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.
Comments