Brexit

1. First page: You should address the following question:

– What is the incentive of Brexit? Why did they want to exit from European Union?

2. Second page: Watch the video on the following link and summarize it:
https://www.weforum.org/events/world-economic-forum-annual-meeting-2019/sessions/europe-after-brexit

3. Third page: What do you think about the Brexit? Are they legitimate reasons? Do you think that United Kingdom and European Countries would be better off in the future? Why?

references might be books, journals, WSJ, FT, and other legitimate Internet sources.

ANSWER

Brexit

Brexit

Brexit is the removal of the United Kingdom from the European Union that happened through a voting process in 2016, where approximately 53 percent approved the withdrawal from the EU while 47 percent embraced the idea of staying within the European Union. The hard Eurosceptics supported the withdrawal strategy and opposed the soft Eurosceptics with the two parties spanning the political spectrum. In 2017, the United Kingdom government started the pulling out procedure by invoking article 50 of the agreement on the European Union approved by the assembly. The United Kingdom discussed to abandon the European Union customs union and single market.

Incentive of Brexit

Various reasons led to the outpouring of votes to leave the European Union, with the first being economical. The EU did not discuss the financial issues evident since 2008, such as the 20 percent unemployment in southern Europe (Mauldin, 2016). The difference between the lives of Germans and southern Europeans who enjoy approximately 5 percent of unemployment is reflective; hence, entire Europe has stagnated economically for a long time. The rise of nationalism is another reason that led to Brexit as there was a growing distrust of multinational money, business and defense institutions formed after World War II. Several people who opposed the EU are convinced that these institutions, such as NATO and IMF, are no longer serving their duties (Dhingra et al., 2016). The immigration problem in Europe was also a contributing factor as European Union opponents considered this to be a national issue while other leaders argued that refugees were a moral obligation. Lastly, political elitism is the third reason that contributed to the exit since Britain’s leadership was subjected to profound loss. Two established parties embraced staying within the EU; however, a third group, from the two parties, opposed the idea. Individuals in the third faction saw both of the concerned parties as unfriendly to their interests.

Video Summary

The video is all about Europe after their withdrawal from Brexit and the likely consequences of this process. The whole process has brought different views with some wealthy members moving to other countries due to Brexit. Britain is in a split situation, which is expected to remain for a long whether there is a second vote or treaties. A different opinion is evident within the video where some individual projects a positive effect on the process, such as strengthening Europe’s diversity, shared responsibilities and shared liberal values. On the other hand, Dr. Martin Wolf has a different opinion concerning this exit’s effects on both the United Kingdom and Europe (“Europe after Brexit,” 2019). First, the uncertainty will not be removed; thus, it is expected to stay for years despite its paths. The two parties are also likely to have a dived opinion.

Brexit is still expected to cause a multi-year mess by creating constant conflict between the United Kingdom and its trading partners. Dr. Martin explains that this exit can have both positive and negative effects on the EU. Some positive results incorporate the change in economic culture to a less liberal direction. Concerning the impact on the labor market, the Europe Continent will be hit by automation, digital economy, and change in the way people work, among other changes. Immigration regulations are also expected to change where the government will try and reduce these numbers significantly. On the European side, there will be an export of labor since most people are expected to leave.

Views on Brexit

The greater perspective and shape of the Brexit effects are still not clear as there is a minimal plan of the condition of potential British-EU relationship or a summary of any agreements between Brussels and London. However, the member state’s vote to exit is a great surprise to the union’s view, international standing, and sense of the resilience of the European mission. If a single member state can vote to exist, others can also exist because there is nothing certain regarding an ever-expanding and growing European Union. Since the fragility was already evident, this exit will further affect the Union’s credibility, political effort to act, and legitimacy. The process also initiates an added load on the organizations and member states, struggling with euro issues, immigration problems, and Russian hostility (Wadsworth et al., 2016). Fixing the multifaceted Brexit talks lowers the assets available to tackle these problems and enhances the complication of controlling these probems as they start feeding off one another.

Even though the reasons for Brexit are legitimate, the exit has more disadvantages than the intended benefits. The European Union has potentially lost its most economically liberal member, and Brexit’s effect will bring a slower growth to the single market. Initiatives such as energy merger will also drop a significant champion. There is also an added communication with increasing patriotism in Europe; for instance, with the loss of the United Kingdom, part of the single marketplace growth may well disappear (Busch & Matthes, 2016). The increasing nationalist parties are also likely to need extra security for the local industries. Minus the United Kingdom’s presence in weighing the stability against similar protectionism, the strength of the northern European free traders to safeguard the single market is unclear. An added risk to a single market flows directly from this withdrawal, where employees will have to look across the rest of the Union for their right to work.

References

Busch, B., & Matthes, J. (2016). Brexit-the economic impact: A meta-analysis (No. 10/2016). IW-Report.

Dhingra, S., Ottaviano, G., Sampson, T., & Van Reenen, J. (2016). The impact of Brexit on foreign investment in the UK. BREXIT 2016, 24(2).

Europe after Brexit. (2019). Retrieved from https://www.weforum.org/events/world-economic-forum-annual-meeting-2019/sessions/europe-after-brexit

Mauldin, J. (2016). 3 Reasons Brits Voted For Brexit. Retrieved from https://www.forbes.com/sites/johnmauldin/2016/07/05/3-reasons-brits-voted-for-brexit/#2be0ace31f9d

Wadsworth, J., Dhingra, S., Ottaviano, G., & Van Reenen, J. (2016). Brexit and the Impact of Immigration on the UK. CEP Brexit Analysis, 5, 34-53.