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ECU Group: Why we shouldn't fear 'Brexit'

The European Union needs to integrate further to succeed and it would be able to do that more effectively if Britain weren't a part of it; that's the view of the ECU Group's Chief Investment Officer, Michael Petley. He says there would be a knee-jerk market reaction to such a vote in the upcoming referendum on the issue, but in the longer term a split would be better for both Europe and for the United Kingdom.

Petley says that a vote for 'Brexit' would be seen as a 'golden moment' for the UK. He agrees with Goldman Sachs which said last week that sterling could fall by up to 20% on the move. However, such a currency devaluation would be a shot in the arm for the British economy, he says, and while some doors would close, 'many more' would open up.

The British Prime Minister, David Cameron, has promised a referendum on the UK's membership of the EU by the end of 2017. It's widely thought a vote could be held as early as this June.

03:25 minutes
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