See EU Later

How Britain is rolling out of the European Union

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   On June 23rd 2016, Britain officially voted themselves out of the European Union (EU). Also known as the Brexit, the vote resulted in a 51.9 to 48.1, a 3.8% win for leave amongst 33,550,000 total voters. It has been 43 years since Britain entered the European Economic Community (EEC), the former group of the EU. In the following article, we cover everything you need to know about the Brexit, including what it is, why it happened, and the political, economic, and macroscopic impacts it will bring upon all of us.

What is the Brexit?

   Brexit is the combination of Britain and Exit, as Britain has been weighing either to leave or stay in the EU. Contrasting to the frivolity of the term, this referendum has mounted the most votes since 1992. The vote was initially proposed by David Cameron, the prime minister of Britain. Since the beginning of his term, he has emphasized the "in or out referendum," giving full rights to the citizens to decide the future of their country. Little did he know that because of these votes, he would later resign as the Prime minister. Britain's' citizens have turned their fate around.

The History between EU and Britain

   The European Union first began as the European Coal and Steel Community (ECSC) in 1951 after World War two in an effort to alleviate the remains of war and to formulate an atmosphere of unity and free trade. In other words, the first six countries of ECSC unanimously decided that free trade would ensure interdependence and peace, decreasing collision amongst countries. The European Union has since functioned as a single market that manages all 28 countries under a unified system and law. Britain finally joined in 1973 after two rejections by EU’s president Charles de Gaulle of France. The EU strives under the following four principles:

 

- Economic to political union (policies on health, environment, security, migration)

- Mobility, growth, stability and a single currency (Euro, traveling without visa, resources)

- Human rights and equality (Charter of Fundamental Rights, Lisbon Treaty)

- Transparent and democratic institutions (Unfair power)

Why Brexit?

   Then why has Britain decided to leave? The first reason lies in the unfair economic and political stance Britain is pinned into. Britain has walked along with the EU’s unified policies, but has also kept their independence by using the pound. The pound was used as the key currency after the Second World War and before the US took over the trade economy, proving Britain’s financial power. However, since Britain became a part of the EU, following the EU’s regulations has hindered Britain from fully expanding and experimenting among the global market. As a result, Britain was conflicted into two groups, those that value the global power and tariff free trade in exchange for limited rights, and those that do not, finding more opportunities outside of the EU.

   Numerically, Stronger In, a campaign that stands with staying in Britain, claims that each household contributes around £340 to the EU every year, resulting in 10 times the amount of benefit that the EU provides with its membership. However, half of the people in Britain preferred this money to be decreased and invested into education, research and development. Thus, taking a bit of risk with enough ground seemed more of an advantageous option for Britain.

   The second reason lies in Britain’s discontent with the policies of EU concerning immigration. Starting from last year, the EU has set a certain number that the members of the EU need to accept. Britain, accepting the 7th largest number stirred controversy. The surge of immigrants have unintentionally and improbably lead to an unemployment drag. Thus, this accusation bloomed internal conflict and angst between immigrants and Britain’s citizens. Similar cases of this phenomenon seemed to arise in other EU countries, including France, Italy, Denmark, and so on, increasing the voices that demanded out of the EU.

   Lastly, there lies a psychological factor in the radical decision to leave the EU. After voting, many of the citizens confessed during interviews that they voted to leave because they felt far from inclusion in the British politics. Many felt that the opinions of citizens themselves weren’t being respected or heard. In other words, they felt that giving a shock to Britain and waiting for what would happen was better than the current social oppression that they were in. Political paralyzation, in psychological terms, can also be found amongst supporters of Trump. Leaders of Britain that are soon to take action must keep in mind that repairing the social damage is needed. The decision to leave was, to some extent, influenced as much by the lack of opportunity and distrust towards the government as the animosity towards the EU.

Brexit’s Impact

   Resulting from the three reasons above, the aftermath of the Brexit that is soon to impact Britain can be seen in the following three scenarios. Economically, there will be large amounts of currency that will leave with immigrants, submerging Britain into depression. Uncertainty of the future of the pound will also bring down its value. In fact, one week after Brexit, the value of the pound ntell the most since 1985. This will inevitably ensure second hand impacts in other countries, including Korea.

David Cameron, the Prime minister of the United Kingdom, has worked to reflect the opinions of Britain, but has constantly alarmed its citizens by emphasizing during his speeches that, “the future of Britain would become unsure <they> leave Britain.” After the Brexit was confirmed, he stepped down as prime minister and left the seat in chaos. Moreover, the United Kingdom Independence Party (UKIP), the largest party that stood with leave, had went back on one of its main promises, “We send the EU 350 million a week. Let’s fund our NHS instead. Vote Leave. Let’s take back control,” justifying it as a mistake. Neil Farage, UKIP leader who spoke live on TV right after the vote, earned a great amount of controversy and insult from even the leave voters.

   The political impact, on the other hand, also brings hardships for both political leaders and Britain’s citizens. The withdrawal of Britain follows Article 50 of the Lisbon treaty, stating that in the short term of two years, Britain needs to look over its policies with the EU and choose what to keep and what to newly pass. This includes all policies ranging from the movement of products, services, capitals, and labor to politics, and national defense. Even if all of the policies are not set in these two years, Britain is automatically withdrawn from the EU, leaving Britain completely lost amongst the global market.

   Furthermore, even if Britain leaves the EU, it will be uncertain if they will be able to control the number of immigrants that enter the country. There are undecided gray areas for reasons to why people enter and leave a country, and even if discerning it becomes possible, Britain is still a free trade country that earns a large part of its income from trade. This means that simply blocking immigrants would not only mean less currency, but also a surge of hard feelings between Britain and the country where the immigrants come from. All in all, the promises the leave side proposed are all too one-sided, overly adventurous, and unstable to follow.

   Lastly, Brexit macroeconomically formulates an atmosphere of anti globalization and isolationism, and increasing violence. In fact, between June 16th and the 30th, there were a total of 3,076 Brexit related crimes, a 42% increase of 2015’s 916. The day after the decision of the Brexit, June 25th, recorded the highest number of 289 in just one day, which concerns the safety of both immigrants and Britain. This fact is crucial for understanding that stepping out of the pool of the EU doesn’t mean independence, and isolation for the exchange of others leaving only brings angst amongst each other. This finding may come in handy during the upcoming US Presidential elections in August, 2016.

What Next?

   Following the resignation of Cameron on June 24th, Theresa May has become Britain’s new prime minister for the leadership of the Conservative Party. As Cameron’s six years as the country’s leader came to an end, he announced his plans to stay on as the member of Parliament for Witney in Oxfordshire. May has said repeatedly that she will not trigger the Article 50 until she is sure Britain can access the single European market, but also gain the ability to set limits on EU regulations.

   A petition has been signed by over 4.1 million people for a second vote, the most since the government petition process was introduced in 2011. However, the Foreign Office responded, “The referendum was one of the biggest democratic exercises in British history with over 33 million people having their say,” and restated that it was important to figure out the next step to ensure the best possible outcome for Britain.

   Brexit has so far not noticeably impacted Korea. However, there will be imminent consequences in the automobile and marine industry once Britain and Korea signs a separate FTA as there is an automatic 10% tax on trade. This may lead to a decrease in trade and moreover, a change in in consumer psychology, which may impact the next few years. The Brexit is not only an issue for Britain and EU, but also for us in Korea. As students, we must stay tuned, enlightened on global current events, and keep a critical mind to become a true comprehensive citizens.