The European Union which was once formed to provide solidarity, unity and a unified political entity to end global warfare has started to disintegrate.Since 1993 the European Union has remained a driving force in Europe. Early this spring there was talks about Britain being the first to leave. Many were skeptical and did not think that their departing would come into fruition. Alas, by a 51/49 vote the decision to leave the EU was cemented.
What once was a decision to unify the eastern world has over time began to take it’s toll on Britain. After World War II the UK clearly saw itself as a world power between then the US and the USSR but times have changed and it is no longer the world power it thinks it is. The UK felt it was being taken advantage of and their resources were being depleted and restricted by the rest of the EU. One of the reasons the UK decided to part is that it felt that too many policies were trickling down from the powers that be and were having too much say in their day-to-day to-dos. Another, they felt it had been paying too large a portion of the group’s budget, in particular the Common Agricultural Policy of farm subsidies. Also, Britain felt that it’s links with the EU was holding back its focus on emerging markets – there is no major trade deal with China or India as of now but leaving would allow the UK to diversify its international links.
All are legitimate reasons and somewhat thought out ways that it could improve from the exit. Alas what can happen if the EU doesn’t let them go so easily? One of the major draw backs is the level of access to the EU markets they will be allowed access to once they leave. The UK’s financial services can be deemed no longer equivalent to European rivals under the EU’s regulatory regime.Their financial sector, also the highest grossing, can take a huge hit and impair the economy for a long time to come. The decision is still up in the air but so far the referendum result caused political and economic turmoil in the UK. The pound, Britain’s current currency, slumped to a 31-year low against the US dollar and there are fears that the UK is heading for a recession again. The end result is clear, there will be hard times ahead for the UK but the question remains how hard?