BREXIT was an idea a few years back but it is reality now. With Britain out of the European Union, it might utilize certain freedom but there are some consequences that it is facing. These political and economic consequences will determine the future of Britain that has no ties with the EU.
Socio-Economic Consequences for UK:
- After Brexit, the EU has become UK’s biggest trading partner, and the UK will become EU’s third biggest trading partner after the United States and China.
- UK has the opportunity to join new economic ventures. It can choose China freely to be its top trading partner in coming years. It can shift its economic alliances towards Asia.
- The UK’s contribution to the EU budget in 2016 was €19.4 billion. After removing about €7 billion that the UK receives in EU subsidies, the loss to the EU budget comes to about 5% of the total.
- Another economic impact might come in terms of inflation. With certain subsidies removed, the UK might face price hike due to increase in cost and final production of goods.
- UK will have more control over its own money without any interference of the EU.
Political Consequences for UK:
- The Brexit has reinforced anti-immigration parties throughout Europe. With UK out of EU, there will be less immigration from neighboring countries as compared to what happened in the past.
- The UK was a significant player in the European Parliament and the Council of the European Union. Its absence will impact the ideological balance within the EU institutions. Its absence will certainly affect the working of EU along with the latter’s working relations with the USA.
- With the UK out of the EU, the latter’s foreign policy could be less dominant. The US saw the UK as a bridge between the US and Europe, and the UK helped support the EU positions to the US and provide tougher responses to Russia.
- The UK was allotted 73 seats in the 751 seat European Parliament, which became vacant upon its withdrawal. 27 of these seats were redistributed to other countries, with the remaining 46 reserved for potential new member states, reducing the number of MEPs to 705.
- In the wake of the UK’s vote to withdraw, polls showed that support for the EU surged across Europe. Surveying shows that the EU has the highest political support in 35 years. But, this does not rule out the fact that more members of EU might want an exit depending upon what UK will achieve out of it in near future.
With the UK out of the European Union, many political and socio-economic impacts have been seen. Some more might appear in distant future. These impacts are of positive as well as negative nature for UK and EU. These consequences will affect the region as well as the whole world to some extent. It is yet to see that how successfully UK utilizes this exit from the EU. If it gains more, there is possibility that certain other members might also leave EU.