Brexit May Feed Eastern Unrest in Two-Speed Europe, Hungary Says
- U.K. to face ‘inevitable’ trade tariffs, economy minister says
- Euro area may be dividing line between core Europe, the rest
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Brexit may speed the creation of a two-speed European Union, threatening the development of eastern members outside the euro area and potentially igniting social unrest, Hungarian Economy Minister Mihaly Varga said.
The single-currency zone may prove a dividing line between core European states and the rest, Varga said in an interview in Budapest Monday. He nonetheless reiterated that Hungary remains uninterested in adopting the euro for now. The U.K.’s exit from the EU, which will almost inevitably lead to the imposition of trade tariffs on Britain, will reduce Hungary’s economic growth by as much as 0.4 percent percentage point over three years, he said.