You must have heard about Brexit. Are you confused about what it actually means? Know the insights here.
What is Brexit?
Brexit stands for British Withdrawal From European Union. The goal was pursued by advocates, individuals, political parties since UK joined EU (European Union) in 1973. Brexit has become a shorter version of saying British exit from the EU. A referendum (vote) took place on June 23 this year to decide whether Britain should leave or stay as a part of European Union. This was the highest turnout at a UK election after 1992.
What is European Union?
A politico-economic union consisting of 28 countries that are located in Europe forms the European Union. This union was formed so that trade can be carried between the countries without any disputes. This way the countries will also avoid any war with each other. The currency of EU is used by its 19 members. Not just the currency, EU has its own rules regarding everything from transport to mobile charges.
Why did Brexit happen?
There were too many rules imposed on UK business and a high amount of up to billion pounds a year was charged for little in return. According to European Union, people could live and work in other countries without any VISA. This is well-known as free movement rights. UK wanted to reduce the number of people coming here to live and work. Also, they wanted to create a closer union of “United States of Europe”.
What happens now?
• Although, it will take another two years for UK’s exit as per the European Union’s procedure, but it might take longer depending on the negotiations.
• David Cameron has resigned as a Prime Minister.
• Article 50 of the Lisbston Treaty has begun. It is a two-year process where negotiation for a new trade relationship with the EU has to be activated for the process of UK leaving the EU.
David Cameron has resigned as a Prime Minister.
What’s next?
That happened immediately after Britain voted to leave the EU. The victory of Brexit came as a surprise to the whole UK and the Pound suddenly began to tank down right after the results.
The kind of deal of UK with EU after the exit will play a major role in deciding about what happens to the citizens now. If the government opts to limit restrictions for the free movement, the people would have to apply for work VISAs. If the government does not opt to limit restrictions, the people will not have to apply for any work VISAs.
The Prime Minister David Cameron advised the country to vote Remain but was defeated by 52% to 48%. The Prime Minister clearly mentioned in his speech that he believed that Britain was a stronger nation when it was under European Union. The countries like London, Scotland and Northern Ireland had come in support of the Prime Minister. The people have taken a different path and he thinks that the country now requires fresh leadership to take in this direction. He does not want to be the captain to steer the country to the next destination anymore. He believes that his decision to resign is in the nation’s interest to have a stable period from now onwards under new leadership.
Impact on the world
The outcome will for sure influence the economic and political conditions around the world. Brexit is going to affect the economy, free movement and more.
