.

ZGE 1102

BSMA - B2B

THE COMPELLING REASONS FOR THE BRITAIN’S EXIT FROM THE EUROPEAN

UNION

The U.K. joined the European Union in 1973, back when it was known as the

European Economic Community. But it is more than just a free-trade area, founded on

the “four freedoms:” the movement of goods, people, capital and services. Citizens of

any European union’s country can live and work freely in any other; certain laws and

citizens’ rights apply across the bloc; and the E.U. runs several agencies that coordinate

scientific, economic and technological cooperation between members.

‘Brexit’ is a contraction of ‘British exit’, and it is the word used to define the UK’s

departure from the European Union. European Union is a collection of countries that

used to fight a lot. For example, in World War II countries within Europe fought against

one another, and it greatly hurt the [Link] after WWII, many countries felt it was

important to integrate European countries — starting with the coal and steel industries

and then expanding to a broader set of trade [Link] initial referendum took place in

June 2016, with 51.9% voting to leave, and 48.1% voting to [Link] June 23, 2016,

the people of the United Kingdom voted to leave the European [Link] December 24,

the UK and European Union finalized a trade deal that went into effect on January 1,

2021. As of January 1, 2021, the transition period with the EU officially ended, and the

UK will now operate an external border as a sovereign nation and therefore no longer

committed to the bloc’s free movement of goods, services, capital and labor. It is also no
 longer inside the bloc’s customs

union. The U.K. left legally and

politically on Jan. 31, 2020, but

entered a transition period

when economic, trade and

security relations remained

unchanged. The United Kingdom's exit from the European Union is transforming trade

with the EU and other strategic partners around the globe. The EU is left with 27

countries and a combined population of almost 450 million people that share a set of

rules and laws covering the economy, trade and legal and security cooperation. The bloc

grew out of a grouping of six countries that sought economic cooperation in the 1253

years after World War II. Britain joined the bloc in 1973, along with Ireland and

Denmark.A deal between the U.K. and the European Union came on Christmas Eve,

days ahead of an end-year deadline, giving Britain significant freedom to depart from EU

regulations and sign free-trade deals with other countries.

The United Kingdom was a member state of the European Union and of its

predecessor the European Communities from 1973 until 2020. Since the foundation of

the European Communities, it has been an important neighbor, and was a leading

member state until its withdrawal from the EU on 31 January 2020 as a result of Brexit,

ending 47 years of membership. In general, the law of the European Union is valid in all

of the European Union member states. However, occasionally member states negotiate

certain opt-outs from legislation or treaties of the European Union, meaning they do not
have to participate in certain policy areas. The United Kingdom had four opt-outs in place

before leaving the Union– the most of any EU member state, making it the least

integrated member state.

HERE ARE THE COMPELLING REASONS FOR THE BRITAIN’S EXIT FROM THE

EUROPEAN UNION :

1. The EU adds relatively little economic value

- British exports of goods go

disproportionately to the world outside the EU,

so the EU’s common market is of less use to it.

Unfortunately, the EU has never been able to

create a truly common market in services, in

which Britain dominates. And the UK imports a lot of food, which the EU makes more

expensive.

2. Sovereignty

-the rise of nationalism across the [Link]’s

a growing distrust of multinational financial,

trade, and defense organizations created after

World War II. The EU, the IMF , and NATO are

good examples of this.E.U.-wide laws were

undemocratic and infringed on the sovereignty of

the U.K. parliament.

- Nationalism and identity also had a great role

to play in the UK’s final decision to leave the

EU. Many British citizens didn’t feel that the UK

integrated very well with the EU as most Britons

identify as Britons, not Europeans. This

mentality is evidenced in the latest

Eurobarometer reports, where 64% of UK

citizens deny any feelings of identity with Europe.

4. Immigration

-Another reason for the UK’s succession

from the EU is immigration. Since the UK’s

joining with the EU, immigration has

skyrocketed. Immigration laws are more

liberal throughout the EU, making it easier

for anyone to live wherever they would like

throughout EU countries. Those in favor of Brexit (33% of voters) want more control over

the UK’s borders; something these voters feel can only happen if they leave the political

[Link] immigration crisis in Europe was a trigger. Some EU leaders argued that

aiding the refugees was a moral obligation. But EU opponents saw immigration as a

national issue, as it affected the internal life of the country. Steering clear of this issue
was an important driver for the “leave” vote. Fears that the U.K. was suffering because of

immigration also motivated many voters to choose to leave.

