Brexit: Brief History, Impacts, and Challenges

This document provides an overview of Brexit, including its brief history, impacts on the UK and other economies, and the challenges faced by the UK as a member of the EU. It discusses the economic, trade, and job implications of Brexit.

Brexit
1

Table of content
INTRODUCTION...........................................................................................................................3
BRIEF HISTORY OF EU...............................................................................................................3
IMPACTS OF BREXIT..................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
2

INTRODUCTION
In present times, in UK man concern is related to Brexit topic which means exist from
EU. EU is union of 27 member which was formed in 1993. Brexit is consider as an abbreviations
for British Exist. It means British exist from the European Union within June 23, 2016 (Koller,
Kopf, and Miglbauer, 2019). Where 52 % voted within favour of leaving the EU while rest of
them which is around 48 % were voted to remain as a member of EU. Present Report focuses on
the Brief history of EU, Impacts of Brexit from U.K and other nations economy and Challenges
facing the U.K as a member of EU.
BRIEF HISTORY OF EU
In 1945 after world war 2 European Union was set up to end war between countries and
nations. So for that the European coal united country in both economic and political way. This
was done to secure long lasting peace among them. Thus the 6 member were Belgium, France
Italy, Germany, Netherlands and Luxembourg. But in year 1950 there was cold war between
east and west.
In addition, in 1960 there was high economic growth period for European Union
countries. In that they did not charge custom duty while trading with each other. Furthermore,
they agreed to join food production as well in order to ensure that every one gets enough to eat
and fulfill citizen needs. So after some time there was high surplus of food which was produced.
However in 1968 there was riots done in Pairs. This lead to bring change in society and behavior
of people was recognized as 68 generation
Then, in 1973 Denmark Ireland and UK decided to join European Union and then led to
total 9 member in it. But the war of Israel led to creating energy and economic issues in Europe.
With that there came end to dictatorship in Europe as Salazar regime was over in 1974 and with
death of General of Spain in 1975. Moreover, in order to create jobs and improve infrastructure
in back ward areas. EU regional policy transfer huge sum. In 1979 the members can elect their
members. To protect environment law was formed, with polluter pays
In 1980 the Polish trade union became famous in world and all of nation started
following that. The tenth member of EU was Greece and then after 5 year Spain Portugal and
other countries became member of it. In 1986 a single EU act was signed and then a treaty was
formed of 6 years in which focus was on free trade between nations within Eu thus making it
3

single market. A major incident occurred in 1989 where Wall between East and West Germany
was pulled out in 28 years.
In 1993 the Single Market was divided into 4 : movement of goods, services, people and
money. So, 1990 was time of 2 treaty in it that is Maastricht and Amsterdam in 1999.
There was concern regarding how to protect environment and what to do in regard of
security and defense related issues within EU. In 1995 the EU added 3 member that are Austria
Finland and Swede. There was a village in Luxembourg which name was changed and it allowed
people to travel without passport. However, there are many people who study in different nation
with support of EU.
In 2000 Euro became common currency for EU to deal in trade and also in 2004, 10 more
country were added into it. In 2012 Nobel Peace prize was given to EU. Now, in present times
the most important concern of union is to solve environment issue. This is because of rise in
pollution and other natural hazards occurring in Europe. In addition, goal is to reduce emissions
as well and maintain sustainability. There is also concern of Brexit and what will be post impact
of it.
IMPACTS OF BREXIT
In order to improves the economic welfare within high unemployment as well as
deprived areas there can be extra funds as well as grants are available to the business. The
European social funds gives funds in order to creating job and vocation training to the needy
ones. This programs also works by direct spending on training people, infrastructure and
transport as well as helping people to learn also new skills (Hobolt, 2018).Various parts of the
United Kingdom have also advantages from these funds that also includes the Islands of
Scotland, Northern Island, Scilly Isles, West Wales, South Yorkshire.
Freedom to trade and work
One of the largest free trade areas is European market as Europe business enjoys a home
market of around 490 million people, selling goods as well as services without any trade
restrictions and tariffs as well as common safety standards. The various market also created
several competitive services, lower prices as well as employment. It has also opened new
opportunities and lowered business costs. Around 67% of the United Trade is alongside the
European Union as well as several benefits from inwards investments from firms within the EU.
For several one it has also enhanced the burden of the red tape (Stokes, 2016)
4

