The Brexit is a commonly used term for the United Kingdom‘s withdrawal from the European Union (EU). The British government led by David Cameron held a referendum on the issue in 2016; a majority voted to leave the European Union. On 29 March 2017, Theresa May’s administration invoked Article 50 of the Treaty on the European Union in a letter to the President of the European Council, Donald Tusk. The UK is set to leave by March 2019.
Brexit victory sent economic shockwaves through global markets and Britain lost its top AAA credit rating. But the Bank of England cut interest rates and took other emergency steps to stop the UK from slipping into a recession, which is a precautionary move. There is ongoing uncertainty over what will happen once Britain leaves the EU because it needs to make new trade agreements with the rest of the world.
Mrs May is set to take Britain out of the EU’s single market in order to end the free movement of EU workers that goes with it. If that happens, Europhiles worry that foreign companies will be less likely to invest here and could relocate their headquarters to the Continent. But Brexiteers argue that EU countries have every incentive keep trading with the UK, which is a large importer of goods and services.
US President Donald Trump has said that Britain is at the “front of the queue” for a US trade deal that has to do with trade, which is expected. The Brexit vote has led to higher import costs but it was good news for exporters who had struggled with the high value of the pound.Now Britain has voted to leave the EU, it will no longer have to contribute billions of pounds a year towards the European Union’s budget. During the referendum campaign, Eurosceptics slammed a Confederation of British Industry claim that Brexit would cause a £100billion “shock” to the UK economy. The Treasury was also accused of “doom and gloom” after predicting that a Brexit would cost households £4,300 a year by 3030, leaving Britain worse off for decades.
Brexiteers have argued that post-Brexit Britain will be free to take back control of its borders in order to curb immigration and boost security. The UK will no longer have to accept ‘free movement of people’ from Europe because it is preparing to leave the EU’s single market. EU leaders have made it clear that Britain would be forced to allow the free movement of EU workers if stayed in the internal market. The Prime Minister advocates a clean break from the EU and rejects any watered-down departure deal that leaves the UK “half in and half out” of the EU.But she has rejected the Brexit campaign’s pledge to introduce an ‘Australian-style points system’ to manage immigration and fill skill shortages here. Pro-EU campaigners believe that Brexit will hit the British economy, which relies on the free movement of EU migrant workers such as health professionals.