Why Leaving Europe Could Be A Disaster For Investors

This is about more than grumbling over Brussels bureaucracy.

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Progress. From month to month, and year to year, things just get better. We find better ways of making things, doing things, fixing things. This means our lives, and the quality of our lives, just keeps getting better. That’s how it’s supposed to be anyway.

If you were to see a television made in the 1950s, and compare it with a television of today, there’s just no comparison. A 12-inch, noisy, black and white wooden box bears no comparison with a 46 inch flat screen, high definition LCD.

A good thing?

Is progress a good thing? Well of course it is. There’s no argument.

The European Union also had its roots in the 1950s. It started out as a declaration by the French foreign minister of the time, Robert Schuman. This was soon followed by the Treaty of Paris, and the launch of the European Coal and Steel Community. This eventually became the European Economic Community.

Since then we’ve had the Maastricht Treaty, which led to the formation of the European Union. This is a Union that brought us the single currency and the free movement of goods, services and labour.

Extensive funding is provided for groups ranging from scientists and businessmen to farmers. There are extensive rules and regulations to preserve our environment, and there are a range of laws on human rights.

Mobility means that we don’t need visas, that it’s far easier to travel in Europe, and that we can settle in the south of France and on the Spanish coast.

A huge number of British companies trade in Europe. They often trade in euros, their employees travel from Manchester to Paris and Warsaw, and their shares may be listed on the London and Frankfurt stock exchanges.

Leaving Europe would be a backward step

People grumble about Europe all the time. They talk about too much immigration, and excessive regulation. Why, they ask, is Brussels interfering all the time? Leaving Europe may have its attractions, but it would be a disaster for British companies and British investors.

The FTSE 100 would fall, and so would the pound. Some companies would up sticks and leave Britain, and others might decide to locate their next factory, office or lab in Valencia rather than Birmingham. Jobs would be lost. But there’s something more important than that. Because this would change how the world views Britain. It would be seen in a very negative light.

That’s why I view leaving the European Union so seriously. You’re not leaving the Greek crisis, and you’re not leaving what people hand-wavingly call ‘Brussels bureaucracy’. In one fell swoop, you’re leaving over sixty years of European progress.

It would be a backward step. Don’t take it.

More on Investing Articles

Man smiling and working on laptop
Investing Articles

After the FTSE 100’s slump, these bargain shares are calling!

Are you on the lookout for top cheap stocks to buy? Royston Wild reveals three FTSE 100 value shares he's…

Read more »

Man hanging in the balance over a log at seaside in Scotland
Investing Articles

Worried about a stock market crash? Here are 2 things you should know

A stock market crash may look plausible, but it’s far from a done deal. Still, if markets do wobble, I…

Read more »

piggy bank, searching with binoculars
Investing Articles

This FTSE 100 stock soared 900% — but after a 25% crash, is the rally over?

After blowing away the FTSE 100 in 2025, this miner has hit turbulence in 2026 — Andrew Mackie investigates what’s…

Read more »

Businessman with tablet, waiting at the train station platform
Investing Articles

If there’s a stock market crash this week, will you be ready?

Christopher Ruane explains why he's not phased by the inevitability of a stock market crash -- but is actively preparing…

Read more »

A senior man and his wife holding hands walking up a hill on a footpath looking away from the camera at the view. The fishing village of Polperro is behind them.
Investing Articles

How much do I need in an ISA for a £700 second income?

Investing in dividend shares can be a great way to target a second income from a Stocks and Shares ISA.…

Read more »

Mindful young woman breathing out with closed eyes, calming down in stressful situation, working on computer in modern kitchen.
Investing Articles

£15,000 invested in Diageo shares 3 weeks ago is now worth…

Bad times for Diageo shares! The last three weeks have seen yet another drop, but is this a time to…

Read more »

A pastel colored growing graph with rising rocket.
Investing Articles

This FTSE 100 stock has outperformed BP’s shares over the past month!

With the oil price soaring it’s no surprise to see BP’s shares going up. But there’s another FTSE 100 stock…

Read more »

Investing Articles

2 ridiculously cheap shares to consider buying now

Harvey Jones can see plenty of cheap shares on the FTSE 100 and says the Iran conflict isn't the main…

Read more »