As most of us have seen in the news, the United Kingdom has voted to leave the European Union. For those who might not follow the issue closely, here is a quick rundown. The United Kingdom held a referendum to vote on whether to leave or stay in the EU. The vote turned out in favor of the "Leave" faction that is dominated by the Independence Party of the United Kingdom. The UK Independence party fueled a "Leave" campaign that ran on immigration issues as a major component to its support. What we are now seeing are concerns and speculations about what will happen with the United Kingdom in the near future.
This vote has for the moment shocked the world and caused for other members to question their place in the European Union as well. Scotland being of these countries has discussed holding a second referendum to vote on becoming independent of the United Kingdom, so they can petition to become a part of the EU individually. According to Vox, Northern Ireland may also look to dissent from the United Kingdom and become reunited with the rest of Ireland. Vox states that "A similar, but possibly more troubling, situation could emerge in Ireland, which has long been divided between a protestant North that's part of the UK and an independent Irish republic in the South. Tensions across the border have been minimized by EU rules guaranteeing the right to move across the border." Along with these questionable relationships between the individual states of the United Kingdom, are concerns for global economies, and Britain's ability to maneuver the regulations and rules for trading, without the access of the European Common Market.
Financially, "Brexit" has affected many in the Global Market. In the United States, the DOW Industrial average dropped 611 points by closing bell Friday, it's lowest drop since August. According to CNN, "The U.S. is itself already feeling the aftershocks -- American stocks were down more than 600 points at the closing bell Friday afternoon". According to the New York Times, "American shares were down 3.6 percent, British stocks were off 3.2 percent, while broader European shares dropped 8.6 percent". Great Britain, on Friday saw the British Pound take a massive hit in value in comparison to the U.S. dollar. The pound dropped to its lowest level since 1985. Vox Stated, "The UK government has estimated that exiting the EU could cause the British economy to be between 3.8 and 7.5 percent smaller by 2030 — depending on how well negotiations for access to the European market ultimately go." Some believe that this victory is hard-won because of the negative effects on the British economy, but Boris Johnson, the former Mayor of London thinks different. He believes that Great Britain will be able to set taxes and regulations according to the needs of the country, and also more controlled borders. No doubt that this is a jab at immigrants who hold jobs in the UK. Vox estimates over 3 million immigrants work in the UK from other countries in the EU (a right to all citizens of countries in the EU). Meanwhile, only 1.2 million people from the United Kingdom hold jobs in other countries.
The coming two years may prove difficult for the United Kingdom in negotiations with the EU. They will have to settle the problems of trade with the United Kingdom, immigration policies, as well as a transition to new power when David Cameron is expected to resign from office in October. It is speculated that the United Kingdom will give their official notice of leave to the EU at the EU Summit on June 28th and 29th, which will begin the long negotiation process drawn out in Article 50 of the Treaty of European Union.
