Britain remaining in EU best for Australia: FM

It's in Australia's interests for Britain to remain part of the European Union due the close knit relationship, but ultimately the decision remains with the British people, Australian Foreign Minister Julie Bishop said on Monday.

Speaking at the Lowy Institute for International Policy, Bishop said those interests lay in the close economic, strategic and historic ties, but importantly also in the security and intelligence relationship.

"To have a like-minded partner within the European Union would be in Australia's interests," Bishop said.

Though Australia's direct exports into Britain and the European Union amount to only a modest 2-percent and 3-percent respectively, Australia's links between the equity markets however are much stronger.

Bishop, like all Australian traders, is expecting heightened volatility if Britain does indeed vote to leave the European bloc, thus increased instability will have fallout.

In a speech directed to the local populace given what is amounting to a close election on July 2, Bishop warned Australia's economy is still fragile and must adapt to the changing global economic conditions. Endit