Processes of disintegration in the Eu and their impact on financial markets Alisa Botsula Scientific supervisor A. O. Zadoia, Doctor of Economic science, professor Language consultant S. I. Medynska, Senior Lecturer

Research plan I Theoretical bases of disintegration processes and cooperation in the financial markets II Analysis of current disintegration processes in the EU III Forecast the influence of disintegration on the financial markets

Purpose Tasks Object Subject to identify the ways which allow reducing the negative impact of disintegration processes in the EU on financial markets. to define the essence of integration and disintegration; to consider positive and negative consequences of disintegration; to enlighten the essence of financial markets; to investigate modern disintegration processes in the EU; to analyze the state of financial markets and their reactions to disintegration processes; to identify ways to reduce the impact of disintegration processes on financial markets; to find opportunities to stabilize financial markets. Tasks Object Subject Disintegration processes The impact of disintegration processes on financial markets

Stages of integrations Features of integration stages Reducing of internal trade tariffs Cancellation of internal trade tariffs Common external trade tariffs Free migration of goods, capitals and labor Common economic politics Common internal and external politics Preferential trade   Free trade area Customs union Common market Economic and monetary union Politic union Theory Incipient integration Advanced integration

Euroscepticism in the EU Public opinion on the question “Do you tend to trust EU?”

The reasons of the Brexit Issues identified by voters as the most influential in voting, %

UK’s financial market connection with the EU Sectors Business revenues on the domestic market International and wholesale business are not related to the EU International and wholesale business are related to the EU Billion pound Banking 65-70 20 – 25 23 – 27 Asset management Included on the revenue doesn’t connected with EU 15 – 18 5 – 6 Insurance and reinsurance 27 – 29 7-10 3 – 5 Market infrastructure and other 10 – 14 1 – 3 9 – 12

Pound reaction

Consequences for UK’s financial markets Loss of access to the common market Change licensing mode for financial companies Reduce the amount of investment by 20% (200 – 300 billion US dollars) Reduce the revenues of financial companies by 20 -35 billion pounds sterling Panic expectations Devaluation of the pound sterling

Ways to reduce losses UK EU to ensure the most liberal terms of trade and investment with the EU; to liberalize investment conditions with other regions of the world to use London advantages as the global financial sector; to prevent the emergence of an economic crisis and make a gradual reorientation from the European markets to the world ones during the transition period. to find a way to solve current problems of the integration bloc effectively; to reduce bureaucracy; To develop a detailed plan of the country's exit from the union

Thank you for attention!