 |
BREXIT: The Debate, the Decision, and the Aftermath
EXCERPTS
BREXIT DEBATE: AN UPHILL BATTLE
The Brexit debate divided the Britons, forcing them to take a position for either the ‘Britain Stronger in Europe’ or ‘Vote Leave’ campaigns. Many of the British voters were concerned about the size and reach of the EU bureaucracy and the diminishing of British influence and sovereignty, as up to 55 percent of Britain’s laws and regulations were set by the EU. Brexit supporters accused the EU of becoming a suffocating bureaucracy with ever-expanding regulations that hindered British innovation and competitiveness. Disgusted with the dominance of the EU, Boris Johnson (Johnson), former Mayor of London, said “This is a once-in-a-lifetime chance to vote for real change in Britain’s relations with Europe. This is the only opportunity we will ever have to show that we care about self-rule. A vote to Remain will be taken in Brussels as a green light for more federalism, and for the erosion of democracy.” Reportedly, many Britons were of the opinion that “the European Union has grown into an undemocratic and unaccountable federal beast.” The Brexiteers claimed that leaving the EU would be an opportunity for Britain to liberate itself from the dominance of the EU, both politically and financially. They believed that Brexit would allow Britain... . |
|
AFTERMATH OF BREXIT
On June 24, 2016, Britain voted to leave the EU. The ramifications of the poll result were felt not only across political and economic establishments around the world, but also in the global stock markets, which lost about US$2 trillion in value. Alongside the fall in the value of the pound, the euro witnessed a drastic fall against the dollar amidst fears of the outcome of Brexit on the Eurozone economy...
FAVORING BREXIT
Contrary to the claims of many commentators, the Brexiteers advocated that the impact on trade would be relatively small and felt only in the short period. They argued that Brexit would enable the UK to remain free of the cost of regulation and red tape imposed by Brussels and allow it to negotiate its own trade deals with the rest of the world and the EU...
ALTERNATIVE POST-BREXIT MODELS
Analysts believed that the post-Brexit trade landscape of the UK would depend on its future trade arrangement with the remaining 27 EU member countries. POLITICO opted for five possible models – the bloc’s arrangement with Norway, Switzerland, Turkey, Canada, and the World Trade Organization – that Brussels would offer in its future relationship with the UK following the British exit..
WAY FORWARD
The post-Brexit scenario assumed that the UK would have to follow the 2009 Lisbon Treaty and undergo a two-year period of negotiation on the terms and conditions of its future association with the EU before leaving the bloc...
EXHIBITS
Exhibit I: Britain’s Trade with EU Members
Exhibit: II: Treasury Analysis of the Immediate Impact of Brexit
Exhibit: III: Longer-term Effects of Brexit on Real GDP in the United Kingdom
Exhibit: IV: Single-Market Lite Arrangement
