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old up five dollar seventy cents. Announced a thirteen sixty forty ten You a treasury down to thirty seconds with the yield of one point three eight percent. And that's a Bloomberg Business Flash. Je listening to Taking Style with Gin Box and Kathleen Hayes on Bloomberg Radio. Seems these days it's hard to overestimate the impact of the UK's vote to leave the European Union, the Brexit. Hard to estimate overestimate just how much impact this is having around
the world. Story on the Bloomberg Today that emerging markets are extending their losses as concern from some kind of contagion UH from Brexit resurfaces. UH. We received a pitch today to do a story talking about how other parts of Europe will benefit greatly from this Brexit decision. We want to bring back someone to the show who we spoke to just before the vote, Marian Harkin. She's a member of the EU Parliament's Economic and Monetary Affairs committee.
She's a former member of Ireland's Parliament, to talk to us about the fallout from the vote, what's next and maybe a little bit on what it means for Ireland in welcome back to the show. Thank you, catching delighted to be with you. So, as we've seen quoted many times in the British press, the UK press, brexit means brexit. Uh,
what does it mean as the EU tries to move ahead? Well, certainly it's we're in Strasbourg here at the moment where in the planery session of the Parliament and you walk around the corridors cutting and you hear interviews going on in different languages. You hear people speaking in different languages, and every second or third sentence you hear the word brexitst That's all you will understand, because obviously there's over twenty languages here. But it just goes to show it's
on everybody's clips. Everybody is very concerned. It's supposed really that there's two impacts we need to look at. We need to look at the political impact act for Europe and the stability of the European Union, but equally we
have to look at the economic fallout. And I suppose from the political aspect, car Team we see apart from the meltdown that's going on in in the UK itself within both the Conservative and the Labor Party, but we also see, for example, in Hungary, Viktor Orband who's the Prime minister, there is having a referendum on the second of October on relocation plans for refugees, and that's the same day Austria is going back to the polls for
a rerun of their presidential election. You remember that Coffer, the member of the far right Freedom Party, was defeated by point zero one percentage of a point and he has said in the last day or two that Austria should hold a referendum on a YOU membership within one year if the block he said, continues to centralize. You've got Marine, leapenn and Anson, You've You've got all of those.
You know that this is part of the political fallout and it's giving oxygen if you like to to those who would like to see the breakup of the EU and who are i suppose supporting very nationalist concerns. And then you've got the economic fallout in the UK and Sterling. We know where it is. It's it's down I think at once thirty at the moment. But I think the fact that Mark Kearney said in the last day or two, and he is the Governor of the Bank of England,
that his fears about Brexit had begun to crystallize. That's very worrying because we see that different property funds yesterday and today have halted redemptions, they're freezing withsdraws. So the big concerns about what could happen there. So just a great deal of uncertainty all around. And as we know, the market craft certainty, but it certainly does not have
the now Marian. One thing that is not uncertain is that lawyers from some of Britain's largest legal firms have been looking to register in Ireland in order to protect their right to practice in the European Union. Is this something that you would continue? You you think will continue
not only in the legal profession but another professions. I think it will because we had the situation just in the last few days that Ian Paisley Jr. That's the son of a famous Ian Paisley, was advising his constituents in Northern Ireland how to apply for Irish citizenship and he had the forms for them. So when you see that happening, you understand that a lot of people are looking for Irish citizenship. I was talking to one of
our ministers today, he was out in Strasbourg. They don't have numbers for those who are applying for Irish citizenship, but all he told me was they're certainly looking at printing more for because they have run out of them. So we are going to see that. And again it's the uncertainty. People don't know what the future holds, so they want to, if you like, maybe have a pote in vote camps. So that's depending on what the outcomes are. They then have choices and I think that's what people
are doing. Well. You know our own Mark Gilbert of Bloomberg News. He's a Bloomberg View columnus and he served most recently as London Bureau chief and he made it very interesting were very interesting column today, suggesting that because the EU doesn't have a written constitution, if I'm understanding correctly, whether and how Brittain respects the June vote becomes a
matter of judgment rather than law. Uh. He also notes that on Monday, the Austrian Finance Minister, when it's as far as suggests UK might not end up leaving, and former Prime Minister Tony Blair also cast out on the plebiscite, saying a fifty vote to leave isn't binding. What what's being talked about me? You well, your your columnist is right.
We have a treaty. But the Article fifty was included in the treaty and the last revision the Lisbon Treaty, in fact it was called and that's for the first time, gave member states an exit strategy. Up to that, it was like, you know, Hotel California, you can never leave if you like. But Article fifty applotted a pathway for member states to leave the EU, but it's quite vague and as of now, nobody can force the UK to
trigger Article fifty. I think most people will say, look, they have to elect a new leader of the Conservative Party. We expect that to happen maybe the beginning of September, give them four to six weeks, maybe even to the end of October. But really they want to be getting their act together at that point. I think most reasonable people would suggest that that might be the timetables. Buff
the UK does not have to follow that timetable. Now, I'm sure if it were to go to the beginning of next year, there would be a lot of concern and perhaps even some impatience, perhaps even turning to anger if the UK didn't make clear what its intentions were. But the ball actually is in their court at the moment. But once they trigger this Article fifty, then there are
two years during which negotiations take place. After that period of time, if no agreement is reached, then we have no deal with the UK, and there would be in the same position. Let's say as China, they would come under w t O ROUS and the period could be extended, but that would require a unanimous decision of all the other twenty seven member states, and you can imagine that would be difficult to find. We're speaking with Marian Harkin,
member of the European Union Parliament's Economic and Monetary Affairs Committee. Marian, how do you respond to people that say that the European Union needs to be more flexible, not only in how it deals with Brexit, but how it deals with many of the other issues that are presented themselves. Well,
I didn't ask answer your previous question at him. When you asked me about Ireland, and I just briefly say one or two sentences for us, there are significant threats of our exports go to the UK and Northern Ireland, and about half of those are from Sames and from the agry food sector, so you can see that they are, if you like, overexposed, and no matter what happens in the intervening two years, we're not going to turn that
ship around. But equally there will be opportunities. If the UK leaves, then will be the only English speaking country in the EU Malta as well, so there are opportunities there. And you also mentioned to me the fact that Tony Blair said that maybe you know it's my change. Perhaps when the negotiated, how the ever deal is a negotiation in two years time, maybe there might be an opportunity of putting that to the British people for an either
or choice. But look, all of those things are are up in the air at this point in time, Marian, really quickly, here are Irish people. Are they saying we can't sell as much stuff to the UK. They're gladfullest competition. Look they're they're very concerned because the drop and sterling immediately affects our exports. So people are very concerned because we know that if if a deal isn't done, it's in everybody's interest to do a deal. But the bottom line here is you can't have al carte access to
the Single market. It comes with toughs, it comes with responsibilities, and we have to wait and see what the British wants and then we can see how we can position our economy to to get the best out of it as it were. Thank you very much, Marian Harkin, member of the European Union Parliament's Economic and Monetary Affairs Committee. You're listening to taking Stockhe'm Pim Fox, my co host Kathleen Hayes, and this is Bloomberg.