United Kingdom Of The European Union

On Thursday, June 23, 2016, United Kingdom voted in a referendum to determine whether it should remain or leave in the European Union. After more than thirty million votes, over seventy percent of the citizens of the United Kingdom, the result was an exit from the EU by the minimal margin of two percent. Although, the United Kingdom does not actually exit the European Union until two years after the vote, in accordance with Article Fifty of the Lisbon Treaty, the United Kingdom is already feeling the effects of the vote due to a drop in confidence. Immediately after the so-called “Brexit”, multiple changes occurred. Firstly, the Prime Minister of Britain, David Cameron stepped down, being replaced by Theresa May. Furthermore, the break from the European Union appeared to have drastic economic consequences for the British. Directly after the break, the British stock market fell greatly. Most importantly, the value of the pound shrunk drastically, dropping eleven percent of its value versus the US dollar within two trading days. This drop in the value of the currency greatly alarmed British citizens as they witnessed themselves become poorer in comparison to the rest of the world overnight. This revelation caused many previously staunch “Brexit” supporters to reevaluate the position and debate whether they would have voted in favor of the split if they had known the consequences. Even large companies were worried about the results of the referendum. A poll done by the statistical firm KPMG found that around three fourths of the CEOs that they asked were considering relocating headquarters due to the unpredictability of the break with the EU and the risk to business that it raised.

However, the “Brexit” did not solely introduce prob...

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...litical ties. Yet, it is no without flaws. The fact that the states of the economies of the member countries are so diverse poses problems for the union. Outside the union, countries have freedom to make decisions for themselves rather than be bound to the decision of the block. The decision of the British people was a risky choice, leaving the relative safety and stability of the union. It is too early to tell how this gamble will play out in the long run, but at the moment, the British economy is trending in the right direction. The United Kingdom appears to be recovering from the initial shock it was subject to after the referendum. The British leaders still have much work to do untangling the United Kingdom from its longtime ties with the European Union. Yet, if they are successful, who knows, the decision to leave the union may turn out to have been for the best.