Brexit Reflection: Neoliberal Backlash?

By Sarah Benewith

Throughout the semester, my group has covered the unfolding situation in the European Union as a result of Brexit. Brexit, the referendum vote in which the United Kingdom voted to leave the EU, has taken the world by storm but its consequences are still widely unknown. In our first post, we explained the structure of the EU and the UK’s special relationship with it. Then, we explained the long term and short term causes of Brexit, which include Britain's independent tendencies, pro-Brexit propaganda, and a lack of trust in the EU. Subsequently, we set up our next two posts, dividing them into economic and sociopolitical consequences of Brexit. The second post, detailing the economic impact, began with an explanation of how the UK benefited from being apart of the European Union. Immediately after Brexit, the pound plummeted and foreign investors lost confidence in the UK’s economy. If the UK makes a full departure from the EU, it is likely that trade restrictions will be put in place, unemployment will rise, and the EU will lose productivity. Finally, the third post, in which we explained the sociopolitical effects of Brexit, focused mainly on immigration and the future of the United Kingdom. Since Brexit appeared to be a vote centered around immigration, laws on the immigration of Eastern Europeans and refugees will certainly tighten. For the time being, immigration is only increasing. In terms of the future of the United Kingdom, the Brexit vote has reignited tensions between the nations that make up the UK. It is entirely possible that Scotland will become independent and that Northern Ireland and the Republic of Ireland will reunite in the coming years. More than anything, the Brexit vote reflects a xenophobic, neoliberal backlash to liberal organizations like the European Union. We hoped to illustrate that although none of these things may happen, Brexit is symbolic, which can already be seen with the recent US presidential election.

In order to research for our posts, we first determined what each post would be about and delegated the majority of the writing for those posts to two group members. Since Brexit is still a topic that is up in the air, it made sense to talk about broad impacts, splitting the research into economic and sociopolitical consequences. This is where it became handy that we were in a group, not just individual writers, because two of the members of the group are concentrating on International Economics as part of their International Studies major, while the rest of us are concentrating on Culture, Peace and Conflict, or Politics. Thus, assigning the writing became a matter of logic. Then, we researched our topics on every platform possible, including library databases, economic magazines, news broadcasts, and personal accounts. Not surprisingly, the content of the sources we found differed greatly depending on their publication date: before or after June 24, 2016, the date of the Brexit vote. While sources before this date were useful to explain background information and the context of Brexit, we had to limit ourselves to more recent articles, studies, and interviews in order to get a clear picture of what is next for the EU. Also unsurprisingly, most of the sources came from British publishers, like the BBC, the INDEPENDENT, and various UK government websites. This was useful for general information, for images, and for British perspectives on the events unfolding; however, we had to delve a lot deeper for sources that offered a perspective on how Brexit would affect the EU. One task that I was often given in my group was to find hyperlinks and to post the final draft. Although posting was often quite tedious, I found hyperlinking to be the most enjoyable part of the research. Hyperlinks gave us the opportunity to use less conventional sources, like a Brexit campaign movie found on YouTube, and they caused the blog to seem overall more like a genuine news blog.

In terms of doing research, I learned the importance of looking at the context of the source itself. Especially with current events, writers can spin the information to fit a certain image or agenda. Thus, it is necessary to consider the type of source, its country of origin, its date of publication, and its medium (articles that can be accessed by social media are often quite different from printed articles.) As for group work, I learned the importance of delegating tasks, as well as working together in person. We delegated tasks as soon as we started working on the project, which was very helpful. However, we then left each other to our own devices and did not really ensure that each of us was doing our part. Although ultimately we got everything done and on time, I think that working together, in the same room, at the same time would have created an atmosphere of motivation and collaboration. Despite this, I was glad to be working in a group, especially since we all have our own interests in International Studies, because it gave the blog posts several perspectives that I would not have been able to add on my own. Finally, in terms of Brexit, I learned a lot. Coincidentally, I was in London when the Brexit vote occurred and it really defined my time there. Thus, I already knew a lot about the vote, the causes, and the immediate impacts going into this project. However, this project gave me the chance to analyze what the vote means in detail, since I was still in disbelief that something like this could happen. My research, coupled with concepts I have learned in class about free trade and neoliberalism, has led me to certain conclusions. The Brexit vote, which may not actually mean anything without a Parliament vote, was the precursor to what may be a neoliberal movement. Brexit closely parallels the election of Donald Trump because it revealed a silent white majority who is xenophobic, racist, and distrustful of any state involvement in the economy. Whether or not free trade is a beneficial system is another topic altogether. What is clear is that we are teetering on the edge of two possible worlds: one cosmopolitan, diverse world, or one white-supremacist, isolated world. Working on this blog has shown me that many people are wholeheartedly against this neoliberal backlash, including people who live in London, refugees, and certainly the European Union. These voices are drowned out by the dominating forces of the US and the UK, which have been the dominating world powers for centuries. In other words, it is time for a change.

