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In terms of its impact on the rest of Europe, the real significance of the UKs Brexit debate may ultimately prove to be political rather than economic. Europes post-financial crisis performance has lagged behind that of the US and the UK, leaving Europe beset by a unique set of challenges that sees it confronting a growing refugee crisis against a background of high levels of indebtedness and high youth unemployment. Gone is the liberal vision of shared prosperity, replaced by a narrower vision of Europe based on national self-interest. Against this background, the political challenges of contemplating any form of debt mutualisation is leaving the continent appearing intransigent in the face of slow growth and rising levels of inequality. In narrow economic terms, the immediate impact of a Brexit on the EU is likely to be small, reflecting the fact that in net terms the impact on exports and imports will largely offset each other. The real question is therefore whether a British exit looks like an appealing route to shake off the constraints of European policy coordination towards the sunlit uplands of what in reality would be an economic free-for-all.