Stunning Сonsequences of Brexit

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The withdrawal of the UK from the European Union has brought fatal consequences for some British Overseas Territories. Will anybody manage to survive?

British Overseas Territories are in danger. Or what are the consequences of Brexit?

Two years ago, the referendum in Britain created a stir in the world. First and foremost it concerned the inhabitants of some of Britain’s Overseas Territories, who were stunned by the results of the Brexit. 51.9% of the population voted to leave the EU, putting in danger those territories which are under UK jurisdiction and sovereignty.

Those who need help the most

While most of us are arguing whether Brexit will be of some use to Britain, such territories as Anguilla, the Turks and Caicos Island, and Montserrat have been on edge recently. The point is that they are heavily dependent on EU aid programs that provide support to all except the wealthiest of the OTs of EU member states. Frankly speaking, these territories rely on EU funding.

Since the aid contract is valid until 2021 and Brexit comes into being in 2019, these jurisdictions should start thinking right now how they will take care of themselves in the future. What’s more, all of this is happening when Montserrat is still recovering from volcanic eruptions; Anguilla and the Turks and Caicos Island need funds to reconstruct their territories from the devastation brought by Hurricane Irma.

It seems that the Falklands will suffer most of all. The consequences of the exit of the UK from the European Union are catastrophic. The Falklands’ budget mostly depends on the fishing licences they currently sell. Spanish ships have a particular interest in buying them since there is no tax between the Islands and EU.

Gibraltar as the only EU jurisdiction among the British OTs

Things are even worse for Gibraltar, the only Britain’s Overseas Territory which is a member of the EU. The future of this 6 square km territory seems to be vague, as almost everything it needs goes through the Spanish land border. Brexit may mean only one thing for Gibraltar: a hard frontier with Spain. Local business will suffer the most since 90% of Gibraltar’s financial services trade were with the UK. The tough border regulations will influence online gambling as well. Compared with Spain, Gibraltar doesn’t impose huge taxes on such business as online games of chance.

The problem won’t steer clear of ordinary people such as those who cross the border daily. In a year, it would be much harder for them to doso. Or much easier? Spain has always been preoccupied with the thoughts of joining Gibraltar’s territories to its own. Until it became a part of the EU in 1986, Spain had been putting pressure on Gibraltar by closing its frontier. On the other hand, the peninsula may lose its labour soon.

For example, online gambling entrepreneurs are no longer interested in running businesses there. Most of them are moving to Malta now. So, if you happen to play at a Gibraltar licensed online casino, you may want to check this link here and look for a venue operating under a different jurisdiction.

Is there anyone who will manage to survive?   

While the situation with the jurisdictions listed above is rather discouraging, Bermuda seems to be quite self-sufficient and doesn’t need EU money. Yet, alongside with the British Virgin Islands and Cayman Islands, it has some concerns about banking and financial regulations.

Conclusion

It’s not yet clear whether the withdrawal of the UK from the EU will be beneficial or not for its residents. But the catastrophic consequences for the British Overseas Territories are pretty obvious. Brexit comes into force on 30 March 2019, so these jurisdictions have some time to prepare for the upcoming problems.

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