References

Beauchamp, Zack. (2016, Nov 9). Donald Trump’s victory is part of a global white backlash. Vox. Retrieved from http://www.vox.com/world/2016/11/9/13572174/president-elect-donald-trump-2016-victory-racism-xenophobia

Durkin, M. (2016, May). Brexit the Movie. United Kingdom: Wag TV. Retrieved from https://www.youtube.com/watch?v=UTMxfAkxfQ0/

Greenberg, Steve. (2016, Jun 28). Brexit and Trump. The Association of American Editorial Cartoonists. Retrieved from http://editorialcartoonists.com/cartoon/display.cfm/152074/

Oliveira, Ivo. (2016, Jun 30). Cartoons: The Brexit divorce. Politico. Retrieved from http://www.politico.eu/interactive/brexit-european-union-referendum-commission-david-cameron-leave-cartoons-draw-brexit-divorce/

Woodcock, Andrew. (2016, Nov 7). Theresa May refuses to back down on Brexit immigration controls. The INDEPENDENT. Retrieved from http://www.independent.co.uk/news/uk/politics/theresa-may-refuses-back-down-brexit-immigration-controls-eu-referendum-a7401581.html

Brexit: Culture, Immigration, and Backlash

By Sarah Benewith, Hannah Grayson, Pippa Walton, Gretchen Roderick, & Emma Endres

Aside from the severe economic impact from Brexit that is developing in Europe, the UK’s referendum has created an extreme socio-cultural effect on the European continent centering around immigration, which can be seen with two main issues: refugees and relations within the United Kingdom.

Although Brexit has not gone into full force, it is certain that immigration will be affected. While on the surface Brexit appeared to be an economic issue, it was immediately underpinned by the topic of immigration, demonstrated by the demographics of the voting results. Due to the minimized immigration restrictions that are in place under the European Union, many Europeans have moved in and out of Britain. One of the most notable results is the high number of Eastern European immigrants living in the UK, which caused many Brits to believe that immigrants were taking jobs and houses from them. This created a belief that immigrants were forcing the National Health Care and educational services to be put under pressure, and created general racial tensions (Tilford, 2016). The number of immigrants from the nations that have joined the EU since 2004, including but not limited to Poland, Romania, Bulgaria, and Croatia, has increased dramatically in recent years. Thus, the British people who opposed immigration generally voted for the UK to leave the EU. Since then, many have called this voting pattern xenophobic or racist; however, the new Prime Minister, conservative Theresa May, aims to abide by the vote and tighten immigration restrictions. This has led to questioning whether or not immigrants from those same countries will still be able to move to the UK after Brexit is put into action. Fearing potential immigration restrictions, as promised by May, many Eastern Europeans have begun to immigrate to the UK before the Brexit negotiations are over (“EU Migration…” 2016) This presents an ironic possible outcome of the referendum: more Eastern Europeans may move to Britain in fear of closing borders, although the underlying intention of the vote was to keep immigrants out.

Although many minority groups have been, and are going to be, affected by the social consequences of Brexit, those who have been forced to leave war-torn countries in search of better lives have arguably suffered the greatest blow. According to the UN’s Refugee Convention’s process known as “non-refoulement,” countries cannot return refugees to their place of origin if there’s a risk of persecution or death. Although the European Union had promised to aid 160,000 refugees with resettling last year, fear of refugees exploded in the United Kingdom after the country announced the “Vulnerable Persons Resettlement Program (VPR), which aims to grant humanitarian protection to 20,000 refugees through 2020,” (Yu Hsi Lee, 2016). This fear drove the VPR to only accept about 60 per 100,000 applicants last year, four times less than the EU average, according New Statesman (Wigmore, 2016). As the United Kingdom was preparing to vote on the EU referendum, the United Kingdom Independence Party (UKIP) campaigned on stricter immigration policies and the phrase “Take back control of our borders” in response to the refugee crisis gripping the entire world (Yu Hsi Lee, 2016). Thus, the problem here is not only a social one, but an internal political one as well. The situation intensified when member of parliament Jo Cox was shot, stabbed, and killed in Birstall, West Yorkshire after publicly supporting remaining in the EU and welcoming refugees.

