What is BREXIT?
Most of us have heard the word called Brexit but still a large number of people don’t know what Brexit stands for? BREXIT is the new acronym for the British exit. United Kingdom (UK) has planned to leave the European Union (EU) by 31st of Oct before 23:00 GMT. The whole agenda is termed as Brexit.
What is the European Union?
European Union or EU is the union of the 28 European countries for economic and political affairs. The union has trade and customs rules which apply to all the countries that are a part of it.
What are the rules of the EU?
Under the EU, all the countries will have to impose the same amount of taxes on goods coming from outside. However, EU countries can have free trade and movement of goods and people across these 28 countries. The countrymen can live anywhere, work and invest money without any permits or taxes.
Why is the UK leaving the EU?
From the day the UK joined the EU in 1973, it started thinking about all the advantages and disadvantages of being a part of this union. They even held a referendum in1975 about whether they should keep up this membership or not where 67% of voters supported the membership.
Later in 2013, David Cameron came up with the idea of public voting for the membership with clear and wide options of whether to stay or leave. As a result of the 2016 referendum, 52% of people voted to leave the membership. It was the highest turnout of voters of about 72%.
How the voters’ turnout did take place?
The voters were divided into clear terms, old and young, villages and cities. Older people went in support of Brexit whereas young people voted against it. Similar was in case of cities where the urban preferred EU whereas the smaller cities and villages went for Brexit.
Why is Brexit delayed after huge support?
Even though the public voting went into Brexit support it is still expected to delay a little more than the announced date as per previous history and lack of thinking. Breaking up to 46 years of an economical bond is not an easy job.
The referendum gave the decision, but what will be the shape of the relationship the UK will have with the EU is a question that needs a lot of attention. UK foreign investment and economy heavily depends on the EU. Economists predict their economy will fall 4 – 9 %. Different companies have threatened to leave the UK if the Brexit took place.
Airbus leaving the UK?
Since the Brexit is the topic of the hour, different companies often announce or threat to leave the UK which will give a major setback to the economy. Airbus which employs 14,000 people and supports more than 100,000 other jobs is planning to leave the UK making people unemployed and major financial crises.
Did Prime Minister May efforts rule away?
Prime Minister Theresa May triggered Article 50, the formal process to leave EU, and kicked off negotiations for the future ties of EU and UK. After 18 months of discussions when she first presented her plan in parliament it was rejected badly with a margin of 240 votes.
For the second time when presented, she made no big achievement however the margin went to 149. Her third attempt to pass her bill was again rejected but with 58 votes. Ultimately she resigned from her job, the seat of EU, as per her announcement that she couldn’t agree labor party, the opposition, conservative party, the government and the Brexitians.
What was Theresa May’s (Ex-Prime Minister) plan?
Theresa May ensured the local citizens that Article 50 will stop the free movement of people across the UK along with taxes and customs on trade and goods. However, this will become a threat to the people’s job and the hope of young students to study abroad and tour the EU. Theresa May’s deal commonly known as “Brexit deal” covered the important points like:
- Rights of UK and EU citizens.
- Taxes UK has to pay to the EU.
- The Irish backstop.
What went wrong in the Parliament?
The UK parliament is highly divided on opinions among the ruling conservative party and the opposition labor party. To convince the majority for the wholesome decision was one huge task. When the plan was presented in the parliament majority went against only at the Irish backstop. Everyone wanted an amendment of the plan for this point.
Why Irish Backstop a Problem for all?
The Irish backstop is the Irish border that is a backstop to Brexit. The Irish border is the only land connectivity of Northern Ireland, part of UK with Ireland, EU. According to the Brexit plan, the border will function in a similar way it was functioning before. No taxes or money will be taken or checkpoints to be held at that border.
By doing so, it will cause the UK to remain into the rules and customs of the EU along with single market status at Northern Ireland. The passionate Brexits believe that if once agreed the backstop will become permanent and the basic idea of Brexit will fail.
Single market vs. EU customs
By single market status of Northern Ireland, all the goods, trade, services and people can move freely across the 28 countries of EU along with the European Economic Areas like Iceland, Norway, Liechtenstein, and Switzerland.
However, by EU customs it applies that all the countries of the EU will charge the same amount of taxes. They cannot charge differently as per their wish and neither will they charge to one another.
Boris Johnsons’s no deal agreement
Boris Johnson, the successor of Mrs.May took hold of Brexit issue and announced that he will make Brexit possible even if no deal is finalized. But this announcement didn’t go well for the parliament and the legislative authorities. They stood against him and caused him zero support in parliament. Ultimately he announced that he will come up with an agreement without Irish backstop before the deadline.
But it will leave the UK with a severe financial setback. However, Johnson said he took an extra £2.1bn of funding to prepare for a possible no-deal outcome on 31 October.
Brexit and its Extensions
As the Brexit is an interesting event on the global map so is the extension history. After the referendum took place, the official notice of the UK leaving EU was made in 2017. As per Article 50 of the European Union’s Lisbon Treaty, a legal process setting it on a two-year path to departure the Brexit was decided to take place on 29 March 2019.
However, when Amy’s agreement was failing at the parliament the EU pushed the date till 12 April thinking that the UK will think quickly and wisely as the European Parliament elections were approaching. But the extension didn’t work and May had to request the EU to extend the Brexit date to which 31st October is finalized.
How will 3rd extension work?
Since the chances of Brexit without a deal is increasing there is a possibility that the MP’s will force the government to ask for another extension.
Mr. Johnson will have to ask the European Parliament on 19 October to extend the date till 31st January 2020. If the EU wants a different deadline, Johnson will have to accept it unless the MP’s reject it within two days. However, for any deadline date to be proposed by RU, all the members of the EU have to agree on it which is an impossible task.
In case, MP’s agreed to the no-deal Brexit or the backstop agreement than the chances of extension dies out.
Any early elections planned?
As the deadline is approaching without any final decision, Mr. Johnson said that they will reduce the time to the lawmakers to decide how the Brexit will work. Further, by the first week of September, the parliament has to block the Brexit with or without a deal agreement.
If the idea of Brexit extension is supported by MP’s an early election in search of more support to the no-deal agreement will be held by 15th October. However, the opposition still holds their stance that they will not back Brexit until a no-deal agreement will be rejected.
Will Brexit affects a common man?
Brexit will affect every individual living in the UK quite badly. Some of the major implications will be
- Shortage of food.
- Shortage of medicines.
- Delay at ports.
- Disrupted routes for trade.
- EU citizens in the UK will have to apply for settled status, allowing them to remain in the country.
- UK citizens in the EU will have to register as residents of the country in which they live.
- UK citizens traveling to the EU will need to ensure passports are valid for at least six months on 31 October.
- UK individuals require an international driving permit if they want to drive a car.
- European Health Insurance Cards (EHIC) will no longer be valid.
- Pet passports will also no longer be valid.