Brexit: Everything You Need to Know
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Assuming you haven’t been living under a rock since late 2016, we all know that the long-awaited official “Brexit Day” has arrived. However, if you’re not in the know on all things the UK and world politics, here’s a breakdown of it all.
What is Brexit?
Brexit is the official name of the British (UK) exiting the European Union. British + Exit = Brexit. Aside from the name-giving celebrity couple names like Bradjolina a run for the money, it’s something that will be incredibly historic for our world and the UK alike.
As there are several potential negative consequences to the UK Brexit, many might question why 51.9% of its population voted in favor of the separation.
Why the UK want Brexit?
There are a few reasons why this makes sense for the UK to do what a lot of us may not have thought about:
- For starters, leaving the EU would mean that all UK decisions would be decided completely by the UK, not the UK and the EU.
- Another reason for the UK’s succession from the EU is immigration. Since the UK’s joining with the EU, immigration has skyrocketed. Immigration laws are more liberal throughout the EU, making it easier for anyone to live wherever they would like throughout EU countries. Those in favor of Brexit (33% of voters) want more control over the UK’s borders; something these voters feel can only happen if they leave the political union.
- Nationalism and identity also had a great role to play in the UK’s final decision to leave the EU. Many British citizens didn’t feel that the UK integrated very well with the EU as most Britons identify as Britons, not Europeans. This mentality is evidenced in the latest Eurobarometer reports, where 64% of UK citizens deny any feelings of identity with Europe.
What happens after Brexit?
After three and a half years, three different prime ministers, several drafted deals, and a handful of bills and referendums, Brexit will finally take place today, January 31, 2020, at 23:00 GMT.
Then what happens? What can we anticipate happening within the UK after its great withdrawal from the EU? There are a few predictions.
Throughout the Brexit transition period (from January 31, 2020 - December 31, 2020) the UK will begin to depart from the union. According to BBC News, “until the transition ends, most things will stay the same.”
For travelers, this includes the freedom of movement, for EU and UK citizens alike to travel and move/relocate freely throughout union countries. Here's more on what Brexit will mean for UK travelers.
Free trade deals between the EU and the UK will also need to be established during this time. While there's been some skepticism on how these trade deals will play out, Exchange Bank of Canada's Director of FX Strategy, Erik Bregar, states that "pessimism surrounding the 1-year Brexit transition period (which begins next week) has become a bit overblown. GBPUSD’s chart structure has dramatically improved in just 24hrs and we think a NY close above the aforementioned 1.3130-40s resistance level could portend some positive UK narratives to come." Read more on this reporting here.
Ultimately, the outcome of Brexit is still hard to determine at this point in time. There are many factors and leaders involved. From January 31, 2020, on, all we can do is observe and wait until the final agreements surrounding the “British Exit” have been made.
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