Moreover, the issues of immigration and nationality have arisen in terms of the UK’s relationships with nations like Scotland, Ireland, and Northern Ireland and the rest of the EU. It has always been clear that although England, Wales, Scotland, and Northern Ireland are part of the same state, they are each their own separate nations. As demonstrated by the Scottish Referendum in 2014, where 55% voted that Scotland should not be an independent state, all members of the UK were more or less content under the UK-EU system. Immediately after Brexit, the leaders of Wales, Scotland, and Northern Ireland all began discussing the possibility of subsequent referendums for each nation (Morris, 2016). It is apparent that each of these nations see more value in being part of the European Union than the United Kingdom. On a cultural level, this is a pressing issue. Citizens now have new questions of national identity. This is best shown by the number of British citizens now attempting to acquire Irish passports. On both a national and local level, people are doing whatever they can to maintain ties with the European Union. Although the future of the UK is still up in the air, there are two main possibilities. First, the UK will remain intact, meaning that its nations may suffer from the loss of contact with the EU and its citizens may question their identity with Britain. Second, the UK will break up: Scotland will become its own sovereign state, the Republic of Ireland and Northern Ireland may reunite, and the UK will simply become England and Wales.

Why does it matter?

There are many ways that Brexit directly or indirectly affects current issues in Europe and in the rest of the world. Domestically, Brexit has changed British national identity and what it means to be British. Certain groups who had previously been considered part of the British community are now being ostracized and even targeted simply because of their race or religion. According to the UK Home Office, “The number of racially or religiously aggravated offences recorded by the police in July 2016 was 41% higher than in July 2015,” (Weber, 2016) These numbers are especially scary for members of the LGBTQ+ community in the UK, who experienced an estimated 147% increase in hate crimes since last year. Even more disturbing has been the rise of white supremacist groups, as they have begun to feel powerful, preaching xenophobia and marching with swastikas through the streets of London and other major cities, ripping headscarves off of women and swearing at young Polish children (Lusher, 2016).

In other words, Brexit has created strong tensions, most of which centering around identity politics. Aside from the outright racism and hate crimes in the UK, a lot of attention has been drawn to various social groups in the rest of Europe. France now struggles to deal with the masses of refugees and immigrants trying to cross the English Channel to the UK. The large migrant camp on the coast of France, called the “Calais Jungle,” was recently cleared out, showing France’s decision to force the UK border to be responsible for the migrants. Overall, Brexit has forceful social implications, including the idea that discrimination towards minority groups is justified not only in the UK, but throughout the EU. Brexit is closely related to issues like the Syrian refugee crisis and the terror attacks in France; at this point, it seems as though any development made in Brexit may have an affect on these issues, and vice versa.

The Calais Jungle, a symbol of Europe's struggle to deal with immigration

In terms of economics, it is possible that Brexit will create a beneficial situation for the UK, the EU, and perhaps the rest of the world. It is equally possible that Brexit may fatally damage the current state of the world. In terms of socio-cultural relations, there is only one possibility that seems likely, which is that Brexit will be inherently negative. As can already be seen with the increasing traces of hate crimes and discrimination, Brexit was a decision made in order to benefit a specific group: white, English-born people. In light of the recent election of Donald Trump to the US Presidency, Brexit appears to be the start of a trend. As in the United States after the election, Brexit has allowed racism and xenophobia in the UK to become front and center as these ideals have been seemingly publicly accepted by the majority of the country as evidenced by the results. Perhaps now, other nations will vote to begin independence movements, like Scotland and Northern Ireland, or they will start a chain reaction and vote to reflect widespread feelings of xenophobia and racism, like in the United States.

