Light at the End of the (Channel) Tunnel

The decision to hold a referendum as to whether the United Kingdom (UK) should remain a member of the European Union (EU) introduced the term “Brexit” into the global political lexicon. Now that the UK has voted to leave the EU, the term has spawned new variations: will the UK’s departure be a “soft-Brexit” or a “hard-Brexit”? Those advocating a soft-Brexit assume that the UK will be able to negotiate continued access to the EU’s single market in financial services, perhaps by agreeing to join the European Economic Area (EEA) (members of which accept certain laws of the EU, including in relation to financial services, in return for access to the single market).