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Brexit Issue-Causes and Consequences
Brexit Issue-Causes and Consequences
Brexit Issue-Causes and Consequences
INTRODUCTION
On June 23, 2016, the United Kingdom voted 52% to 48% to leave the
European Union (EU). This famously called the BREXIT REFERENDUM was
a startling development for the European continent and largely for the entire
world. It destabilised the financial markets, initiated global debates and paved
way for the inception of fresh relations between the UK and the EU. It
highlighted the dwindling position of the traditional political parties of Britain
and their nuances. Although the referendum vehemently and in stark voices kept
forth the demand for retreating from the EU, the ‘remain’ voters presented some
significant arguments against the ‘leave’ voters. In this article, we shall be
turning our attention to the Brexit Issue, its causes and its consequences.
RELATIONS BETWEEN THE UK AND THE EU
The UK joined the EU in 1973 when European Union was European Economic
Community (EEC). The EU is an ‘intra-continental’ political and economic
union which has 28 countries as its member states. It aims at building a strong
European economic force in the world by providing its member states a
common market with a standardised currency, measurements and weights which
is complemented by free trade and wider immigrant acceptance. The aim is to
primarily engage its members into high economic viability. However, in order
to be eligible to gain EU membership, the states have to open their economies
and political borders accordingly. UK, being the member state, had to undergo
the same process to employ the financial gains for herself. Interestingly,
scholars suggest that this integration between the UK and the EU was much
more differentiated as the agreement was not signed as willingly by Britain as
other countries which further intensified the wrangle.
THE BACKGROUND AND CAUSES BREXIT
The ‘remain’ side of the referendum also presented suitable arguments which
focused on destabilising the country’s economy, their personal finances, self-
interests if UK left EU. These appeals were further fuelled by the Treasury
claims that each household would be £4,300 worse off annually if the country
voted for Brexit. The IMF too warned Britain that leaving EU would cause
severe harm to the British Living Standards and massive inflation. However, the
Remain camp failed to grasp the growing concerns of immigration that over-
burdened the argument of economical cost of leaving EU. Considering all the
uprising demands that bubbled up in past few decades, the Brexit Referendum
was held on June 23, 2016. The Leave camp won with 51.9% of the votes with
local authorities and Labour as well as Conservative masses reporting majority
vote on the Leave Side. The Remain side lost with 48.1% of the votes.
CONSEQUENCES AND CONCLUSION
After the big day, the process of withdrawal from the EU began to take its form.
Although the decision was crystal clear but the official paperwork and the
giving up of membership is in itself a long procedure. Therefore, a transition
period was set forth to give both sides breathing spaces to negotiate the future
course of action. While a new free trade agreement was considered to be
important as when UK will leave EU, it will simply restrain itself from the
single market and customs union at the end of this transition. To continue tariff-
free movement of British goods, services and people to other European
countries, Britain is negotiating terms and conditions with the EU. Apart from
trade, law enforcement, data sharing, aviation standards, access to fishing
waters, supplies of electricity and gas, licensing of medicines are some other
aspects of UK-EU future relationship that are being discussed. The transition
period and negotiations form the BREXIT DEAL which is one of the main
highlights of the whole Brexit issue. Although the result of referendum came in
2016 but still Britain has not withdrawn from EU due to the constant
negotiations and heated parliamentary debates carried out by changing
governments in power. While most of the negotiations were done by the
Theresa May government, some major parts were discussed by Boris Johnson.
Brexit was earlier meant to happen on 29 March 2019, but the deadline was
delayed twice after which a fresh date of January 31, 2020 was released. This
deadline was, perhaps, again revoked and now the latest deadline is December
31, 2020 when the world will witness the awaited BREXIT.