Brexit: and It's Effects

BREXIT
And its effects

INTRODUCTION
Brexitis the forthcoming withdrawal of the United Kingdom (UK) from
theEuropean Union(EU). In theJune 2016 referendum, 52% voted to leave the
EU, leading into a complex separation process implyingpolitical and economic
changesfor the UK and other countries. The timetable for withdrawal has not yet
been firmly established.
Withdrawal from the European Unionhas been a right underArticle 50 of the

Treaty on European Unionof EUmember statessince 2007. The details of the
process for the UK's withdrawal are uncertain underEU law Article 50, which now
governs the withdrawal, has never been used before.Unless extensions are
agreed, the timing for leaving under the article is two years from when Britain
gives official notice, but this official notice was not given immediately following the
referendum in June 2016. The assumption is that during the two-year window new
agreements will be negotiated, but there is no requirement that there be new
agreements.
Withdrawal has been the goal of various individuals,advocacy groups,

andpolitical partiessince the UK joined theEuropean Economic Community(EEC),
the predecessor of the EU, in 1973, though continued membership of the EEC was
approved ina 1975 referendumby 67% of voters.
What is BREXIT?
The people of Britain voted for a British exit, or Brexit, from the EU in a
historicreferendum on Thursday June 23.
The outcome has prompted jubilant celebrations among Eurosceptics around
the Continent and sent shockwaves through the global economy.
After the declaration of the result, the pound fell to its lowest level since 1985
andDavid Cameron resignedas Prime Minister of this country.
Mr. Cameron said: I will do everything I can as Prime Minister to steady the
ship over the coming weeks and months.
"But I do not think it would be right for me to try to be the captain that steers
our country to its next destination.
The new Prime Minister Theresa May has already set out Britain's positions in
meetings with the leaders of France, Germany and other key European nations.
Mrs May has declared that "Brexit means Brexit" but she has delayed
triggering Article 50 until some time next year.
The use of Article 50 starts the timer on two years of exit talks before the
UK is expelled from the political bloc.
What does Brexit mean for the
economy?
The Brexit victory sent economic shockwaves through global markets
and UK stocks had their worst drop since the finanical crisis.
Emergency steps are now being taken to calm the economic turmoil
after the pound fell to its lowest level since 1985. Britain has lost its
top AAA credit rating.
There is ongoing uncertainty over what will happen when Britain leaves
the EU because it has to make newtrade agreementswith the rest of
the world.
Europhiles worry that foreign companies will be less likely to invest
here and could relocate their headquarters if Britain loses access to the
EU's single market.
Since Britain has voted to leave the EU, it will no longer have to
contribute billions of pounds a year towards theEuropean Union's
budget.
It is being said the Brexit vote is good news for exporters who have
struggled with the high value of the pound.
What will happen to immigration
when Britain leaves the EU?
Eurosceptics say Brexit will allow Britain to take back control of its
borders in order to curb immigration and increase security.
Britain will no longer have to accept free movement of people
from Europe, which Brexiteers say puts pressure on public services
such as the NHS and schools.
Brexit campaigners have said that Britain will be free to impose an
Australian-style points system to better manage immigration and
fill skill shortages here.
But the Remain campaign believes that Brexit will hit the British
economy, which relies on the free movement of EU migrant workers
such as health professionals.
Some Europhiles have also said that Brexit will compromise the
UKs ability to fight cross-border crime and terrorism.
Mr. Cameron even said he suspects that ISIS leader Abu Bakr al-
Baghdadi would be happy when Britain leaves the EU.
What will happen to Britain's place
in the world?
Brexit campaigner believe that British voters have taken a once-in-a-
lifetime opportunity to restore Britain's sovereignty.
Eurosceptics see EU institutions as inherently undemocratic and argue
that laws that affect the UK should not be decided by bureaucrats in
Brussels.
Mr Johnsonargues that the EU has greatly eroded the publics ability to
elect politicians to pass laws that matter to them.
In his victory speech, the former London mayor said that the British
people will now be able to settle their own destiny outside the EU.
Europhiles argue that the UK will now wield less power on the
international stage because it will not be in the room when key
decisions are made.
There are also fears that British workers, expats and travellers will lose
key rights currently enshrined under EU law.

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BREXIT

And its effects

Withdrawal from the European Unionhas been a right underArticle 50 of the

Withdrawal has been the goal of various individuals,advocacy groups,

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