BRITAIN'S EXIT FROM EUROPEAN UNION (BREXIT) - A SHORT REVIEW







Previous Month the whole World discussed about the Britain’s exit from European Union. World’s major stock markets fall down due to the BREXIT. UK independence Party (UKIP) leader Mr. Nigel Farage, The ruling Conservative Party leader Mr. Boris Johnson and number of leaders from both Conservative Party and Labor Party have supported the BREXIT .What was the factors which lead Britain to exit from EU? Why British People voted in the favor of BREXIT in the referendum..? Why the Countries like USA and their allies and the countries like India stood against BREXIT..? What changes will create BREXIT in both British and European Economy.? How BREXIT will affect the political attitude of other EU Nations..? I am going to discuss the factors which lead to BREXIT


First of all we have to know what is the structure of EU and the history of EU. EU founded in 1958 as the creation of European Economic Community (EEC) according to the Treaty of Rome signed in 1957 at Belgium by Six Nations and later in 1967 the EEC referred as European Community (EC).
United Kingdom joined in EC in 1973 through a referendum and they got the membership with Republic Of Ireland and Denmark. In 1981Greece joined in EC and in 1986 Spain and Portugal Joined. According to the Schengen Agreement of 1985 created an open border without passport in the EC nations. According to Maastricht Treaty of 1992 the EC changed their Name to European Union (EU) the new Name came into force in 1993. Up to 2013 the number of member became 28. The customs unity made both the freedom on borders for man and transporting goods and trades. According to the open Border one non-European nation can make trade to all the EU countries by making trade treaty in any one of the member country.  In 1998 eleven members of launched a new common currency and the new currency came into force on 1 January 1999. This common currency using zone called as Eurozone. This Eurozone later seeded the financial tensions in EU countries.
At the end of 2009 some Eurozone countries fallen to a big debt crisis. The countries like Spain, Portugal, Italy, Greece and Ireland. In these countries the national banks were failed to control the result of easy credit conditions during 2002- 2008. This act encouraged high risk lending and borrowing. The economy of these countries fall down due to both the private debts and property bubbles. In Italy, Spain and Portugal fall to the crisis due to over expenses. And Ireland due to their property bubbles. Irish national Banks lost around 100 billion euros through the guaranteeing of property bubble. The European Central Bank (ECB) introduced financial supports to these countries. But ECB imposed some bail out programs to these countries. This bailout programs including the increasing interest rates and lowering expenditures. This resulted a large rate of unemployment and other crisis to the common people of these countries. ECB’s decision of giving financial support to these countries made a new attitude among the people of other European nations. They tremendously started to think why they have to bear the debt countries..? Why they have to use their country’s funds to the debt countries who fall down due to their over-expense..? These kind of questions raised in Germany, the most financially stable country of Eurozone.
In 2012 a referendum in all Eurozone countries to deciding to give financial supports to Greece (it is the rule of EU and Eurozone, before giving financial support to any country, a referendum should pass in all member nation’s parliament). In this referendum Netherlands voted against the decision. In most of the member countries people shown this types of repines against EU.
Due to this crisis Germany and France tried to bring Britain to Eurozone. But Britain refused to join. The migrants flow from the poor eastern European countries and Asia regions resulted a repine among British people. They opposed to spend their country’s fund to these migrants and also they complained the migrants are stealing their jobs and they feared the infiltration of terrorists in the form of migrants.
                                           According to some economic and political viewers USA opposed BREXIT more because in the case of US Britain was their Trojan Force in EU. Britain acts as a representative of US and Britain was making treaties with the EU Countries for protecting the US interests. Britain Acts as a bridge to EU for trade and transport for other countries like India also. In Commonwealth countries it was easy to make trades with other EU nations by obtaining a trade permit in Britain. And they travel across all the EU nations by obtaining a British Visa.
Cameroon requested to EU for open market but EU told to Britain they can get open market if Britain allows open free border travel to EU countrymen. But Britain can’t allow this because some members of the ruling Conservative Party like Boris Johnson etc.
IMPACTS OF BREXIT IN OTHER EU NATIONS:-
1.     Ireland: - The BREXIT could affect the trade and migration across Ireland’s borders with UK, till now Northern Ireland is a part of United Kingdom (UK). Persons from The Republic of Ireland can move freely to Northern Ireland earlier but in the case of BREXIT a border will be managed between Northern Ireland and Republic of Ireland. This could affect the trade between the Irish areas.
2.     Netherlands: - BREXIT may fuels the Anti-EU politicians in the next Dutch election, now they would seek a momentum in their anti-EU activities.
3.     France : - The  National fronts may take the BREXIT as an advantage in their upcoming Presidential election in 2017
4.     Spain : - BREXIT would fuels the Euroscepticism in Spanish Politics
5.     Germany: - BREXIT would stir up the anti-EU feelings across the nation and it may affect in Federal elections in 2017.
6.     Poland and Hungary: - BREXIT will spark the Euroscepticism in these countries especially in right wing ruling Hungary
7.     Nordic Countries (Denmark, Sweden and Finland); -They would loss Britain as a pro- free trade ally in the EU.

IMPACTS OF BREXIT IN BRITAIN:-

1.     Scotland: - In Scotland the people voted Ito stay in EU, after Britain’s decision to exit from the EU it may reignite call for referendum on Scottish independence again.in the referendum of 2014 EU has not supported Scot land but after the BREXIT the EU may support the Scottish Independence.
2.     Northern Ireland: - In Northern Ireland also people voted against BREXIT. The BREXIT may rise the political tensions between Northern Ireland and Great Britain.
3.     Rise of Racism: - EU always strongly stood against racism in their member nations, European Parliament has controlled directly such great issues. If Britain’s exit from EU will loss the control over the Racist movement across Britain.
BREXIT will keep 0.5% of their GDP with them. Because every year the member country should pay 0.5% of their GDP to EU. Now Britain hasn’t require to pay this amount. Some Political Viewers said that Cameroon showed a hurry in the referendum. The Economists Says the market fall and financial crisis due to BREXIT will not affect longer. The problems will rise for a short interval. The Remaining Countries also stand in that Conclusion.

                                       






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