was apprehensive that Greece may join Russia and dictate its own terms. With Brexit too, threat remains for smaller countries that may be contemplating leaving the EU.
Clearly, the EU has a lot to cope up with-financially and politically.