BREXIT : The Economic Implications of Brexit

What is Brexit?

Brexit is combining word of “Britain” and “exit”. Citizens of United Kingdom will vote in a referendum on whether their country should remain a part of European Union or withdraw.

What’s on ballot paper of the election about Brexit?

The referendum question will read, “Should the United Kingdom remain a member of the European Union or leave the European Union?”

Voters will have the option of putting an “x” next to one of two answers:

1. “Remain a member of the European Union.”
2. “Leave the European Union.”

Who can Vote?

• British citizens who live in U.K.
• Irish citizens who live in U.K.
• Commonwealth citizens who are residents of the U.K.
• British citizens who live overseas but have been registered to vote in the U.K. in the last 15 years.
• Irish citizens living overseas who were born in Northern Ireland who have registered their vote in the Northern Ireland for last 15 years.
• Canadian citizen who currently lives in the U.K.

History of the European Union

• Before 1980
  BELGIUM (1958), DENMARK (1973), IRELAND (1973), FRANCE (1958), GERMANY (1958), ITALY (1958), LUXEMBOURG (1958), NETHERLANDS (1958), UK (1973)
• 1980 – 1990
  GREECE (1981), PORTUGAL (1986), SPAIN (1986)
• 1990 – 2000
  AUSTRIA (1995), FINLAND (1995), SWEDEN (1995)
• After 2000
  BULGARIA (2007), CYPRUS (2004), ESTONIA (2004), CZECH REPUBLIC (2004), CROATIA (2013), HUNGARY (2004), LATVIA (2004), LITHUANIA (2004), SLOVAKIA (2004), MALTA (2004), POLAND (2004), ROMANIA (2007), SLOVENIA (2004)

Why do some people want to stay?

• More than 3 million jobs in the U.K. are linked to trade with the European Union.
• Being in the EU means lower prices in U.K. shops.
• More than 200,000 U.K. businesses trade with the EU, creating jobs and opportunities.
• The U.K. gets £66 million ($123.8 million Canadian) of investment a day from EU countries.
• The European Arrest Warrants help arrest criminals across the EU, making the country more secure.

Why do some people want to leave the EU?

• The U.K. sends at least £350 million to the EU every week, and the U.K. can’t decide what it spends money on.
• quarter of a million EU migrants enter the U.K. every year, putting a strain on public services, especially the National Health Service.
• The U.K. can’t stop the entry of violent convicted criminals from elsewhere in Europe and can’t deport dangerous terror suspects.
• U.K. jobs and trade will thive after Brexit. Current regulations damage the economy, and cost small businesses and families millions. As a member of the EU, the U.K. can’t make its own trade deals.
• The U.K.can’t hold lawmakers to account. More than half of U.K. laws are made by unelected EU bureaucrats. David Cameron’s deal with the EU is not legally binding.

The survey shows that Northern Ireland and Scotland are the regions most in favour of staying in the EU, with almost two thirds of respondents wishing to remain.

The least positive region about EU membership is the Midlands – with 59 per cent of the East Midlands wanting to leave.

There is a huge gulf among young and older voters over the European issue.

73 per cent of those aged between 18-29 want to remain in the EU, while 63 per cent of those aged over 60 want to leave.

University educated people are most likely to want to stay in the EU.

What might be the economic impact of leaving?

A vote to leave will likely weaken the pound, and could boost the U.S. dollar as investors look for more stable currencies.

At the London School of Economics, found that increased trade costs could knock down the U.K.’s GDP by between 1.1 and 3.1 per cent, reducing the economy to its lowest level since the financial crisis.

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