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Subject

The impact of Brexit on northern European countries.

Significance

The United Kingdom's vote to leave the EU presents a particular challenge to northern EU countries -- some of which are, like the United Kingdom, not members of the euro-area -- as they will lose a powerful ally for a more competitive, fiscally disciplined and globally oriented EU.

Impacts

Brexit could accelerate a closer economic, financial and fiscal integration of the euro-area, which many non-euro-area capitals oppose.

Brexit could widen the gap between an 'inner circle' of euro-area members and a periphery of non-euro ones.

The loss of UK contributions to the EU budget means that the burden shouldered by northern EU countries, all net contributors, will rise.

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