Brexit and its Political and Economic Impact on the United Kingdom

Abstract

Brexit, the withdrawal of the United Kingdom from the European Union after fourty-seven years of membership, has been on top of news in the past five years. Eurosceptics, driven by a strong sense of nationalism and sovereignty have always expressed concerns about the UK’s membership of the EU and the influence of the latter on their life style evoking especially immigration and unemployment, security and terrorism, and economic losses. In 2016, they succeeded in obliging the Conservative pro-Europe government of David Cameron to organize a referendum so that the British decide their future in relation to the EU. After an electoral campaign that witnessed a heavy involvements of the government and cross-party groups, a referendum was held on 23 June 2016 with a direct question: Should the United Kingdom remain a member of the European Union or leave the European Union? The vote turnout was remarkable and the results were unexpected as 51.9% of the vote cast were in favour of the Leave vote. The government pledged to respect the result and implement it even though it was not legally binding. Negotiations with the EU turned out to be very tough causing PM Theresa May to resign and be replaced by Boris Johnson. Investigation the Brexit the political and economic impact of Brexit on the UK now is based on prediction given its recentness, but some impacts are already observed. Trade with the EU is shrinking, the flow of FDI is slowing, and labour market is in recess. However, forecast suggests the UK economy will adapt quickly to the new scheme. Politically, the British people have become interested in politics like never before. The negotiation stalemate that gripped Britain in 2019 and debate resulting from it served to stimulate voters’ interest in politics. Internationally, the UK has to rely on its traditional “bridge” role between Europe and the United States and on its military and intelligence power to preserve its influence in a rapidly changing world.