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BREXIT – AN UK STATE FINANCE AND TRADE PERSPECTIVE

22nd International Scientific Conference on Economic and Social Development –"Legal Challenges of Modern World"590 BREXIT – AN UK STATE FINANCE AND TRADE PERSPECTIVEJelena Vidovic University Department of Professional Studies, Croatiajvidovic@oss.unist.hrJasenka BubicUniversity Department of Professional Studies, Croatiajbubic@oss.unist.hrABSTRACTAway from a vast political debate, Brexit has many other financial and trade aspects that need closer attention. In this paper we observe trade between member states, their trade with the rest of the world, trade in goods vs. trade in services, GDP of member states, trade balance, contribution of member states to the EU budget, and willingness of UK to follow agreed changes in tax system. The imposed tax rules that arrive from EU are in UK observed as intrusion in sovereignty to impose taxes. This paper deals with structure of export and import of member states with special emphasis on trade between member states and trade with the rest of the world. If we observe trade through two categories ; trade in goods and trade in services, we can conclude that UK trade in relative terms does not primarily depend on trade with member states what cannot be concluded for other member states. In situation when UK does not depend primarily on the trade with EU, is it reasonable to expect that it will continue to contribute to the EU budget and in the same time allow EU legislations to dictate the VAT rates and generally the model in which the taxes should be collected? Another important issue is retained contribution to the EU budget. What kind of effect does the retained EU budget contribution has on UK government finance since UK struggles with budget deficit and trade deficit.

UK, Brexit, EU, trade, budget

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