Britain flirts with economic insanity in considering Brexit

COUNTRIES usually do not knowingly commit economic suicide, but in Britain millions seem ready to give it a try. On June 23, the United Kingdom will vote to decide whether to quit the European Union (EU), the 28-nation economic bloc with a population of 508 million and a gross domestic product (GDP) of almost US$17 trillion. Let us not be coy: Leaving the EU would be an act of national insanity.

It would weaken the UK economy, one of Europe's strongest. The EU absorbs 44 per cent of Britain's exports; these might suffer because trade barriers, now virtually non-existent between the UK and other EU members, would probably rise. Meanwhile, Britain would become less attractive as a production platform for the rest of Europe, so that new foreign direct investment in the UK - now US$1.5 trillion - would fall.

Also threatened would be London's status as Europe's major financial centre, home (for example) to 78 per cent of EU foreign exchange trading. With the UK out of the EU, some banking activities might move to Frankfurt or other cities. This would be a big blow.