The results are announced, Britain is the first member to terminate its association with the European Union.
The result declared today is a verdict from millions of citizens who cast their votes on 23rd of June, 2016. The voting commenced after four long months of campaigning which involved representatives from both the sides of the fence awaring people about the aftereffects of Brexit.
The voting ratio is 52:48 for “Leave EU” to “Remain in EU”. The exit of Britain is considered to be a mighty blow for the European Union. The officials fear a chain of causation which can lead to other members in the union to hold a referendum as well. This means Brexit has the potential to tear Europe apart, leaving a lot of the burden on the countries like Germany and France who are already at loggerheads.
The European Union has been facing a difficult time with migration crises, economic instability, and an increase in terrorism. What led Britain to hold a referendum?
What prompted British citizens to vote in favour of Brexit is to regain the complete sovereignty in the entire nation, and Britain will not have to comply with EU regulations which are mostly constituted in Brussels and pushed by the consensus. The UK being a net contributor to the EU budget can now freely contribute wholly to its own growth and development irrespective of any regulations followed under the membership of the European Union.
This Brexit can be termed as the freedom from the burden of the EU’ regulations costing the British economy as much as 600 million pounds per week. With it, the empowerment towards Trade can be attained and it will be able to conduct its own negotiations with other countries when earlier, about half of the UK’s overseas trade is conducted with the EU.
The biggest wave to the Britain comes from that the UK will now be able to have its own regulation for work going to the high number of migrants to the country as EU citizens have the right to work in any member state, it had significantly pushed down wages for British workers, and majority of the population suffered due to this loss which comes prior to a living.
Migration being one of the biggest issues today in Europe, Britain did not wish to be swamped by foreigners. Moreover, Britain felt tethered and weighed down by growing issues in Europe, complicated rules, and unnecessary membership fees.
Although, there were plenty of advantages too when it came to staying in EU, for one, the unity of member countries and the trade benefits would have continued to be the pillars of development for Britain.
The Brexit has caused a global wave of turbulence causing markets everywhere to plunge deeply. Indians thought they would be left safely hedged from Brexit, they were proved wrong this morning when the Stock market crashed.
Major business houses are seeing heavy losses owing to the divorce of Britain with EU but it will help lesser regulations at the workplace, which could potentially create more jobs and so the more investment can be brought to the nation. Many of the Indian businesses which have their European Headquarters in Britain, with regards to ease of doing business in the region, are now stuck in a situation that is estimated to dig deeper in their pockets.
There are growing concerns that the conditions in Europe with respect to Brexit and, in Asia in accordance with China’s economic turmoil can have a long lasting effect with a lot of collateral damage. The domino effect on the world economies can also lead to recession. Although Dollar has gained some out of this development, Pound is shedding continuously.
Not just Indians, but the world audiences assumed that a “Remain” verdict would be cast which would cause minor pitfalls in Britain. Not many had the sight that an Exit could catch them by surprise and shock, which leads to panic selling in the market, hence weakening it.
What can be analyzed is that this market crash is merely a reaction to the global news by Indian Stockholders. Indian officials claim it is only a temporary medium sized effect in the economy and that there aren’t many reasons to worry for us, Indians, as we are not directly related to the crises in any way.
Another note on the positive side – in the current year, the India-UK bilateral trade is marked at $14.02 Billion, which is quite significant as compared to India’s trade numbers with other European countries. Once things have settled down a little, people can trust the successful partnership that India has maintained with the UK to yield good profits.
With the reports coming in that the British Prime Minister David Cameron decided to step down and quit after the next three months, he says that “negotiations with EU need to begin under new PM.”
(With inputs by Ayush Garg)