The political situation is messy, both in the UK and the EU. The next few weeks will be crucial to resolve the crisis. The turbulence on financial markets is natural, but partly an overreaction, says SEB's Chief Economist Robert Bergqvist in a filmed comment.
Bergqvist describes the latest developments after Friday's unexpected news about the outcome in the British referendum. He believes that the best solution to the political crisis in Britain would be a new election. At European level, he hopes that political leaders show openness and responsiveness. Driving a harder line and punish Britain would only benefit the populist and nationalist forces, he says.
As regards to the turbulence on financial markets, Bergqvist says that it is partly an overreaction. According to International Monetary Fund a Brexit is expected to affect global growth, but only by 0.1-0.2 percent.