References

Beauchamp, Zack. (2016, Nov 9). Donald Trump’s victory is part of a global white backlash. Vox. Retrieved from http://www.vox.com/world/2016/11/9/13572174/president-elect-donald-trump-2016-victory-racism-xenophobia

Cockburn, Harry. (2016, June 28). Ireland urges Britons to stop applying for Irish passports after  Brexit. The INDEPENDENT. Retrieved from http://www.independent.co.uk/news/uk/politics/brexit-ireland-irish-passport-britons-urged-to-stop-applying-after-eu-referendum-vote-a7107016.html

Cohen, Richard. (2016, July 4). Brexit, Syria and chaos in our interconnected world. The Washington Post. Retrieved from https://www.washingtonpost.com/opinions/the-brexit-and-other-bad-news-butterflies/2016/07/04/d1e76d66-3fc8-11e6-80bc-d06711fd2125_story.html

EU migration: Eastern European workers in UK pass one million. (2016, August 17). BBC. Retrieved from http://www.bbc.com/news/uk-37109747

Jo Cox MP dead after shooting attack. (2016, June 16). BBC. Retrieved from http://www.bbc.com/news/uk-england-36550304

Lima, Mauricio; Nossiter, Adam. (2016, Oct 24). ‘We Are Ready to Leave’: France Clears Out Calais ‘Jungle’. The New York Times. Retrieved from http://www.nytimes.com/2016/10/25/world/europe/we-are-ready-to-leave-france-clears-out-the-jungle.html?_r=0

Lusher, Adam. (2016, July 28). Racism unleashed: True extent of the 'explosion of blatant hate' that followed Brexit result revealed.  The INDEPENDENT. Retrieved from http://www.independent.co.uk/news/uk/politics/brexit-racism-uk-post-referendum-racism-hate-crime-eu-referendum-racism-unleashed-poland-racist-a7160786.html

Morris, Steven. (2016, July 22). Scotland, Wales and N Ireland could demand vote on Brexit terms. The Guardian. Retrieved from https://www.theguardian.com/politics/2016/jul/22/brexit-scotland-wales-northern-ireland-eu-referendum

Results of Scottish Independence Referendum. (2014, Sept 24). scotlandreferendum.info Retrieved from http://scotlandreferendum.info

Siegfried, Kristy. (2016, June 27). What does Brexit mean for refugees? IRIN News. Retrieved from http://www.irinnews.org/analysis/2016/06/27/what-does-brexit-mean-refugees

Syrian vulnerable person resettlement programme fact sheet. (2015, Oct 28). gov.uk Retrieved from https://www.gov.uk/government/publications/syrian-vulnerable-person-resettlement-programme-fact-sheet

Tilford, Simon. (December 2015, January 2016). Britain, Immigration and Brexit. Centre for European Reform. Retrieved from https://www.cer.org.uk/sites/default/files/bulletin_105_st_article1.pdf

UNHRC. (1997, August 23). Note on Non-Refoulement (Submitted by the High Commissioner)Note on Non-Refoulement (Submitted by the High Commissioner). unhcr.org Retrieved from  http://www.unhcr.org/en-us/excom/scip/3ae68ccd10/note-non-refoulement-submitted-high-commissioner.html

Vargas-Silva, Carlos. (2016, Oct 31). EU Migration to and from the UK. Migration Observatory Retrieved from http://www.migrationobservatory.ox.ac.uk/resources/briefings/eu-migration-to-and-from-the-uk/

Weber, Cynthia. (2016, Nov 1). Brexit, racial and religious hate crimes and homo-, bi- and trans*phobia - why they are all linked. Open Democracy. Retrieved from https://www.opendemocracy.net/cynthia-weber/brexit-racial-and-religious-hate-crimes-and-homo-bi-and-transphobia-why-they-are-all-l

Wigmore, Tim. (2016, June 6). How will Brexit affect the refugee crisis? gov.uk Retrieved from https://www.gov.uk/government/publications/syrian-vulnerable-person-resettlement-programme-fact-sheet

Woodcock, Andrew. (2016, Nov 7). Theresa May refuses to back down on Brexit immigration controls. The INDEPENDENT. Retrieved from http://www.independent.co.uk/news/uk/politics/theresa-may-refuses-back-down-brexit-immigration-controls-eu-referendum-a7401581.html

