EU must act in the collective interest - and move forward, not backwards

AFTER a small majority of Britons voted to leave the European Union last week, most attention has understandably focused on the potential economic, political, social and psychological impact on the UK - which, so far, has been negative on all fronts.

However, the EU is also being severely impacted. And if London needs to go back to the drawing board to figure out a way forward for Britain, so too do EU leaders. The European project (which has been going on for 65 years since the formation of the European Coal and Steel Community in 1951) has huge institutional achievements to its credit - including the creation of a free-trade community with free movement of people, a Court of Justice, a common central bank, and a Parliament. It has suffered multiple setbacks, ranging from wars on its borders and economic shocks such as the collapse of the European Exchange Rate Mechanism in 1992 to, more recently, the global financial meltdown of 2008, which in turn led to the eurozone crisis. To boot, there is a refugee crisis resulting, especially, from the war in Syria. Despite it all, the EU has not only survived but expanded, delivered peace and (at least until recently) prosperity, all within a democratic framework.

But now the EU is back at a crossroads. Its second largest member in terms of economic size has voted to exit the grouping. This is fanning the flames of Euroscepticism - which has been on the rise in major member states such as France, Italy, the Netherlands, Sweden, and even Germany. The EU is facing what is probably its greatest existential threat since its inception.