When news broke that Great Britain had voted to leave the European Union, there was shock not only within the nation, but as well in the Western Hemisphere. Given the long and complex history of the European Union and its integration, many can’t help but wonder why Britain made this decision. Albeit, the EU has always been on thin ice from an economic standpoint, but after years of tensions rising between the states that make up the EU and finally some semblance of complacency, why would Britain now decide to leave?
The EU has always had difficulty trying to integrate the 28 member states economically. A lot of this has to do with the different ethical and culturally different backgrounds that make up the EU. When the EU finally started to make some firm establishments in the early 90s, it seemed that economically the Union would start to prosper. However, it soon became clear that distributing the economics benefits to the somewhat poorer states became a problem. Throughout this, Britain maintained its currency, the pound. After the signing of the Maastricht Treaty, Britain secured an opt-out (which was a prerequisite to the creation of the euro years later) to not convert its currency to the euro.
One of the reasons why Britain did not want membership in the Eurozone early on was because Britain’s economy by the late 90s was not flexible enough to successfully transition into the Eurozone. Yet, after the Global financial crisis of 2008, the idea of adopting the euro seemed like more of a better idea since Britain’s economy was plummeting even further. Even throughout Britain’s economic trouble, the British people have consistently been opposed to the idea of adopting the euro.
This leaves the begging question as to why Britain voted to leave the EU. The only conclusive answer suggests that Britain voted to leave purely for economic reasons. As mentioned before, the EU integrated socio-economy has never really been stable, thus making it terribly difficult for Britain to maintain its footing economically speaking. This decision has not only left the people of Britain reeling but there is also concern as to how Britain’s decision to leave will affect the United States. Even amidst the news of Britain’s exit from the EU, David Cameron, Britain’s Prime Minister, has decided to resign from his position. With Britain’s financial markets taking an extreme hit and the value of the British pound also taking a plunge, only time will tell the repercussions of Britain’s historic decision to leave the EU. In the meantime, most of the world will be wondering what will be next for Great Britain.
Brexit is an abbreviation of "British exit", which refers to the June 23, 2016 referendum by British voters to exit the European Union. The referendum roiled global markets, including currencies, causing the British pound to fall to its lowest level in decades. | Brett, Puzzle, David Cameron, England, Great Britain, Parliament, Prime Minister, United Kingdom, Eu, European Union,
Breaking down 'Brexit'
Brexit is an abbreviation of "British exit", which refers to the June 23, 2016 referendum by British voters to exit the European Union. The referendum roiled global markets, including currencies, causing the British pound to fall to its lowest level in decades. Prime Minister David Cameron, who supported the UK remaining in the EU announced he would step down in October.
Supporters of Brexit had based their opinion on a variety of factors from the global competitiveness of British businesses to concerns about immigration. Britain has already opted out of the EU's monetary union (meaning that it uses the pound instead of the euro) and the Schengen Area (meaning that it does not share open borders with a number of other European states). "Out" campaigners argue that Brussels' bureaucracy is a drag on the British economy and that EU laws and regulations are a threat to British sovereignty.
Mohamed El-Erian, the chief economic adviser at Allianz, wrote in a Bloomberg editorial that a British vote to leave the European Union would impose major instability on top of economic fragility and artificial financial markets.
Popular support for Brexit had varied over time, but the June 23rd vote demonstrated that UK citizens believed that Great Britain can survive without the economic cooperation, trade agreements and partnerships that benefitted the country for the past several years. Brexit is tied in with Scotland's membership in the United Kingdom. Scotland had voted to remain in the European Union, and after the narrowly contested vote, First Minister Nicola Sturgeon said in a statement on the Scottish National Party’s website that she would explore all options to remain in the EU.