Brexit: Impact on the UK Economy

BREXIT
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Table of Contents
INTRODUCTION............................................................................................................................. 3
BRIEF HISTORY OF EU................................................................................................................ 3
CHALLENGES FACING THE UK AS A AFFILIATE OF THE EUROPEAN AMALGAMATION...............5
BREXIT IMPACT ON THE UK ECONOMY 500...............................................................................9
CONCLUSION............................................................................................................................... 14
REFERENCES.................................................................................................................................15
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INTRODUCTION
Brexit refers to the “British Exit”, the UK’s departure over an European Union (BBC, 2019). In
June’16 on 23rd, The Brexit survey was whispered in the UK. The economic effects of Brexit
became the major area of debate after the Leave vote of UK.
The composition emphasizes on the possessions of Brexit over the UK economy by considering
the areas of EU membership and the challenges born out of the membership. The essay will
cover each aspect of Brexit that may directly or indirectly throw an impact on UK economy.
BRIEF HISTORY OF EU
EU refers to the “European Union” involving 28 European countries. It is a political & economic
union that allows free movement and free trade of people to work and live in whichever
country they choose (BBC, 2019).
 ORIGIN OF THE EU
The EU was recognized when the Maastricht Treaty came into power in the year 1993. The
European Union traces its origin to the ECSC (European Coal & Steel Community) and EEC
(European Economic Community) which was respectively came into force in 1951 as a Treaty of
Paris & 1957 Treaty of Rome.
 DEVELOPMENT AND GROWTH OF THE EU
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The European Union’s action has the main purpose of inspiring commercial progression in the
companion nations while emphasize over auxiliary Help for profession, isolated segment
expansion, provincial monetary incorporation and Civic investment & Macroeconomic
Valuation. Also, an evidence study of EU states that there is a connection among the economic
expansion & commercial progress (Asteriou and Spanos, 2019). The result of the study
investigated that commercial change has a huge influence on the financial progress and
economic activities of the developed and developing countries.
 CURRENT MEMBERSHIP OF THE EU
As of 2019, the European Union consists of 28 member states. All the associate states are
exposed to the commitments and rights of the participation. The member states of EU are
exposed to the binding laws within the common legislation.
In the year 2016, the UK held survey on EU participation in June which resulted to be in the
favor of leaving which accounted at 51.89% votes cast. Thus, the government of UK formally
initiates the process of withdrawal on 29 March, 2017 and invoked Article 50 which is known as
“Brexit”. This implies that UK was scheduled to stop being the member of EU. The result of the
2016 survey on UK’s participation in EU has the potential to significantly change both EU-UK
security landscapes (van Ark, 2019).
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