Britain's exit from the European Union has not only revitalized current members but it has also inspired countries outside of the bloc to apply for membership, the International Monetary Fund's managing director, Christine Lagarde told CNBC Tuesday.
"It's quite fascinating to see this sort of parallel track of those existing members of the EU suddenly being revitalized, rejuvenated and re-encouraged in the face of what they regarded as the adversity of one member wanting to jump ship," Lagarde said on Tuesday.
Britain narrowly voted to leave the EU in a referendum on June 23 last year, an event that shocked financial markets as well as commentators across the globe. Meanwhile, formal talks between the U.K. and EU's negotiators kicked off in June this year shortly after British Prime Minister Theresa May failed to increase her parliamentary majority in a snap general election.
British and EU leaders now have just over a year and a half to negotiate and agree a deal, which will then go to a vote before the European Parliament.
When asked whether countries such as Serbia and Montenegro – both of whom are hoping to become members of the EU – could endanger the future of the bloc, Lagarde stressed the EU had been reinvigorated by the Brexit vote.