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Brexit News – Exit from the European Union

by Admin 7th September 2019
7th September 2019
Brexit news

Brexit News To Think About – Britain possible exit from the European Union is a topic to contemplate about. Britain exit will result in the European Union (EU) losing a very powerful allay ( UK is a permanent member in UNSC ) and clout in the international arena. Also, other nations may like to follow the same path resulting in disintegration of the EU. Moreover, it will be a blow to the non-performing economies of EU like Greece as in the present scenario their fallout burden will have to be shared by economies like Germany and support from the UK will be gone.

But on the other hand, since UK is not part of the Schengen agreement or have a common currency euro it might not be so bad a situation for EU. Intact other countries of EU can gain from Britain exit as there can be an increase in flow of investments in theirs along with other opportunities which right now they have to share with Britain.

DEAL OR NO DEAL!!!

Britain will lose the European market and other economic incentives it gets by being its member. Also, there can be a possibility of Scotland asking for the same disintegration from the UK but on the other side the immigration problem it is facing because of the refugee crisis will be done away with.

On economic front countries like Switzerland, Iceland and Norway are doing great by being not part of the EU . Britain can also bring about some policy changes to regain its economic growth after its exit.  The GDP will decrease for Britain given less FDI and limited access to the EU’s common market, even jobs in Britain can be affected. But, these shortcomings can be addressed if handled with dexterity just as the case with Norway and Switzerland.

But with clarity, one cannot say that it will be a win-win situation or lose-lose situation. It will depend on after exit policies of both Britain and EU. The present scenario that EU is facing can be a temporary not a long term one and Britain in past has realised its need to be part of it. The lion’s share of UK trade is with EU now. Also, Britain is an active and in some respects an influential participant in the policy making process within the community. According to some analysts exit of UK from the community is neither good for UK or EU.

Background:

Brexit News – To decide whether UK should leave EU, a referendum was held in 2016. The result was UK leaving EU, a move popularly known as BREXIT. But so far withdrawal agreement has been rejected by UK MPs.  European Union is a partnership between 28 countries. To have a cordial relationship with each one can be a difficult task. The idea of Brexit gained momentum after the eurozone economic crisis in 2011. 

Theresa May who has been prime minister of Britain since 2016 resigned in June 2019 under pressure from those who opposed to her Brexit plans. 

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