Brexit: Repercussions That The United Kingdom Will Face After Its Departure

Brexit: repercussions that the United Kingdom will face after its departure

Introduction

On June 5, 1975, the referendum about the permanence of the United Kingdom in the European Community was held in the United Kingdom. In that consultation, the population decided to continue in the community. Forty -four years have passed, and the controversy is still in process;After the first referendum, one more was held on June 23, 2016. It was in that year that the voters decided to leave the European Union, from this moment many incidents were raised. One of them was the resignation of the former Minister of the United Kingdom, David Cameron, just months after the vote;In that interview he mentioned:

“I had absolutely clear my belief that Great Britain is stronger, safer and better within the European Union but the British people have made a very clear decision to take a different path and, as such, I believe that the country requires aNew leadership to carry in this direction."

With these statements, it made it clear that although he did not share the population’s decision, it was best to delegate his position to a person capable of carrying out the process of withdrawal of the European project.

We can discuss the extensive list of issues that were created and created due to the departure of the United Kingdom from the European Union just a few months after its vote, but work would have to cover too many aspects, including legal issues;that can be highlighted are wide.

The present work is structured in two parts. The first part, aims to explain what Brexit is. Which have been the causes for this exit to be used. In addition, the consequences that aroused so much political, economic and social. Moreover, mention of article 50 of the European Union Treaty will be made, which is of great importance.

The second part and last part postulates the synthesis of the issues previously raised in the first part. We seek that it is understood what is the problem finally with the situation of Brexit.

As a last point and as a conclusion, it must be understood that this work only analyzes some points that were raised as a result of Brexit, although it focuses on current matters;It is too easy for them to become old because it should be taken into account that events are advancing at a very fast speed, since, there is still no consensus in Parliament despite citizen vote.

What is Brexit?

From the words "Britain" and "Exit", that is "Great Britain" and "Departure";The famous Brexit, as its same name points out, is the voluntary exit of the United Kingdom from the political community that is the European Union. Under choice of their own citizens after a free referendum, this exit has been a political goal pursued by different political parties, civilians and English citizens since 1973. Two years later, in 1975, the first referendum on the permanence of the country in the European Economic Community would be held, with a positive result with respect to the permanence of this. Already in 2016 the second referendum would arrive on the same subject: the permanence of UK in the European Union, on June 23 of that year the result favorable at the exit of EU England;With almost 52 % of the votes, compared to 48 % who advocated permanence.

On March 29, 2017, after getting Parliament to approve it, the United Kingdom informed the president of the European Council the intention that the country had on leaving the European Union, based on article 50 of the Treaty of the European Union, which isA withdrawal clause. In this way, the United Kingdom’s exit process begins, which would last for approximately two years.

Twenty -one days of March 2019, after eight days of expiration of the term for the English country to leave the EU, and given the apparent lack of an agreement, the EU and the United Kingdom agreed to postpone the exit of the country from the political community of the political communityUntil April 12 of the same year, since one day before, on April 11 this departure was re -postponed until October 31 of the same year.

Causes

The European Union being a political and economic community with the aim of joining and integrating the countries of the Old Continent, it is surprising that, after 43 years of belonging this community, the United Kingdom decides to detach itself from this group. Before the amazing result of the second referendum made in 2016 we see ourselves before a new situation of political and economic uncertainty. This exit leaves us a great question: why? In the following paragraphs we will delve into the panorama that could have motivated this decision in order to respond to this unknown.

Apparently, the warnings about the unavailable consequences that the EU’s English country would bring in the economic sphere did not convince the public. Thousands of experts and institutions, such as the IMF and the OECD commented that this exit would bring an economic stagnation, a growing unemployment and the fall of the value of the pound;The Bank of England mentioned a possible recession, in the same way, the Treasury mentioned a budget cut and tax increase. However, studies show that a large group belonging to the English country did not receive benefits as it was included in the EU.

Another aspect related to the reason for the United Kingdom’s exit is related to an exorbitant figure that would apparently be referred to the improvement of the public health system. Approximately 350 million weekly pounds would be the amount in question, a figure although large, unbelievable;being disputed between the Treasury and the British Statistics Office. The "derivation to the health system" would have been one of the great reasons why the English would have marked Yes in the referendum, although the leader of the Independence Party of the United Kingdom (UKIP), Nigel Farage said that this would have beenError mentioning that amount and that the derivation to the health system would have been only a suggestion. However, this statement made no impact, since it was the most remembered number of the entire campaign and served as a powerful reason for the United Kingdom should leave the European Union.