Yu Hsi Lee, Esther. (2016, June 24). Brexit is Very Bad News for Refugees. Retrieved from https://thinkprogress.org/brexit-is-very-bad-news-for-refugees-d43c8800f9b4#.u3hmo0r4h

Brexit and its Economic Impact

By Sarah Benewith, Hannah Grayson, Pippa Walton, Gretchen Roderick, & Emma Endres

Brexit, the tumultuous and obscure decision that has gripped all of Europe, stemmed from several complex issues detailed in our first post. The exact consequences of Great Britain’s break with the European Union, especially cultural consequences which will be discussed in a later entry, are still unclear. However, the most damaging effects can and will be seen in the British economy. Britain’s departure from the EU has begun to destabilize the British economy, and may begin to affect other sectors of the economy and other global economies in time.

Since November 1993, the European Union has joined economic forces to strengthen the continent as a whole. One of the key advantages of being part of the EU is the free trade between its members. This free trade agreement has expanded the production capabilities of Europe, allowing products to reach a greater market. The EU has also prevented war by financially connecting many European countries. Another large advantage of joining the EU is removing tariffs from imported goods and in turn exporting goods to a large market for lower prices. In short, members of the EU are better off because they can buy and sell their goods without paying international taxes. It also sets a common tariff for all outside trade, so nations would pay a set tax on outside goods, thereby promoting internal trade (European Union, 2016). By leaving the EU, it is possible that Britain will not enjoy any of these trade benefits going forwards.

The pound continues to fluctuate in comparison to the dollar. 

In fact, after withdrawing from the European Union, certain economic figures have emerged that reveal the potential downfall of Great Britain's decision. The British pound has been valued at around $1.60 against the American dollar for the past 5 years. It currently stands at $1.22 (Rodionova, 2016) and could fall further. After the referendum, Britain immediately began evaluating how trade will function without EU membership. In 2014, the last year with full economic analyses, Britain’s exports were worth $472 billion, and imports were worth $663 billion, resulting in a deficit of $191 billion (Simoes, n.d.). As an island nation, Britain is highly dependent on trade and withdrawing from the EU will undoubtedly raise living costs. The combination of higher tariffs and a reduction in exports means the deficit is likely to grow. Prime Minister Theresa May is currently starting negotiations to analyze withdrawing from the EU, and trade is at the top of the list of economic concerns. If trade begins to falter and the market shrinks, other sectors of the economy will be impacted. Unemployment may already be on the rise: Google’s data analysis shows that people were searching for “jobseekers” insurance, akin to American unemployment insurance, about 50 percent more in July than they were in May (“Straws in the Wind,” 2016). The public has seen the impact of higher costs on employment, and it is reasonable to expect that the effects will only become more severe. The economy was dependent upon European Union connections and freedoms; withdrawal will have drastic changes upon the nature of the British way of life.

FindTheData | Graphiq

Graphiq found in The Independent

International business is another major concern. Many international corporations have investments in UK affairs, which allowed them access to European free trade, previously allotted to the UK through the European Union. China’s investments in the UK alone total over $38 billion (Davies. 2016). No longer having free trade in the United Kingdom will have significant effects on the health of the global economy. The added costs of trade and business evaluations will be felt by British consumers, and eventually consumers outside the UK. The United States and China take the remaining two spots of largest economies in the world, if the combined economies of the European Union are considered an economy. The need to reset trade agreements and investment negotiations could obstruct growth until further clarity is reached; Theresa May has only just begun negotiations, so this clarity may not arise for months. This period of uncertainty will likely decrease confidence in the UK’s economy; these uncertainties will heighten the volatility of the country’s current financial situation and reduce activity from businesses and investors alike (Rosenfeld. 2016).

So, why does all this matter? As we watch these events unfold in the UK, consumers will notice an effect on living costs. Without free trade, the costs of importing and exporting goods will rise, which will hike up the prices that the average consumer needs to pay. Economic tension and trade negotiations could increase interest rates and reduce spending from both consumers and producers. This has a ripple effect. The reduction of spending will increase unemployment and drive the economy into a contractionary or recessionary period. An uncertain financial future drives people to saving, reduced spending and saving, and an overall lack of trust in the economy. Leaving the EU could drive Britain into a recession in a world still recovering from the United States 2008 recession. Soon, this huge change in trade balances may affect consumers all over the globe.

