Last week, we have been witness to the “Brexit”, or rather, the decision via popular vote of the greater population of the United Kingdom to exit from European Union’s membership. The British Government held an election through a referendum as to the question of whether or not its citizen wants to remain or leave the European Union (EU). The result was a resounding “Leave”. This prompted their current Prime Minister, David Cameron, to submit his resignation for his position to be effective come November. The British Prime Minister strongly believes that remaining to be a member of the European Union was in the United Kingdom’s best interest. Thus, along with the majority votes of citizens to leave the EU, he also, believes that he is no longer capable to lead the country as Prime Minister as he believes he is not quipped for the job.
In fact, the whole effect of Brexit will not be felt right now. Its effect will only be seen in the years to come. Fears and speculations are just that, as it is yet to be seen, felt or observed in real time. There are no precedents in this, so the predictions of the effects in the economy are not clear-cut.
The Brexit was the single best decision that the Brits have made in 50 years.
Brexit would immediately result in an immediate cost saving. Leaving EU will have Britain no longer required to contribute to the EU budget. Last year, it was reported that UK had contributed to around £8.5bn which is about 7 per cent of what the Government spends on the NHS each year.
The EU is considered as a single market and the Brexit will risk on losing the negotiating power on trade deals between EU and other world powers. However, it gives Britain the opportunity to establish its own trade agreements. With this direction, Britain could fair just like Norway which is not bounded by the EU laws. Norway has only access to the single market but it involves law on areas such as agriculture, justice and home affairs which are covered with EU laws.
Some Brexit supporters had proposed to consider the Canada-style trade agreement. Canadians were able to achieve a deal based on trade and at the same time getting rid of tariffs. There are also ‘eurosceptics’ who argue that the vast majority of small and medium sized firms do not trade with EU. However, there are constrained by a huge regulatory burden which is compulsory abroad.
The EU has become a huge waste of space. It was able to place the Brits under 9 levels of government. Of the 80 regulations that the Brits brought to the EU for ratification only 2 were approved. It only goes to show that the EU was governing the UK as a country.
The Brexit appears to be great news for the Brits and the world. This will be a chance for greatness of Great Britain for the Brits. The country could reinvent itself just as the Singapore-style supercharged economy.
We may eventually see a collapse of the EU as most of the other countries would also want out if given the opportunity. But this would leave UK as a safe haven from those risks, attracting investors, improving the pound. Brexit has been a people vote and not a political one as mostly presumes. Politicians who voted to remain, their choice only reveal that they just wanted to keep their job and not for the welfare of the people.