These regulations is consider as area where UK can look for improved performance. The
better regulation also begins to see the outcomes, examining the impact regarding new
regulations, even shortening as well as withdrawing the present ones. Some of them also argues
that the main advantage is free trade and while some argues that UK could retains the benefits
even if it left the EU. Such as Switzerland is not a part of EU but also at the same time benefits
from EU trade.
Co- ordinate economic policies
To assures that European businesses EU provides a forum where several member nations
can share their practices as well as several other experiences that can compete more effectively
within International Markets developing right infrastructure for the modern economy. Thus
some of them not in favoring new in fractures while other were in favor as non favoring people
are find themselves less suited to the change. Such as Government of the UK favors by using
Euro within principle but also join when economic conditions is well. While others are disagree
that Euro must be adopted at all.
Freedom ,security and Justice- In order to create freedom, justice, security as well as justice
across Europe EU members are working collectively. All the countries members except the
Ireland and UK have agreed to differentiate their border control with one another. They can
allow the citizens to travel freely without any check within borders. Ireland and UK have right
to choose in order to sign EU laws or not on the border controls, asylum and immigration. The
Ireland and UK also plays a vital role with several other members states within working in order
tackle abuse asylums system and illegal immigration. Enhanced Immigration which is consider
as a single market needs free movement of workers. It has also led to inflow to various
immigrants from Eastern Europe strain from several amenities and housing within United
Kingdom.
Higher utility Prices and EU law
EU enables foreign firms to buy UK utility. Water bills becomes increase up to 20 % and
EU’s high renewable energy targets will also cost £750 in increasing energy prices due to the
new EU regulations.
Challenges facing the U.K as a member of the European Union
Due to pandemic UK is already suffering from decreases in economic impact and another
factor is brexit due to which it will be highly affected in future. The economy has slowed as
5

several companies have shifted their headquarters outside UK. There are various impacts of
trade, growth and jobs. Some of the consequences particular to London, Ireland, Scotland.
Growth- one of the biggest disadvantages of the Brexit is that it damages the economic growth.
Of the United Kingdom. Because of Brexit the growth of the UK economy slowed down from
2.4 % within 2015 to 1.5 within 2018 The government of the UK reported that Brexit has led to
decline in growth of UK by 6.7 % over the 15 years . Such as if there is a trade agreement but on
the same side there must be restrictions also. On the day of the referendum British pound fall
from $1.48 to $1.36 the next day as it aids exports but also enhances the prices of imports. As
one of the pound also strengthen is also focused on the trade terms.
Trade – Brexit can reduce the Britain tariff trade with several other members of European
Union. Tariffs can raise export’s cost. That can also hurt United Kingdom exporters as their
products are becoming more costly in Europe. Within the UK Tariffs can also enhances the
prices of the imports. One- third of its imports also comes from the European Union. Because of
the Import prices inflation also creates inflation as well as lowers the standards of living within
U.K. The United Kingdom is also at the vulnerable position to droughts and heat waves caused
through global warming have decreased local food production. The firm also loses the benefits of
the EU’s begins the start technologies (Dennison. and Geddes, 2018). The European Union
focuses on these its members within the protection of environment, research, energy and
development. In addition to this U.K firms can lose the capacity to bid on public contracts within
European Union Nation firms can loose the capacity to bid regarding the public contracts within
any EU nation. The most vital loss to London is in banking services. Several Practitioners can
lose the capacity to operates within all members nations. It can also increase the cost of airfares,
phone services and even on the internet services also.
Jobs- Brexit especially impact negatively Young workers . As Germany is also have a shortage
of the labor around 3 millions people by 2030. Such jobs will not available to the workers of the
UK after Brexit. Employers are facing difficult times while finding workers. One of the major
reason is that EU born works fells around 95 percent within the year 2017. This can hit the low
as well as medium skilled laborers.
Ireland- Northern Ireland remains with UK. As Ireland that shares its border can remains a part
of European Union. Customs border between two Irish nation can be avoided through
Johnson’s plan. This can also reignited the trouble as it was a conflict which is 30 years old
6

within Northern Ireland between the Pro British Protestants and Catholic Irish nationalist. 2100
workers would also impact by the Brexit who commute to Great Britain.
London- Brexit has also lead to impacted on the growth of city tourism and other sector which
is known as the Financial center of U.K. Brexit also reduced the investment through 11%.
Scotland- It is voted against Brexit as according to the Scottish Government believes that staying
with EU is consider as the Best for them as well as UK. It also forces the United Kingdom to
enable for second referendum (McHarg. and Mitchell, 2017). To leaves within United Kingdom,
Scotland can have the call a referendum in order to the independence. It can then also apply for
European Union.
CONCLUSION
From the above it had been concluded that Economy of UK and other Countries faces a
huge loss due to the Brexit as it impacts negatively on economy, laborers who are medium and
low skilled. It also reduces the Britain tariff trade with several other members of European
Union. It also enhances the prices of the imports. Also, UK faced certain issues when they were
member of EU. This lead to movement of Brexit in it.
7

REFERENCES
Books and Authors
Dennison, J. and Geddes, A., 2018. Brexit and the perils of ‘Europeanised’migration. Journal of
European public policy, 25(8), pp.1137-1153.
Hobolt, S.B., 2018. Brexit and the 2017 UK general election. Journal of Common Market
Studies, 56(S1), pp.39-50.
Koller, V., Kopf, S. and Miglbauer, M. eds., 2019. Discourses of Brexit. Routledge.
McHarg, A. and Mitchell, J., 2017. Brexit and Scotland. The British Journal of Politics and
International Relations, 19(3), pp.512-526.
Stokes, B., 2016. Euroskepticism beyond brexit. Pew Research Center, 7, pp.1-16.
8