The impact of Brexit on the future of the EU lies in the hands of European policymakers. In a best case scenario, Brexit will serve as a forceful push toward reforming European governance. The British vote has highlighted the political limits of ever-deeper economic integration and challenged the view that an ever-closer European Union is the best answer to it. However, the concept of national sovereignty is illusive in the presence of (financial) globalisation. Rather than simply opting out of integration, policymakers should focus instead on rebalancing European governance and national sovereignty.
In this piece, written for LSE Europp I argue that re-nationalization of fiscal policy is vital for regaining support for the European project, while in other areas such as banking union centralized or co-operative approaches are needed to maintain financial stability and revive the European economy.