Things You Need To Know About Brexit

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Things You Need To Know About Brexit

As we have seen, the UK decided to leave the European Union based on the results of the referendum held on June 23, 2016. But actually Britain did not immediately leave the European Union as soon as the results of the Brexit referendum were announced, but there was a process that had to be carried out before the British were right. completely out of the European Union.

This paper will discuss a number of things related to Brexit that you need to know.

What is the European Union?

The European Union, or European Union (usually abbreviated as EU), is an economic and political collaboration involving 28 European countries.This agreement began after the Second World War with the aim of helping to restore economic cooperation. The rationale is that European countries work together in terms of trade, so the potential for conflict (read: war) between European countries will be easier to avoid.

In its development, the EU grew into a “single market” that enabled human migration and the circulation of goods in its territory without bureaucratic barriers, like the traffic of goods and services in one country. The EU then also has one single currency, the euro which was launched January 1, 2002 and is used by 19 EU member countries.

The EU also has its own parliament and now makes rules for sectors other than the economy including the environment, transportation, consumer rights and even cellular phone credit fees.

What is Brexit?

Maybe some of you missed the news about Brexit, so wonder what Brexit really is?

Brexit is an acronym for Br Itain Exit , which is a term that has a definition of the exit of the UK from the EU. This acronym is similar to Grexit, which is an acronym of Gr eek Exit , which was popular when Greece, which was hit by political and economic confusion at that time, was expected to leave EU membership.

Why is Britain leaving EU?

The decision was taken based on a referendum held on June 23, 2016, in which the majority of British people (52%) wanted Britain to leave the EU. The number of British people who participated in voting now reaches 30 (thirty) million people, or about 71.8% of the total number of British people.

What happened after the referendum?

David Cameron resigned from his post as Prime Minister of England the day after the referendum, then was replaced by Theresa May who previously served as United Kingdom interior minister. Like Cameron, May also opposed Britain’s exit from the EU but he stated that he would respect the choice of the people.

May repeatedly insists that “Brexit is Brexit”, but there is still much debate about what the impact will be especially on two main issues: how UK companies will do business in the European Union and what restrictions EU member states will apply to their citizens to live and work in England.

What about the British economy?

The UK economy seems to be able to withstand the initial shocks caused by the results of the Brexit referendum , although the pound exchange rate moved near a 30-year low, but there are various opinions about how the UK economy will run for the long term after leaving the EU.

Several large companies such as Easyjet and John Lewis noted that the weakening of sterling had made their budget costs swell. The UK has also lost its AAA credit rating, which means government borrowing costs will be higher.

Nonetheless, share prices have recovered after a weakening, including UK-based companies that traded higher than before the referendum.

The Bank of England cut rates for the first time since 2009, from 0.5% to 0.25% which is the all-time low.

So far there has been no economic recession as expected.

When will England actually leave the EU?

To get out of the EU, the UK must ask for approval referring to Article 50 of the Lisbon Agreement which gives time to both parties (Britain and EU) for two years to make an agreement regarding the secession.

Theresa May has stated that she intends to start the process at the end of March 2017, which means that the UK is expected to officially leave the EU in the summer of 2019. That too will depend on the agreement reached in the negotiations between the UK and EU.

The British government will also establish a Great Repeal Bill that will end EU rule of law in Britain. All regulations that have been made by the European Union over the past 40 years when the UK is still a member will be collected in one book, after the government decides which one must be maintained, changed, or deleted.

What does “soft Brexit” and “hard Brexit” mean?

Both of these terms are increasingly used in debates about how the UK will leave the EU. Actually there is no standard definition for the two terms, but it is often used to describe how close the relationship between the UK and the EU after Brexit will be.

The ” hard Brexit ” condition is when Britain chooses protectionist policies by completely closing access to the EU single market. Thus, the UK will have full power to regulate immigration budgets, laws and rules in its own country.

While ” soft Brexit ” is softer. The choice of “soft Brexit” will still open some tariff-free access to a single market. But this choice is likely to also keep Britain “bound” to some EU rules, such as contributing to the EU financial budget and / or giving freedom to EU member countries to work in the UK. This condition is similar to what Norway is currently doing. Norway is not an EU member, but is a member of the European Economic Area.

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