Www En Brexit

Brexit | The current impact of the UK’s exit from the EU

5 August 2022 | Knowledge, News

Only a few years ago, Europe faced a major upheaval to the international economy with Brexit, i.e. the exit of the United Kingdom from the European Union. This event, like the war in Ukraine or the COVID-19 pandemic, has had significant consequences for the global economy, affecting the quality of our daily lives.

The new EU-UK legal and economic relationship

The most frequently raised question following the announcement of the UK’s decision to leave the European Union was – what will the relationship between the two parties look like going forward? Indeed, international cooperation with the European Union can take numerous forms, each characterised by different levels of economic facilitation. The UK ultimately decided to base this cooperation on the Trade and Cooperation Agreement (TCA). As this agreement has already been in force for a year, an initial assessment can be made as to the practical impact of TCA and whether leaving the EU was beneficial for the UK in any way.

Key conclusions

Although at present it is not possible to accurately predict all long-term consequences of Brexit, a number of conclusions can nevertheless be reached:

  • The EU-UK partnership has always been different. Not only did the UK seek derogations from important obligations within the EU when it was a Member State, but it also expressed clear reservations about participating in the Union from the very beginning of discussions about joining the newly emerging organisations. Thus, it is likely that had the EU and UK paths not diverged, the UK would have continued to cooperate with the Union on a different basis than other Member States.
  • At this point, Brexit can be seen as economically disadvantageous for the UK. As history shows, the very decision to leave the EU via the 2016 referendum caused global financial turmoil. In addition, it affected the certainty of economic cooperation between the EU and UK markets, causing numerous investors to refrain or even withdraw from investing in the UK.
  • The TCA cannot fully replace the cooperation that the UK enjoyed as a EU Member State. Member State status entails a number of unique economic facilitations from which the UK is no longer able to benefit.
  • Different branches of the economy are affected by Brexit to varying degrees and their assessment can also vary depending on the perspective taken. There are, however, quantifiable indicators that enable making fairly objective estimates. For example – according to expert analysis, Brexit has led to a sudden and sustained 25% decline in the UK’s imports from the EU, compared to the rest of the world[1].
  • In addition to this, the UK must now face additional problems such as rising food prices, inflation, labour shortages, and also additional paperwork and sanitary controls at borders.
  • It is also worth noting that government reports published so far have not shown any genuinely positive economic effects of the decision to leave the EU.

**

This article is based on the master’s thesis “The Legal and Economic Relationship between the United Kingdom and the European Union. A Comprehensive Overview of Past and Future Cooperation” by Bartosz Brzyski.

This thesis juxtaposes the previous cooperation between the EU and UK with the new conditions for cooperation between them in the post-Brexit reality. It was written primarily from a legal perspective, yet also with reference to tangible economic effects. Such an assessment of individual phenomena enables giving a preliminary answer to the question of whether, at this point, the decision to leave the EU has been favourable or unfavourable for the UK.

Any questions? Contact the author

Bartosz Brzyski

[1] R. Freeman, K. Manova, T. Prayer, T. Sampson, Brexit: the major trade disruption came after the UK-EU agreement took effect in 2021, London School of Economics and Political Science, 26 April 2022, https://blogs.lse.ac.uk/businessreview/2022/04/26/brexit-the-major-trade-disruption-came-after-the-uk-eu-agreement-took-effect-in-2021/ [access: 22 May 2022]

Latest Knowledge

Banking in 2026: technology, regulation and the new market landscape

The year 2026 will see the banking sector undergo its most dynamic transformation in a decade. The trends identified in Accenture’s Top Banking Trends FY26 report suggest that the sector is entering a phase in which technology and regulation will be inseparable, driving all aspects of change. However, it is regulation that determines the boundaries, pace and manner of implementation for new solutions. We take a look at what else the experts are focusing on.

The new National Cybersecurity System

The amendment to the Act on the National Cybersecurity System (UKSC) is one of the most significant regulatory reforms in recent years. Its main objective is to align Polish law with Directive (EU) 2022/2555 of the European Parliament and of the Council. The directive, also known as NIS2, substantially raises digital security requirements across the Union. The Polish Act on the National Cybersecurity System has undergone a thorough overhaul, covering more organisations (with estimates suggesting nearly 40,000 entities), introducing more demanding obligations, statutory personal liability for management board members, and even more stringent rules for imposing financial penalties. In the case of the most serious violations, these penalties can reach 100 million PLN.

‘Made in Europe’ is no longer just a slogan. It is becoming law

Until recently, ‘Made in Europe’ was just a label. While it was useful for marketing purposes, it lacked any hard, normative content. This may soon change. On 4 March, the European Commission published a proposal for the Industrial Accelerator Act, stipulating that, from 2027 onwards, the Union origin of components will be a prerequisite for participating in renewable energy auctions, accessing public funding, and for being eligible to participate in public procurement procedures. The slogan ‘Buy European’ could become a concrete instrument for supporting local production and controlling foreign investment.

Non-obvious cases of transferring an establishment to a new employer

The transfer of all or part of an establishment (zakład pracy) is a special concept in labour law relating to changes in ownership. Put simply, it is the automatic transfer of all the rights and obligations of the employer from one entity to another, without the need for any additional actions or consents from the parties involved. However, this must be preceded by the fulfilment of a range of informing obligations by both the new and former employers. Let’s take a look at what the process should involve.

Protecting yourself against tax risks in the deposit-return system

The deposit-return system has been in place since October 2025, raising significant tax concerns from the outset. Although the regulations came into force, it was unclear for a long time how to apply them in practice. Some of the regulations needed clarification, some solutions were missing and the published explanations did not cover all the key issues. Consequently, the market began to develop its own operating standards.

Banking sector overview | Banking today and tomorrow | March 2026

On 12 February 2026, the Court of Justice of the European Union (CJEU) issued a judgment concerning the use of the WIBOR index in loan agreements. The CJEU judges confirmed that, in consumer cases, courts cannot examine the correctness of the WIBOR calculation. The banks had correctly informed their clients about the reference rate in accordance with national and EU law.

The issue of the National Labour Inspectorate reform has resurfaced

A new draft law proposing changes to the way the National Labour Inspectorate operates has been submitted to the Sejm. During its first reading on 25 February, the draft was not rejected and was therefore referred to the Social Policy and Family Committee for further consideration. Despite the concerns and controversies raised so far, including by businesses, the legislature continues to pursue the thorough modernisation of Poland’s employment model, which involves increased supervision of the labour market and curbing the abuse of civil law contracts. In this article, we will take a look at the proposals included in the new draft and explain what they mean for businesses.