Brexit will affect not just the UK but the whole of Europe. The Brexit reality is not just an economic problem but part of larger cultural and social forces sweeping across Europe. The impact of Brexit on the EU will result in social and economic changes to the Union and also longer term political and institutional shifts. The extent of these effects remain speculative until the precise terms of UK’s post-Brexit relationship with the EU becomes clear. With the EU's policies on freedom of movement and the economic benefits and drawbacks which the UK and the EU provide each other with, there will be a clear impact with consequences for both institutions.