References

Davies, R. (2016, August 9). Chinese investors pump money into the UK, but what big brands do they own? The Guardian. https://www.theguardian.com/business/2016/aug/10/chinese-investors-pump-money-into-the-uk-but-what-big-brands-do-they-own

European Union. (2016). In Funk & Wagnalls New World Encyclopedia. Chicago, IL: World Book.

The EU in Brief (n.d.). europa.eu. Retrieved October 15, 2016 from https://europa.eu/european-union/about-eu/eu-in-brief_en

Rodionova, Z. (2016, October 22). Pound value drops below $1.22 as May faces tough opposition at EU summit. Independent. Retrieved October 21, 2016, from http://www.independent.co.uk/news/business/news/pound-value-dollar-drops-sterling-currency-exchange-theresa-may-eu-summit-a7374336.html

Rosenfeld, E. (2016, June 24). Brexit 101: What just happened and why it’s important for Americans. CNBC.http://www.cnbc.com/2016/06/24/brexit-101-what-just-happened-and-why-its-important-for-americans.html

Simoes, A. (n.d.). OEC - United Kingdom (GBR) Exports, Imports, and Trade. The Observatory of Economic Complexity. Retrieved October 21, 2016, from http://atlas.media.mit.edu/en/profile/country/gbr/

Brexit and the European Union

By Sarah Benewith, Hannah Grayson, Pippa Walton, Gretchen Roderick, & Emma Endres

In the past 30 years, there have arguably been three major historical events with widespread international consequences: the fall of the Berlin Wall in 1989, the 9/11 attacks on the World Trade Center in 2001, and Brexit just this past summer. While the effects of the Berlin Wall and 9/11 have long been felt and analyzed, Brexit has left the world in somewhat of a panic.

What is Brexit? What is the European Union?
          Brexit, an abbreviation for “British exit”, refers to the British referendum on June 23, 2016 in which British citizens voted to leave the European Union. It was immediately evident that Brexit would drastically change Britain. Not only did the statistical results highlight how divided the county was, but the major pro-Brexit political parties all changed leadership; this included the resignation of the Prime Minister (“How divided”, 2016). However, the effects of Brexit on the European Union (EU) remain uncertain. After the initial shock of Brexit and the surge of people googling “What is the EU?”, the world began to consider what would happen next to the European Union.

British demonstrators in an anti-Brexit protest

        The idea of a structure like the European Union came about following the social and economic catastrophes of World War I and World War II, when the Allied powers in Europe sought a structure that would promote economic cooperation and more specifically prevent France and Germany from future disputes. They hoped that this economic cooperation would eventually lead to political cooperation. Starting with smaller, less invasive economic agreements, the states of the European Community slowly built up to the overarching structure now known as the European Union. The EU has effectively tied the continent together, based on the concept of economic interdependence. The countries who signed the Schengen Agreement, which does not include the UK, have open borders (allowing free travel between states), charge no tariffs or duties on traded goods, and impose high tariffs on goods imported from outside the EU. It is simple and effective to travel between countries and to access a larger market for goods, promoting expansion; if one country profits, so do the rest (“European Union,” 2014).

What are the causes of Brexit?
          Immediately following the UK's introduction into the European Union in the 1970s, there has been constant opposition to the membership among the British public and various British governments. This partially stems from the UK’s history of being strongly independent and being the least integrated into continental Europe. Historically, the UK has been isolated from the rest of Europe both religiously, exemplified by England’s own established church, and geographically, since the UK is a group of islands. Additionally, many British media sources have showed an anti-EU bias ever since the UK joined, demonstrating that propaganda (like Brexit: The Movie) potentially influenced public opinion. Moreover, it was politicians who took the lead in promoting Brexit, hoping for personal gain. Thus, a plethora of pro-Brexit campaigns came about. Several British public and political figures were influential in saying that economically, the UK did not need the EU, citing that Britain has the second largest economy in the EU and that Britain uses the pound, not the euro, as currency. Additionally, there was no strong counter argument made about the benefits of the EU, which may have changed public opinion. This is exemplified by the Scottish National Party’s pro-EU campaign, which led Scotland to vote 62% to remain in the EU (“EU Referendum Results,” n.d.). Overall, the lack of trust in the EU caused public discontent in the UK. This dissatisfaction led the former Prime Minister David Cameron to promise the public, with the personal intention of being re-elected, a referendum vote on leaving the European Union, the “Brexit” we now know. 

