As you've no doubt noticed, there is a certain lack of political and economic awareness on the part of many of the Brexiters. The benefits of downgrading are that we'd still keep the EU and the economic advantages it brings, yet they'd still be able to tell the brexiters we've left, and giving a knowing wink at the remainers.
Seriously. This is likely.
Yeah, and the EU would profit from an associated status far more than from the other possibilities, since they get basically they get now from the UK + probably more money + the UK out of the decisionmaking.
I agree that this is the most likely option of a Brexit scenario.
I don't think that's an option. Everything the UK does at the moment can also be done in the EU, and that's really bad for us. Any one of the nation states can veto any agreement made on account of their own interests (such is their "lack of sovereignty").
Not only that, but the various Parliaments around the UK have demanded a power of veto over any deal done, as well as others demanding a referendum on accepting any deal.
So in other words, we leave, spend 3 years negotiating a deal, then the Daily Mail doesn't like it and convinces the public to vote it down again... then what?
Then nothing. I honestly doubt that we'll see another referendum in the near future in the UK. Important decisions will now be made over the heads of the electorate to minimize the damage.
France is actually pretty hostile to the UK right now, and it isn't just because we stirred up a hornets nest with the National Front. Let me break this one down.
http://www.theguardian.com/politics...g-briefing-free-trade-free-movement-france-uk
Hollande is not only saying "Start article 50 now!" he is also telling us, in no uncertain terms, that he will not let us remain in the free market without free movement of people - and he is well aware of the focus on that in the UK.
He is basically daring us to jump. But why?
1. We aren't the only nation with a neo-fascist party like UKIP gaining traction. Hollande has La Pen and the far-right to worry about.
2. We leave, and France courts the big financial institutions in London, which gives their economy quite a serious boost that, up until now, the UK has enjoyed. Hollande will benefit greatly from that.
3. The UK falters, the economy shrinks, unemployment rises and a recession takes hold - a powerful lesson for the French people and a weakening the position of Hollande's domestic enemies.
and of course
4. Islamic immigration is a huge hotbutton issue in France right now. But if the UK leaves the EU. The French border authorities suddenly have a very easy way to limit the immigration of Muslims into France. Rather than stopping them at the ports and detaining them, as they currently do, if they find Muslim refugees/illegals on cargo ships bound for England the French may well simply leave them there to travel across the border. It's also possible they might actually "encourage" Muslims stowing away on such ships to move onto UK bound vessels. In addition, the Asylum "jungle" in Calais will have to be moved to UK soil, which will further give Hollande a boost domestically.
Germany is not as hostile, but Merkel is known for charming her opponent in the first step and stomping him/her in the second step.
The right wing populist party in Germany also is on the verge of collapsing after the migrant crisis calmed down and Brexits obvious downturns became visible to the common population in the EU.
Financial industry is another good point. In the current associated countries the financial industries don't get the passport they need to conduct their business in the EU without having a subsidiary there. The stock markets in Paris, Frankfurt and Rome will compete over the investors from London.
I agree with point three and four. The UK becomes an example of what happens if populists get their will.