United Kingdom faces weaker markets and growing regional split a decade after Brexit

Ten years after the 2016 Brexit referendum, the United Kingdom's equity markets have lagged their continental European peers. Since June 2016, the FTSE 100 and FTSE 250 delivered lower price returns than the Italian FTSE MIB, German DAX and Spanish IBEX, although higher dividend yields have narrowed the performance gap. In total‑return terms the FTSE 100 is roughly on par with the DAX, but the pound has fallen about 10 % against the US dollar, wiping out a portion of foreign‑investor gains.

Politically, Brexit has deepened regional divisions within the UK. Nationalist parties now govern in Wales and Scotland, both advocating independence, while a party in Northern Ireland continues to push for Irish reunification. Experts note that the constitutional strain has increased the risk of a breakup, although no immediate referenda are expected. The country has seen six different prime ministers since the vote, with a seventh now taking office, reflecting ongoing political instability.