What does this mean for the EU?
          Since the implementation of the EU in the 1990s, and through the introduction of the euro, this union has been highly successful. However, the economic crisis of 2008 in the United States had impacts across the Atlantic, and the Eurozone suffered. Greece’s economy crashed, leading to a huge recession, and the entire EU has been trying to save the country before the euro collapses and the system falls apart. Since 2010, multiple countries have considered ceding from the EU, Great Britain is the first to officially do so. The Vote Leave campaign (in favor of Brexit), which, among other things, claimed that Great Britain sent 50 million pounds a day to the EU, and that after leaving the EU the government would donate 350 million pounds to the National Health Service a week (Travis, 2016). These claims were quickly proven to be false after the referendum, but they still convinced the public that leaving the EU was an economically sound idea. Before the referendum was even over, the value of the British pound dropped from $1.47 to $1.37, the greatest drop in history, and currently stands at $1.30 (Soffen, 2016). By the morning after the referendum, both domestic and international investors pulled their money out of the stock market. Without membership of the EU, Britain will no longer be able to enjoy duty free trade, and therefore will have to pay tariffs on all imported goods. While nothing has been confirmed, the U.K. is attempting to exit the union as quickly as possible; more official jurisdiction will arise as more summits are held. In some ways, Brexit has assisted a small sector of the economy: more foreigners are planning vacations and buying British goods before Brexit is put into action. However, for the population of the UK, travel has become far more expensive and the cost of living is going to rise. For the remaining members of the EU, the next few years will be instrumental in terms of the resulting economy of the union.

          Along with the important economic consequences of Brexit, it is also very important to discuss the social and political impact that the referendum will have on the United Kingdom, Europe, and the rest of the world. Socially speaking, the people of Great Britain have become divided, not only from Europe but from each other as well. Tensions are rising between the nations that make up the UK, especially those who voted overwhelmingly to remain part of the EU. Now both Scotland, where 62% voted Remain and Northern Ireland, where 56% voted Remain, are in the spotlight concerning possible referendums of their own (“EU Referendum Results,” n.d.). Also, the youth who voted in are now at odds with the older generations who voted out, resulting in ageism in the country on both sides, and hate crimes have been reported to have gone up by 57% due to rising dissent towards refugees and the Arab population (“How divided,” 2016). Politically, the main issue present is that of immigration and of the refugee crisis. Once Britain is officially no longer a part of the European Union, workers from neighboring countries will possibly have to apply for work permits, as opposed to a “points-based” system of immigration, and students studying abroad will possibly have a much harder time going to school in the UK. These measures, among others, are put in place to curb immigration into the country, an issue that prompted many to vote out of the EU. However, this will also impede Brits attempting to move out of the country and into the EU, like the 1.2 million Brits currently living abroad in the EU. Still, it is clear the Brexit is a turning point in Europe; the social, political, and economic circumstances of the continent remain up in the air.

References

Chan, R. (2016, June 24). The U.K. Is Googling What the E.U. Is Hours After It Voted to Leave. Time.com. Retrieved September 18, 2016, from http://time.com/4381612/uk-brexit-google-what-is-the-eu/

Dennison, J., & Carl, N. (2016, July 18). The ultimate causes of Brexit: history, culture, and geography. The London School of Economics and Political Science. Blog retrieved September 16, 2016 http://blogs.lse.ac.uk/politicsandpolicy/explaining-brexit

Donald, A. (2016, June 1). Immigration points-based systems compared. BBC. Retrieved September 18, 2016, from http://www.bbc.com/news/uk-politics-29594642

Durkin, M. (2016, May). Brexit the Movie. United Kingdom: Wag TV. Retrieved September 18, 2016, from https://www.youtube.com/watch?v=UTMxfAkxfQ0/

The EU in Brief (n.d.). europa.eu. Retrieved September 15, 2016 from https://europa.eu/european-union/about-eu/eu-in-brief_en

EU Referendum Results. (n.d.). BBC. Retrieved September 15, 2016, from http://www.bbc.com/news/politics/eu_referendum/results

European Union (EU). (2014) In Salem Press Encyclopedia. Retrieved September 18, 2016.

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