Brexit and implications- Basics ought to be known

As June 23,2016 is approaching, media is getting filled with news on Brexit.  Brexit stands for the two words “British Exit” indicating the chances that Britain may withdraw from European Union ( EU). To decide on Brexit, Britain is holding a referendum on in-out from EU membership on June 23, 2016. 

brexit

What is meant by Brexit?

David Cameroon, leader of the Conservative Party, has been the Prime minister of the country since 2010. His first term was till 2015. There has been a demand from the people of the country for exit from EU for quiet long. He has been in support of remaining in the EU. Even then, in 2013 he announced to conduct a referendum on the matter before 2017, if his party was re-elected to power. This came in the back ground of challenges from The UK Independence Party that has been vehemently opposing continuation of Britain in EU. Some of the prominent leaders of Conservative party itself were of the view of quitting EU. His party was re-elected into power and as per the promise the referendum was announced.

What is European Union?

European Union is an economic and Political alliance of 28 European Countries. It was formed for economic co-operation after the Second World War.  It gradually evolved to a single market with free movement of people and goods within the group countries. It has own parliament and  own currency, Euro, which is being used by 19 member countries.

brexit 1

What is a referendum?

A referendum is, is almost similar to an election. Unlike in an election, the voters have to give   a "Yes" or "No" answer to the matter in question. The side that gets more than 50% of votes cast emerges as winner. 

In this particular referendum on whether to continue or not in the EU, following are the eligibility conditions for participating in the nationwide referendum.
•    British, Irish and Commonwealth citizens who live in the UK
•    Britons who have lived abroad for less than 15 years
•    Only people aged 18 and over will be allowed to cast their vote.
•    Members of the House of Lords and Commonwealth citizens in Gibraltar (They have no voting power in General elections)

Who are in favour of leaving EU and why?

The UK Independence Party that won nearly 13% of votes in general election  strongly demands quitting EU. Around Half of Conservative MPs and Several Labour MPs are also in favour of leaving EU. 

They are of the opinion that the progress of UK is hampered by EU through too many rules on business and that EU charges billions of pounds every year as membership fees for negligible return for UK. They also want to reduce the inflow of people from other countries as the EU allows free movement within member countries. They oppose creation of a “United States of Europe”.

Who are against leaving EU and why?

The major supporter of UK continuing in EU is Prime Minister David Cameroon himself. The Conservative Party is taking a neutral stance whereas Labour Party  and SNP are in favour of continuation.  US president Barack Obama and other major nations like France and Germany are of the view that UK should continue in EU. 

They are of the view that EU makes business with other countries easier and that the flow of young immigrants to UK encourages economic growth.  They also argue that Britain’s bargaining power in the world would reduce and that they are more secure as part of 28 nation club. 

The opinion polls indicate that as of now, the British public is evenly spilt on the issue. 

What could be the implications of final decision?

No nation has so far left the EU and hence it is difficult to predict what would happen if referendum is in favour of Brexit. 

•    Whether people of UK could move freely and whether UK would introduce work permit for other EU nationals will depend on the agreement to be reached between UK and EU after referendum. 
•    UK GDP may go down , if UK fails to reach a favourable agreement with EU
•    UK will have to enter into better trade agreements with nations outside EU like India, China, USA, Indonesia etc for ensuring economic growth.
•    It will be up to the UK Government to decide whether to stick to Pound or to switch over to Euro. 
•    The ripples could be felt across the stock market of other countries. 
•    Exchange rates of currencies in relation to Pound may undergo changes depending on the strength of the economy of each country. 
•    May affect the economic conditions of remaining 27 nations of EU

YesJay

How does flooding affect the animals living underground?

Do the free floating aquatic plants have roots?

Summary
Article Name
Brexit and implications- Basics ought to be known
Description
As June 23,2016 is approaching, media is getting filled with news on Brexit.  Brexit stands for the two words “British Exit” indicating the chances that Britain may withdraw from European Union ( EU). To decide on Brexit, Britain is holding a referendum on in-out from EU membership on June 23, 2016. 
Author
attemptNwin.com

Leave a Reply

Your email address will not be published. Required fields are marked *


*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>