Table of Contents
What is brexit?
Britain and exit
What is BRITAIN?
What is EU?
- An economic and political partnership involving 28 European countries.
- Countries which trade together are more likely to avoid going to war with each other.
- “Single Market” allowing goods and people to move around
History
- UK joined the European economic community in 1973
- Referendum in 1975- YES
- 2014 EU parliament elecetion- UKIP -25%
- 2015 GENERAL ELECTIONS in UK-12%
- Conservatives promise a referendum
Why demand for exit?
- EU charges billions of pounds a year in membership fees for little in return
- Too much red tape
- Robs members of control over their own affairs – law making power
- Immigration affecting UK hard
- Britain could reinvent itself as a Singapore-style supercharged economy.
Why stay?
- Selling things to other EU easier
- Flow of immigrants, most of whom are young and keen to work, fuels economic growth
- More secure as part of the 28 nation club
- Bargaining power at world table
- Businessess- easier for them to move money, people and products
The Referendum
- A vote in which everyone of voting age can take part – was held on Thursday 23 June, to decide whether the UK should leave or remain in the European Union.
- Turnout 72%, more than 30 million people voted
RESULTS
51.9 % – LEAVE
48.1 % – REMAIN
Huge regional disparity
Ramifications
David cameron resigns
Theresa May – new PM
Nigel Farage resigns as UKIP head
Markets collapsed
What next?
- Article 50 of Lisbon treaty of EU
- Two years notice period for withdrawal
- David Davis – secretary of state for Brexit
- Law framed in 2009-never used
- Referendum not legally binding-just an opinion poll
- Uncertain path and future!
Why is it such a big deal ?
- UK’s future
- Scotland
- Northern Ireland
- London
- UK Can leave EU and join EUROPEAN ECONOMIC AREA (EEA)
IMPACT ON INDIA
- Lose a close ally in EU
- INDIA EU FTA deal
- Gateway to Europe-Companies operate from UK (for EU)
- Look for New markets- India,Asia
- Pound fell but markets fell too
- Long term- negative or postive??
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By Dr. Mahipal Singh Rathore
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