If you have tuned in to the news recently, you have probably heard of Brexit, or Great Britain's upcoming decision to either exit or remain part of the European Union. On this upcoming Thursday, June 23, a referendum will be held, allowing U.K. citizens the chance to vote yay or nay on the question, "Should the United Kingdom remain a member of the European Union or leave the European Union?" While the issue is fairly complicated, this article will attempt to distill the arguments of both sides as well as the possible impact this decision could have on the U.K., Europe and the United States.
What exactly is the function of the European Union?
The EU is made up of 28 European countries. The three main governing bodies are the European Commission, European Parliament and the Council of the European Union. All three groups are comprised of representatives from each member country and make the laws and regulations for the EU.
Being part of the EU has its benefits, as all of the countries involved are part of a free trade union and 19 of the countries have adopted the Euro as their form of currency, (the U.K. still uses the pound). In addition, members have the benefit of freedom of movement, meaning that citizens of one EU country can travel to another with little hassle.
Leaving the European Union
The main argument for leaving the EU has to do with autonomy. Many see this as a chance for the U.K. to regain sovereignty and the ability to make decisions that are tailored to its specific needs. Some see the business and trade regulations that come with the EU as burdensome and unwanted, and with the recent refugee crises, the idea of freedom of movement has become more complicated. Many in the U.K. want to reserve the right for their government to make its own decisions regarding immigration and migration instead of following along with the EU. The former mayor of London, Boris Johnson and the U.K. Independence Party are both supporters of the motion to exit.
Staying in the European Union
Those who believe the U.K. should remain argue that the position that Great Britain holds in the EU allows it to have a bigger voice on the world stage because its vote impacts decisions made in the rest of Europe. They also argue that the benefits to the economy that come from the free trade agreement are too valuable to give up and that by leaving, the U.K. would be forced to renegotiate trade deals, which would be a long and arduous process. They also point out that while the idea of freedom of movement may be complicated, the benefits are worth it. The most well known supporters of staying are Britain's Prime Minister, David Cameron, European countries like France and Germany and big corporate businesses.
What would the impact be on the United States?
The bottom line is that the U.K. remaining in the EU would benefit the U.S. the most. President Obama has voiced his hope that they will stay part of the EU and many large Wall Street banks have donated money to organizations advocating remaining. Economically speaking, the U.S. employs over a million people in the U.K., "and many firms consider it the gateway to free trade with the 28 nations that make up the EU."
According to the Economist, the vote is pretty evenly split among the U.K. voting public, as illustrated by this chart, however, there are some interesting demographics at play. The majority of 18 to 24 year olds vote to remain in the EU while the majority of those 60 and above vote to leave. There is also a division among class lines, where the majority of the rich vote to remain and the lower classes tend to advocate leaving. Nevertheless, the vote on Thursday is going to be close, and either decision will have an economic impact not only on Britain and Europe, but on the rest of the world.
