Pros And Cons Of The European Union

1354 Words6 Pages
The United Kingdom original joined the European Union’s predecessor, the European Economic Community in 1973, but in 2016 they decided to have a referendum to decide whether they would stay in it or depart. The United Kingdom’s withdrawal from the European Union will have result in a weaker economy, lost jobs, and limited immigration in the United Kingdom. After years of planning and persuasion, on July 23, 2016, the United Kingdom held a referendum vote to determine whether they would enact Article 50 of the Lisbon Treaty which would allow Great Britain to leave, also known as Brexit (British Exit), the European Union. After tallying votes the Electoral Commission announced the results, the leave side won the vote 51.9% to 48.1% for the…show more content…
The European Union is an agreement between 28 countries in Europe, the countries operate independently but are free to trade with each other without tariffs and are subject to governing by the European Union. According to Alex Hunt and Brian Wheeler of BBC one of the arguments for leaving the European Union is that the United Kingdom has to pay billions of pounds in membership fees annually to be part of the Union and people feel as if the money could be spent elsewhere in the government (Hunt and Wheeler). A main point of the staying side of the argument is that the European Union is beneficial to the economy as it promotes free trade throughout Union and allows people to travel from country to country without obtaining a visa (Hunt and Wheeler). The official departure from the European Union may take a few years to complete, and although unlikely, may not happen, but until then the uncertainty surrounding the likely exit will have major implications starting with the economy in the United…show more content…
Due to the uncertainty around the future of the British Pound, investors will stay away from it and move towards safer investments. As recently as October of 2015, the British Pound was worth $1.50 United States dollars, immediately after the results of the referendum the British Pound experienced a sharp sell off and hit a 31 year low of $1.32. As Great Britain moves towards freedom for the Union, the pound will continue to drop shedding billions from investments and causing individuals to take their money out of domestic assets. Taking money out of investments and out of the stock market could cause an economic slowdown. The Bank of England cut interest rates in half to promote borrowing and investing in hopes of avoiding an recession (Hunt and Wheeler). The swift action from the Bank of England signals that they believe ramifications from Brexit would be serious enough to cause a recession or economic slowdown. Although Great Britain would save billions in membership fees to the European Union, the potential lack of free trade would severely hurt the United Kingdom. Sam Ashworth-Hayes of Full Fact found in 2015, 44% of exports from the United Kingdom were to the European Union (Ashworth-Hayes). Assuming tariffs are added to imports and exports, a very likely scenario, the United Kingdom would lose a significant percentage of it’s export revenues. The falling value of the
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