It is going to be almost a year since Britain decided to leave the European Union (EU) and the European Atomic Energy Community. Britain’s Exit, coined as Brexit, was open to many discussions across the global forums. It was expected to leave an impact on various platforms, including politics, trade, economy, and more. The effect of Brexit continues to reverberate across sectors, and here we will look at what it actually means for other nations.
Before we delve further into the impact of Brexit, let us try to understand what Brexit actually is.
What is Brexit?
Brexit is, as mentioned before, a portmanteau of words Britain and Exit, which actually refers to the country moving out of the European Union. The deal refers to the changes it will bring forth in migration, trade, and security between the other countries of the bloc and Britain. While the initial talks on leaving the bloc started nearly half a century back, the actual legislation was passed only in 2020 under the guidance of the British Prime Minister, Mr. Boris Johnson.
The decision has been made, and more than 50% of the voters have agreed upon it. And yet, the implications of what this could bring for the country and neighboring nations are still not completely envisaged. It is still under discussion on the way forward across different sectors, including the trading regulations, security concerns, governmental rules to follow, and so on.
All around impact
Being one of the largest of the members in the union, the exit of Britain will definitely leave a huge impact on the political, social, and economic spheres for the country itself and for the world. According to the research and studies conducted by experts in the field, quite a few countries other than Britain will face challenges on their political front with Brexit. The deal is expected to bring forth fresh challenges and a complete makeover in the policies of the European Union.
- Ireland and the Netherlands are seen to be the most vulnerable of the nations as they have trade and investment ties with London.
- Germany will also feel a considerable impact, not in the trading sector, but more in the political front as they lean upon the UK’s interference in EU politics.
- Denmark and Sweden will also have some repercussions to face with the Brexit deal going through.
- Apart from the EU member nations EU, the global trade, the economy will also have an impact wherever there is a touchpoint with the UK. The trading regulations will change, and there could be a serious impact on the economy of the UK as they have heavy ties with the EU states. Of course, there will be more paperwork to deal with.
- In terms of the movement of people, it will not be easy for citizens of the EU to move to the UK or vice versa as before. Whether the movement is for working or to live in another country, there will be a new set of regulations to follow.
- There might be changes to the passport, driving licenses, and other documentation.
- In terms of the EU’s budget, there might be a deficit, as the UK has been a major contributor every year.
- There will be possible inflation, higher prices for communication, and travel in the future.
- UK economy will face the consequences owing to the uncertainty around the new trading regulations and as per the estimate by the UK government; the growth will go down by nearly 6.7%
- With local food production already endangered, UK will have to rely on other countries for food supply. With inflation and increase prices, this could be a hindrance to the UK.
While the EU and UK have been working on the agreements for the exit, the deal is yet to be finalized, and they are still discussing differences that need to be resolved.
It is true that Brexit is going to bring in more adjustments and compromises for the common people. There will be more regulations, delays, and additional paperwork in places where it did not exist earlier. The country will have to build completely new infrastructure across sectors like security, trading, etc. It remains to be seen how the new deal between EU and UK shapes up and how the local government mitigates the challenges rising from it.
References:
https://www.nytimes.com/interactive/2019/world/europe/what-is-brexit.html
https://www.bbc.com/news/uk-politics-32810887
http://globalsustain.org/files/Atradius_Economic_Research_Brexit_Top_5_ERU091503en.pdf
