Aussie expert: Brexit strengthened by Brussels attacks

The terrorist attacks in Brussels which occurred in late March, will further strengthen the case for Britain to leave the European Union (EU), according to University of New South Wales economist Tim Harcourt.

"In some ways the security argument could be stronger than the economic arguments for leaving the EU," Harcourt told Xinhua.

The attacks in the heart of the EU, also added pressure for change in refugee policy in the region.

"There's been a hardening in the rest of the Eurozone, so I think probably Merkel's (German Chancellor Angela Merkel) open heart to the Syrian refugees is probably going to change," he said.

Harcourt noted the Schengen labor market where people can cross borders without passports will need a rethink.

"It's a shame because it had great economic benefit, but they probably can't take the risk now after the Brussels attacks," Harcourt added.

The U.S. dollar lifted against the euro following the attacks.

Harcourt said the U.S. dollar is often seen a "flight for safety;" however it is not sustainable in the long term.

"I think the long-term fundamentals of the euro will still be strong, but it's just how markets react psychologically to a major shock," Harcourt said.

Harcourt also noted the attacks wouldn't have a direct impact on policy change at the European Central Bank.

"I think they'll make it for purely monetary policy issues." Endit