Would Falkland/Malvinas Islands' Sovereignty Be At Risk With A Brexit?

On June 23, the U.K. will decide if it remains a part of the E.U. and the prospect is gloomy for those in favor of a no-go regarding the departure. Implications are being discussed every day, and several economic and political arguments have been made.

On Thursday, Lord William Hague, the former foreign secretary of the U.K. warned about an –until now- unconsidered danger that a Brexit could bring. A Brexit could pose a risk for the sovereignty of the Falkland Islands’ – also called Islas Malvinas, as Argentina is currently disputing control over them.

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Also complicated would be the situation of Gibraltar, Hague added.

But, what’s the actual risk that Britain's overseas territories face?

Well, in the case of the Falklands, the problem are exports. Most of the islands’ exports go to the European single market, a Telegraph article explained.

““The result could be considerable financial and personal hardship for many people fiercely loyal to the UK… Like many British people, I believe passionately in the unity in future of the United Kingdom, including Scotland, Wales and Northern Ireland and in our responsibilities to people of British overseas territories,” Hague said. ““I do not believe that leaving the EU would be an act consistent with maintaining that unity or fulfilling those responsibilities,” he continued.

“The guaranteed solidarity of 28 nations – including those with strong historic links to Latin America – over British sovereignty over the Falkland Islands would be lost,” Lord Hague concluded.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.