The Consequences of the Brexit

Tuesday, October 16, 2018

The Consequences of the Brexit

It all started with a referendum on June 23, 2016, when the majority of British people voted for the Brexit (in other words “British exit” from the EU), which means to leave the European Union (EU). The benefits of belonging to the unified monetary body no longer outweighed the costs of free movement of immigration. Prime Minister Theresa May submitted the Article 50 to the EU on March 29, 2017. This means, that Britain has time until March 29, 2019, to negotiate these six main points:

https://www.google.com/search?q=brexit&rlz=1C1CHBD_deUS761US761&source=lnms&tbm=isch&sa=X&ved=0ahUKEwjh15PvvIzeAhVI-6wKHXr8A8AQ_AUIDygC&biw=1584&bih=772#imgrc=GtkdfgxlkEmaiM:

1. The U.K. does not want to continue allowing unlimited EU immigration.
2. The two sides must guarantee the status of EU members living in the U.K., and vice-versa. The same applies to work visas, which are not currently required.
3. The U.K. wants to withdraw from the European Court of Judgment.
4. The U.K. wants a "customs union" with the EU. They will not impose tariffs on each other's imports. They are free to tax imports from other countries.
5. Both sides want to continue to trade.
6. The EU will require a cash settlement from the U.K. to meet existing financial commitments. Recent negotiations put the figure at 40 billion to 55 billion euros.

For the Brexit to be successful, the withdrawal plan must be approved by the European Council, the European Parliament and the 20 EU countries with a majority of 65 percent of the total population.

If the Brexit is successful there will be changes and consequences for Britain and the EU.

First of all I want to show the advantages for Britain after the Brexit. The main point and main advantage of the Brexit for Britain is that they can stop the flow of people from the EU and prohibit the entrance of refugees from Afrika and the Middle East. The United Kingdom will also be able to tax without EU guidelines. There also won´t be any EU membership fees anymore.

Now I will talk about the disadvantages of the Brexit for Britain. The major disadvantage for Britain after the Brexit is that the growth of the UK will be slowed. But not only the growth will be slowed, Britain will also have to pay an extra 3 million pounds over two years because of the exit fees. Another major disadvantage for Britain will be the loss of tariff-free trade status with all other members of the EU. Exports of British goods will be more expensive, because of the tariff raises. As a result British products will be higher priced and therefore less competitive than exports from other EU members. At the same time prices for import goods will also rise. Through this rise of import prices an inflation would be created and would lower living standards in the United Kingdom at the same time.

Secondly I want to show the consequences of the Brexit for the EU. With the Brexit vote, anti-immigration parties could gain strength in the EU. If these parties get strong enough and gain enough followers in France and Germany, they could actually force an anti – EU vote. If would of those two countries would leave it would loose it most robust economies and the EU would be very likely to dissolve.

Dominik König