Being migration policies a delicate issue and of great relevance, played an important role in UK’s departure campaign. The issue of migrations strengthened the exit decision since it connected with great amplitude concerns in relation to national culture and identity. The result suggests that concerns on this issue, at least in the last 10 years, would have had a more entrenched impact of what is suspected. Thus confirming that argument of the United Kingdom did not control the number of migrants entered the country during their permanence in the EU. After Turkey’s entrance to the EU, another key point was given in favor of the Leave campaign, especially with respect to the European migration crisis.

Finally, another causal factor of the United Kingdom was the relationship that this country had with the rest of the European community. In 1975, after years of constant insistence and after referendum, the United Kingdom would have joined the European economic community for economic justification. So that, more than forty years being a participant, its ambivalence became hostility.

Impact

Next, the consequences that will fall on the United Kingdom will be explored after the future departure of the European Union, scheduled for October 31, 2019.

Policies

In the political sphere, what was fueled was British territorial integrity, since the triumph in Scotland and Northern Ireland with respect to permanence in the European Union. As for Scotland, in 2014, a self-determination referendum was carried out in which the permanence in the United Kingdom was determined for fear of an eventual independence, while on the other hand, in Ireland of the Northif the union with the English territory;In order to remain in the European Union, union that after the referendum won enough followers, although there are no plans to make a projection in a popular consultation the reunification of the entire island.

At European level, the need to talk about internal problems derived from the referendum subtracted time from the treatment of issues related to European security and foreign policy with the Syrian civil war and the consequent migratory crisis.

It is of EU interest, but also from the United Kingdom, clarify the terms of its relationship as soon as possible to prevent internal issues from continuing their international projection capacity. Either because they want to develop an autonomous foreign policy (United Kingdom) or because you wantof development and containment that both parties may have.

Economic

As for economic repercussions, the departure from the European Union will cut the growth of the country and affect its tax balance and balance between its exports and imports. Similarly, it will harm external financing, of which the United Kingdom has an ‘extremely high’ need, and will put the role of the pound as a reserve currency at risk. The agency also highlights the ‘constitutional crisis’ that could cause a second referendum on the independence of Scotland. As mentions Standard & Poor’s (S&P):

"The result of‘ Brexit ’could lead to a deterioration of the United Kingdom’s economic performance, including that of its broad financial services sector, which represents the greatest contribution to employment and public invoices"

Not only the sterling pound, which has returned to the lowest levels in the last thirty -one years, has been affected by the effects of ‘Brexit’ but the bags of almost everyone, dragged by the banks.

The American investor of Hungarian origin, George Soros, estimated that the United Kingdom’s departure from the ‘Community Club’ could cause a depreciation of the pound between 15% and 20%. Also the Bank of America Merrill Lynch has warned in a report that the "Brexit" ’will trigger a recession in the British country, as well as a slow and slow development in Europe. And all this does nothing but unleash the nervousness of investors.

Banks have been one of the main victims in the bags. In London, Barclays and Royal Bank of Scotland (RBS) have been one of the most affected. In the Spanish Stock Exchange, the losses have been headed by IAG, consortium with British Airways in which Iberia (17.94%) is integrated;followed by Ferrovial (-6.85%), also with great exposure to the United Kingdom.

In addition to the aforementioned, we have the fall in the performance of the British bond to the minimum from 1703, which produced the result of the 2016 referendum. Where it is shown that the 10 -year -old bonds of the United Kingdom have experienced a 1% annual capital letters . The British currency sank at the 1985 level after the referendum.

Social

The result of the referendum in the United Kingdom, in favor of abandoning the EU, has deactivated some inhibitor mechanism of racism expressions, because in three days numerous episodes of xenophobia have been recorded in different parts of the country. Many of them have come to light in different social networks such as Facebook and Twitter, when anonymous citizens related astonished scenes that had suffered or witnessed. Insults, threats and bravuces. There was even an incident when they tried to remove the turban from an Indian citizen.

Premier David Cameron recognized his concern about the growing hostility towards the Polish community in the United Kingdom. A police report has revealed a 54% increase in racism and ‘hate crimes’ against foreigners and minorities since last Thursday.

The episodes of racism, directed mainly against the Poles (the country with more immigrants in the United Kingdom, around 800.000) have multiplied throughout the British geography in 2016 after the referendum. Hostage and hate messages towards the Polish community has been such that ambassador Witold Sobkow has asked for audience at the Foreign Office to express its concern.

"I am sure that British politicians, who are our friends, will join us when condemning these incidents and taking the appropriate measures," said Sobkow."

In another recent incident, the headquarters of the Polish Social and Cultural Association (Postk) in the London neighborhood of Hammersmith, dawned with graffiti and racist painted that were almost instantly erased the police.’It has been an unforgivable crime to indescribable,’ he wrote on his Twitter account the conservative deputy Greg Hands, who preferred not to reveal the message of the graffiti, possibly perpetrated by ultra -right groups.