Single European Market after Brexit

Present economic situation in the EU after the crisis of 2008–2010, escalating protectionism among EU Member States, voices in favour of reindustrialization of the EU economy in a traditional style of the 1970s and the 1980s, and the British leadership in services and new business models are the most important challenges for the future development of the EU Internal Market, as well as for the EU economy, as a whole. Therefore, the aim of the paper is to evaluate changes in the structure of the EU economy and intra EU trade in the context of Brexit. To this end, we will analyse changes in values and shares of selected sectors directly linked to the EU Internal Market in value added and intra EU trade in 2010–2014. Moreover, in order to grasp potential consequences of Brexit, we will compare data for the EU-28 and the EU-27 (without the UK). Our research allows us to conclude that Brexit may result in reduced supply of innovative and business services with the highest added value in favour of higher shares of regular manufacturing sectors within the internal market of the EU (both in value added and intra EU-27 trade). Therefore, after the UK leaves, the EU-27 will lose its competitiveness and a strong position in intra EU trade vis-à-vis third countries.