Brexit: Political implications are far-reaching - BBH

Research Team at BBH, suggests that while investors are debating the direct and indirect economic consequences of Brexit (and Fitch and S&P wasting no time in cutting the UK's credit rating), the political implications are far-reaching. 

Key Quotes

“The politics within the EU are going to change dramatically.  Countries (like those in Eastern and Central Europe as well as Sweden) who are members of the EU (but not EMU) are going to lose an articulate advocate.  Germany is going to lose an ally in resisting the statist approaches that France and Italy often propose.  

While the EU is 20% smaller without the UK, the UK itself may see defects.  A majority of Scotland and Northern Ireland voted to remain.  EC President Juncker seemed so intent on punishing the UK that he was willing to antagonize Spain by suggesting Scotland deserves a hearing about staying in the EU.”