Brexit(Britain’s exit) from the European Union(EU)
What is the European Union?
The European Union – often known as the EU – is an economic and political partnership involving 28 European countries. It began after World War Two to foster economic co-operation, with the idea that countries which trade together are more likely to avoid going to war with each other. It has since grown to become a “single market” allowing goods and people to move around, basically as if the member states were one country. It has its own currency, the euro, which is used by 19 of the member countries, its own parliament and it now sets rules in a wide range of areas – including on the environment, transport, consumer rights and even things like mobile phone charges.
What is happening?
A referendum is being held on Thursday, 23 June to decide whether Britain should leave or remain in the European Union.
Why is a referendum being held?
Prime Minister David Cameron promised to hold one if he won the 2015 general election, in response to growing calls from his own Conservative MPs and the UK Independence Party (UKIP), who argued that Britain had not had a say since 1975, when it voted to stay in the EU in a referendum. The EU has changed a lot since then, gaining more control over our daily lives, they argued. Mr Cameron said: “It is time for the British people to have their say. It is time to settle this European question in British politics.”
UK Treasury’s paper
- It has published a paper which weighs in 3 alternatives after Brexit from EU in long term
- The alternatives are based on different degrees of access to EU and non EU markets
The paper does not exhaust all possibilities even if only “trade policy” is taken into consideration
The paper depends mainly on domestic policy and many other things, and these factors are independent of the choice on Brexit
Euro zone’s future isn’t bright also
- Many member suffer from unemployment and persistent slow growth
- It is just monetary union(no political or fiscal union)
- No structural reforms in sight, the euro system is weak
- It goes from a crisis to crisis and improvising as it goes
EU after Brexit
- Preventing any further defection(any other member leaving)
- EU should provide greater support for its weakest members
- Having lost Britain(most aggressively defiant member) the balance of opinion would shift in favour of closer cooperation
- It might be good for EU with less unemployment, greater economic resilience
- EU neighbours would prosper too and it would be good for Britain.
Britain after Brexit
The exit might have consequences on the political structure of the parliament, which would in turn have effect on its policies after Brexit, thus there is no knowing with certainty that the exit will have a bad effect on the UK economy.