Brexit and its repercussions on Britain and the world

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Britan’s exit from European Zone shortened to “Brexit” was a major highlight of the news and a trending tag on social media some days back. United Kingdom voted to leave the European Union after a membership of 43 Years which will reduce its count of members to 27 from 28. 51.89 percent voted in favor of exit and 48.11 voted against. It was a leave win by 1269501 votes. It was a moment of delight for the supporters and the people who had voted against it were disappointed by the same. 

‘’We want our country back”, “75% of our laws are made in Brussels” read some of the placards and posters held by the supporters of the exit. Some of them said that the Brexit is the beginning of end for European Union. The campaign was lead by Boris Johnson and he ultimately turned out to be victorious and will replace David Cameron as the next Prime Minister of the Country. 

“British People have decided to exit and their will must be respected,” he said after the results were made public. Cameron has served the PM of the country since 2010 and will be stepping down before October. The historic exit created political, fiscal and financial instability all over the globe. Stock markets in Europe and Asia plunged after the information was in circulation. Sensex went down by 600 points whereas NIFTY also plunged by 181 points. London’s FTSE, which tracks 250 mid-sized companies, suffered a loss  of 7.2% . US stock market was closed at the time of the event but when it opened the Dow Jones slumped 500 points down, the lowest in 10 months as Markets don’t like surprises at all. 

It impacted negatively on US as the both countries are economically well connected. We will be surprised to know that Brexit caused a loss of $2 trillion in overall world markets. Pound also slumped to a 31 year low of 92.90 INR as a consequence of the same. “Sterling gets pounded” was quoted by a news channel after the event. 

The event has global financial, economical and political repercussions and will definitely affect British people in Europe and European people living and working in Britain. It will affect travel of people and will also affect the movement of goods and selling of services. United kingdom will in fact have to form new relationships with the countries they had been maintaining since 43 years. Britain will be now having its own laws relating to taxes, own border control, trade policies and immigration laws. The exit will affect many jobs in UK and the same could be seen when Morgan Stanley, a multinational financial services corporation moved 2000 jobs out of United Kingdom to Frankfurt. While a majority termed the exit as blissful, some termed it as a blow to the economy. The exit will definitely have many positive and negative consequences for the UK but what actually happens will have to be seen in coming future.

 

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