Brexit: How, Why, What and Now What?

BREXIT: how, why, what and now what?

Until 24 June 2016, Britain was a part of European Union (EU), a group of 28 countries, but with 51.9% votes in favour of leave, Britain has parted ways with EU. BREXIT, a term coined from BRitains EXIT, have shocked the world and revealed a divided country.  England and Wales favoured leave but results of Scotland and Northern Ireland have shown otherwise.

During election campaign in 2013, David Cameron, Prime minister, had promised an IN/OUT referendum for Brexit. Many people in Britain believe that EU is making inroads into British sovereignty. People think that EU has changed since it was formed and that it was impacting daily life.  Key issues for Britain were immigration, security, employment, and trade restrictions which led to referendum.

With uncertainty about the Britain’s future, investment activity will take a hit and there will be an immediate slowdown of growth. Half of the Britain’s exports go to EU countries and brexit will have a impact on its trade. Effect of Brexit on jobs depends on trade, investment and immigration and nothing can be predicted as of now. Britain will regain its control over its borders and this can reduce immigration. This allows them to keep a check and control on people and improve security regarding terrorist attacks.

EU members have to pay a membership fee to EU and UK was one of the largest contributors. This will have a direct impact on EU’s revenue. Brexit has sparked a hope among other EU members who wish to leave EU and Europe may witness more referendums in the future. Brexit has raised questions on the very existence of EU.  However, favouring ‘leave’ can cause divorce of Scotland from Britain and there have been signals for the same. Scotland favoured to remain in EU with 62% votes and may hold another referendum to decide whether to go independent or stay with Britain.