Media review

The media review. Evaluation of the referendum on England leaving the EU

Brexit

In the last 2 weeks in the world appeared and was spread the term Brexit. It comes from two English words – Britain и Exit, means the United Kingdom leaves the European Union. The same verbal construction – Grexit – has already been discussed in connection with the possible exit of Greece.

The idea of the EU, i.e. the Association of the Western European Nations based on shared culture and historical past of Rome, existed for a long time. This idea was inspired by Frederick the Great and Napoleon.

The formation of the system of the unites States, began after the Second World war with the unification of economic institutions.

Today the European Union comprises 28 countries of the world in the form of a common market and freedom of movement within the EU, a common Parliament and a common currency (the Euro) adopted in 19 countries.


23 June 2016, the result of a nationwide referendum, the people of great Britain adopted the decision on the country’s withdrawal from the EU. This is the first case of withdrawal from the EU.

There are three causes for exit as follows: the high demands of Union business, large (non-refundable benefits) membership dues of the country and the large influx of migrants. According to public opinion polls Independent, 2/3 of the population says for a reduction in migration. At the same time, European migration to the British less important than the overall market.

Meanwhile, 52% were in favor of withdrawal, and 48% against. The turnout of 71.8% of payroll – this high activity of the English in political matters noticed for the first time since 1992.

The Kingdom consists of the regions that voted differently. England and Wales voted to secede from the EU, but Scotland and Northern Ireland are against it.

What will happen next and how it will look in the UK out of the European Union – no one really knows. Prime Minister David Cameron tries to negotiate the change of status of membership in the European Union. At the same time, Cameron is planning to leave the problem to his successor.

How the UK’s exit affects her and the EU

According to the BBC, the UK will continue to adhere to the treaties and laws of the EU, but It will not participate in decision-making and will move to national agreements with other countries is United in the EU. At the same time, according to the Independent, Germany, France, Sweden and Finland believe that the UK should not have preferences in these agreements.

Passports and other documents issued in the country do not require replacement and will remain in effect. The market can also remain General, since the entry into free economic zone preceded the accession to the EU, however, the regulation will require legislative work.

At the same time, exit from the EU will affect companies and people working in other EU countries and travelling. People will need a visa and it can worsen the economic situation. And on the economic consequences of Breccia warns most economists.

The economic situation has encouraged the company to remain in the country and to export the products to continental Europe. Now, nobody expects export-friendly exchange rate in the long run and European contracts may suffer.

The customer prices are expected to increase. At the same time, it can hurt people living on benefits and allowances. So, pensions are indexed in the country for the amount of inflation, growth of wages or 2.5% (which are the greatest). A UK Bank may change interest rates. At the moment the pound sterling fell by -13% compared to before the referendum.

Christine Lagarde, IMF international monetary Fund, expects that as a result of withdrawal from the EU, the British will lose 1.5-4.5% of its growth domestic product (GDP) depending on conditions and will create a negative effect for the global economy.

More than 4 million UK citizens signed a petition to hold a second referendum, however, it was rejected by the government. According to a survey conducted by the Independent, 4 out of 10 Britons would like to vote again.

Sources: BBC, Financial Times, Economist, Bloomberg, Independent.