The European Union is arguably the world’s most powerful bloc. But it’s about to lose the United Kingdom, one of its biggest members. Just how and when the UK leaves the union will have implications that will ripple around the globe. Britain + exit = Brexit. It’s the idea that the Brits will leave the European Union. But in a stunning result, the United Kingdom voted to do just that in a bitterly fought in June 2016. Since then it’s been talks, disputes, finger-pointing, and threats.
Taggart & Szczerbiak, (2018).
The UK and the EU finally might have reached an agreement in which they can finalize their split. Economically the EU failed to address the unemployment issue in southern Europe which was as high as 20% of the total population as compared to Germany whose unemployment rate is only at 4.2%. Staying in the EU would mean a continuation of the economic disaster since the other countries did not take the matter with the seriousness it deserves, they believed that Britain will soon follow suit just like the rest of the European countries.
The non-existence of financial relationships was also an issue. Obschonka, Stuetzer, Rentfrow, Potter & Gosling, (2018). The EU did not create the banks in London which are to up to two centuries, decamping the banks would lead to loss of revenue obtained through tourism with London being the most visited city in Europe. Politically, this was influenced by a group formed from both the Labour and Conservative Parties. The group felt that their interest was not well represented by the EU.
This group was mainly against the elite, that is businessmen, politicians and so forth since they felt that the former had lost their will to serve. Crescenzi, Di Cataldo & Faggian, (2018).
In the case that Brexit pools through, European Nations have more to lose on so many fronts. Just under half of the UK’s exports go to the EU. Just over half of its imports come from the other 27 nations in the bloc. All of that is now up for a painful renegotiation. Then, think about diplomacy. Whenever Europe’s done something useful on that front, the UK a serious military power has often been in the driver’s seat. So, the EU is losing a heavyweight. Chang, (2018).
The USA will lose too in that, the UK is also America’s seventh-biggest trading partner. For other nations, the UK is the fifth biggest national economy in the world. Think of the effect Brexit will have on the world’s markets. Even if they don’t collapse, the uncertainty is bad enough. Markets, you see, love stability. And unstable markets equal potentially bad news for your country’s economy. So, my take is British should not leave the EU but instead negotiate on their differences. Cox & Griffith, (2018).