Impacts of Britain’s Exit from the European Union
Instructions: – Why is it a bad idea for Britain to leave the EU?
Impacts of Britain’s Exit from the European Union
Introduction
The European Union(EU), refers to an economic and political organization that consists of 28 member states principally located in Europe. With the recent exit of Britain from EU, has reduced the number to 27. EU has majorly developed a single market among its member states and has established policies to ensure free products, service, capital, and people mobility within is a single market (Zeff, 2006). Britain Exit, popularly referred to as Brexit, was an initially a bad idea as it will subject Britain to economic and political implications regarding trade relations and political ties.
Economic Implications
Economically, Britain will deteriorate as it will have to cut down on its spending and increase fuel duty and income tax. As described by Micklitz, a single market territory does not consist of any internal borders or regulatory barriers to a free market (Micklitz, 2014). Furthermore, single market aids improved efficiency, cutting down of its prices on goods and services and increases the quality in its member states. Britain’s exit will automatically result in immediate cost saving as it will not contribute to the EU’s Union Budget. Moreover, Britain will have to reinvent itself to a supercharged economy that will need time after undergoing different economic disasters (Brinded, 2016). Brexit will lead to a reduction in immigration rates in Britain resulting in more jobs in the nation consequently initiating the country to increase wages.
Milne (2011) suggests that Britain will lose its negotiating power in the market across Europe and other states like the US. Apparently, Britain benefited from the free trade deals between the Great Eight nations(G-8) and the EU itself. EU being a single market does not impose export and import tariffs on its member states. Therefore this was a bad idea for UK to tap out from EU as they will lose EU trading rules. Additionally, leaving the EU will expose the nation to increase its borrowing by between 20-40 billion euros as they will require an additional year or two of severity at the current rates of spending cost cuts or rather leave them to borrow highly cultivating massive debts (Brinded, 2016).
Political Implications
The US had already created a bridge to the EU through the UK. This linkage will now break after Britain’s recent exit from the EU. El-Agraa suggests that such a break will alter the political ties between the UK and the US since the US will opt for stronger alliances from EU member states hence a burden to the UK colony, USA. Additionally, Brexit will affect the relationship between the UK and other EU countries. Therefore, it is predicted that the UK will now act as a detractor to the NATO-EU cooperation. Also, Brexit idea was absurd in the sense that it will result in UK fragmentation as Scotland are putting more efforts to break from the Kingdom and rejoin the EU. It is evident that businesses and inhabitants of the international metropolis of London felt resentful after UK’s action to exit the EU (White, Amato, & Vollmer, 2016).
Conclusion
It is evident that Brexit actions will significantly impact economically and politically on the UK and its relations such as the US. Close allies of UK will fall out and will expose the UK with detrimental political effects. The idea was good at some point regarding UK being exposed to terrorism as a member state of EU, but the negativities with its action are adamant and absurd in its economy and political ties.
Bibliography
Brinded, L. (2016, June 16). Here is an avalanche of reasons why Britain should stay in the EU. Retrieved August 11, 2016, from Business Insider: http://www.businessinsider.com/eu-referendum-reasons-for-voting-against-a-brexit-and-staying-in-eu-2016-6
Buckle, R., Hewish, T., Hulsman, J. C., Oulds, R., Mansfield, I., & Affairs, I. o. (n.d.). Brexit: Directions for Britain outside the EU.
El-Agraa, A. (. (2015). The European Union Illuminated: Its Nature, Importance and Future. London: Springer Publishers.
Micklitz, H. W. (Ed.). (2014). Constitutionalization of European Private Law (Vol. XXII). Oxford University Press (UK).
White, S., Amato, N., & Vollmer, S. (2016, June 15). Businesses consider the effects of UK decision to leave the EU. Retrieved from CGMA Magazine: http://www.cgma.org/magazine/news/pages/effects-of-brexit-201614728.aspx?TestCookiesEnabled=redirect
Zeff, E. E. (2006). The European Union and the Member States. Boulder: Lynne Rienner Publishers.