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The International Implication of United Kingdom's Vote To Leave The European Union (EU)

This document provides an overview of Brexit and its potential implications. It begins with definitions of the EU and how it works. It then discusses the UK's history with the EU and the referendum on leaving. Potential impacts of Brexit are examined, such as effects on trade, jobs, migration, and economic growth. The EU faces the unprecedented challenge of negotiating a member state's withdrawal. Overall, the document argues that while Brexit presents challenges, the EU and UK will find ways to continue their relationship.

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Francis Mae Felipe
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114 views

The International Implication of United Kingdom's Vote To Leave The European Union (EU)

This document provides an overview of Brexit and its potential implications. It begins with definitions of the EU and how it works. It then discusses the UK's history with the EU and the referendum on leaving. Potential impacts of Brexit are examined, such as effects on trade, jobs, migration, and economic growth. The EU faces the unprecedented challenge of negotiating a member state's withdrawal. Overall, the document argues that while Brexit presents challenges, the EU and UK will find ways to continue their relationship.

Uploaded by

Francis Mae Felipe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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The International Implication of United

Kingdom’s Vote to Leave the European


Union (EU)
BREXIT
Outline
CHAPTER 1: INTRODUCTION
Definition of Brexit
CHAPTER 2: THE UNITED KINGDOM’S HISTORY IN THE EUROPEAN UNION
UK and EU History
Arrangements Following Brexit
Overview of the Basic Output and Input
Trade with EU Member States
Trade with non-EU countries
CHAPTER 3: REVIEW OF RELATED LITERATURE
Chapter 4 : CONCLUSION AND OBSERVATION
Chapter 5: BIBLIOGRAPHY
What this talk covers…

Definition of the EU
How EU work?
UK in European Union
Brexit: In or Out of EU?
What is Referendum
Impacts of Brexit on UK & World
Definition of the EU
EU: European Union (1993)

The European Union - often known as the EU - is an economic and political


partnership involving 28 European countries

It began after World War Two to foster economic co-operation, with the idea
that countries which trade together are more likely to avoid going to war with
each other.

It has since grown to become a "single market" allowing goods and people to
move around, as if the member states were one country.
How EU works?
The European Union is based on the rule of law. This means that every action
taken by the EU is founded on treaties that have been approved voluntarily
and democratically by all EU countries.

The treaties are negotiated and agreed by all the EU Member States and then
ratified by their parliaments or by referendum.

Who makes the decisions?


The European Commission
The European Parliament
The Council of the European Union and
The Court of Justice.
UK in European Union
The EU is the UK’s largest trade partner by far (accounting for c.44% exports
and c.54% imports in 2015) and this is likely to continue in the short and
medium term, subject to legal status.
BREXIT
Brexit is an abbreviation of “British exit” that mirrors the term Grexit,
refers to the possibility of Britain's withdrawal from the European
Union.
In January 2013, David Cameron, the British Prime Minister, held a
speech wherein he pledged to hold an in-out referendum on the UK’s
membership of the EU before the end of 2017 (CEP 2014). UK citizens
are increasingly discontent with the EU, its agenda of increasing
integration and the large inflow of EU migrants to the UK labour market
(Glencross 2015) . Further, the Conservative party is split in two on
whether to remain or leave the EU (Whyte 2015). The referendum
commitment is a political move by the Conservative government to
appease its base, as well as the constituency. Hence, Cameron has
promised to renegotiate the terms of UK membership in the EU, in the
hope that UK citizens will choose to stay in the Union on the back of
more favourable membership terms.
The referendum then creates pressure for reform in the EU, as the other
member states face a realistic risk that the UK withdraws its
membership. The EU has recently fought tooth and nail to keep Greece
in the eurozone, and it would make sense that it would go even further
to keep the third largest economy in the EU.
Finally in November 2015, Cameron announced UK’s demands for
reform to be:
1) To protect Single Market rights for the UK and other members
outside the eurozone, guaranteeing non-discrimination of non-euro
countries.
2) To put competitiveness in the forefront and reduce regulation and
bureaucracy that burdens business.
3) To exempt the UK from commitment to pursue an “ever closer union”
in the form of greater integration among EU countries, and instead
strengthen the role of national parliaments in the EU’s decision-making.
4) An agreement to let the UK limit welfare benefits for European
migrants for four years after they arrive in the country (Altinget 2015).
What are the difficulties that the UK
encounters in their withdrawal from the
European Union?
Brexit: In or Out of EU?
Are there any viable options for Britain leaving the EU?

What would be the impact on British jobs?

Would Britons need visas to visit EU countries?

Would Britain save money?

What would happen to Britons working in Europe, and EU citizens working in the
UK?

Would taxes change?


Referendum
After the Referendum:
Prime Minister steps down quoting he was not the right "captain to steer the
country to its next destination“.

Market reaction to the referendum result was immediate and dramatic.

There is a formal legal process for withdrawing from the EU -enshrined in


Article 50 of the 2009 Lisbon Treaty.

Will Scotland and Northern Ireland break away?


Referendum
Before the Referendum:
Leaving the EU would result in an immediate cost saving, as the country would
no longer contribute to the EU budget.

The EU is a single market in which no tariffs are imposed on imports and


exports between member states.

Inward investment is likely to slow in the run-up to the vote, due to the
uncertainty of the outcome and its consequences.

Under EU law, Britain cannot prevent anyone from another member state
coming to live in the country and vice-versa.
Impacts of Brexit
The uncertainty generated is likely to lead to a loss of momentum in the UK
economy – possibly knocking off up to 0.5% GDP growth in 2016 UK economy.

Market estimates for UK GDP growth in 2017 are 1.5% y-o-y vs. 2.7%.

Discretionary industries will be hardest hit (e.g. Financial Services, Real Estate,
House Builders, Defence)

Non-discretionary industries will be more robust (e.g. Telco, Healthcare,


Metals & Mining, Tobacco)
The first problem the EU faces from a Brexit is the unprecedented
experience of negotiating the withdrawal of a member state.
The UK itself faces an uncertain future.
This aims to examine why Brexit has come to pass and explores what it
could mean for the EU, European integration, and Europe's economics
and security.
It argues that as with many of the other problems the EU has faced, the
EU and UK will muddle through a Brexit, coping but not solving the
challenges it presents.
Conclusion
It seems that opinions regarding Brexit are two sided, close in numbers
and more important that anything very easy to pass to another one. We
can never be sure whether the British will be influenced by facts or
promises and neither can you be sure what will happen until the
Referendum (scheduled sometime before 2017), but some might see
this Brexit as a very ingenious leverage to use in the discussions at the
EU table, because after all the UK is a power in any field and as much as
it would damage them to leave the EU, it sure will damage the EU as
well.

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