5. The failure to develop a common and effective response to migrant flows,

threat of greater migrant flows into the UK and The sheer volume of people

moving to the UK from the CEE states, and from southern Europe

- An additional European generator of

votes for the leave campaign was the

perceived threat of greater migrant flows

into the UK. Technically of course, the EU is

not in the Schengen area, and has its own

borders. Therefore, the German decision in

the summer of 2015 to abandon the Dublin

Regulation, which required asylum seekers to apply for asylum in the first EU state they

arrived in, and welcome in Middle Eastern migrants did not affect the UK. However, the

unilateral nature of the German act to abandon the Regulation and the subsequent

attempt to force Schengen members to accept migrants did not only generate greater

hostility against the EU and Germany across the continent, but also further undermined

British support for the EU. Perceived bullying by Germany of other EU states, and the

fear that one way or another EU bound migrants would end up in the UK played into the

hands of the Leave campaign.

-It is noticeable, in parts of the country, such as London and the major cities, where there

had long been foreign communities, the British were much more relaxed about
immigration and voted heavily to stay in the Union. However, in parts of the country

which had recently seen a surge of new foreign workers, they voted heavily to leave. The

Leave vote also surged in parts of the country where there was very little new or

historical immigration, but where voters feared that immigration might also soon arrive in

their neighbourhoods.

6. Dysfunctional Economic entity.

- The EU failed to address the economic problems that had been developing since

2008… for example, 20% unemployment in southern [Link] difference between the

lives of southern Europeans and Germans—who enjoy 4.2% unemployment—is

profound. Europe as a whole has stagnated economically.

7. Britain follow Europe’s lead

-They believed that remaining in the European Union would make Britain follow Europe’s

[Link], they didn’t think that Europe would throw up trade barriers against

Britain. The UK is Germany’s third most important export target. The last thing Germany

wants is a trade war with Britain.

8. The European Union didn’t create the existing financial relationships

-Britain’s financial role goes back almost two centuries. The EU is a system that aligns

with financial reality. It does not create it.

-Mistrust and fear of losing control made Brexit a reasonable solution to them.

10. Political Elitism

-The political leadership of Britain faced a profound loss. The “leave” voters rejected both

the Conservative and Labour parties. Both parties had endorsed remaining with the EU

and saw many of their members go into opposition on the issue. Ultimately, it was a

three-way struggle. Two established parties wanted to remain in the EU, and a third

faction, drawn from both parties, opposed it. People in this third group saw both of the

establishment parties as hostile to their interests.

11. British act

-A more recent distinctive British act which also had a significant part to play in the

referendum result, was the 2003 decision of the Blair government to permit full freedom

of movement rights to all the 2004 accession states. As a consequence, on 1 January

2004, full free movement was extended by the United Kingdom (as well as Ireland) to all

the 10 accession states, from Central and Eastern Europe, the Baltic States, Cyprus and

Malta. All the other Western European Member States except Sweden maintained their

Treaty rights to suspend full free movement of workers for seven years. As the UK,

Ireland and Sweden were the only three states which provided full free movement the

number of people seeking work in the UK from the CEE and Baltic states surged.

Clearly, it was a British decision not to exercise their Treaty rights to restrict free
movement. Nevertheless, in the EU Referendum campaign it was not difficult for the

Leave campaigners to pin the surge of workers into the UK, on the EU, and not the

British government.

12. Eurozone failed to deliver growth

-the Eurozone failed to deliver growth across its 19 members and the economy of debtor

nations contracted sharply, more people arrived from southern Europe and Ireland. The

British economy rapidly righted itself after the crisis, as the UK was in control of its own

currency, and debt and could deploy effective fiscal stabilisers. However, London then

found that because of the Eurozone’s addiction to fiscally rigid economic policies, the UK

was also acting as the employment shock absorber for Frankfurt.

13. Failure of the Eurozone

-failure of the Eurozone to either reform itself so it has the same capability as any

other sovereign issuer of currency to pool debt, and provide the transfers and fiscal

stabilisers to run a single currency zone. Or organise a soft Euro exit strategy for the

states with whom Germany principally is not prepared to pool debts and fiscal transfer

policies. The ‘kicking the can’ down the road with sovereign and bank debt, combined

with endless fiscal contraction policies imposed by Frankfurt and Brussels have

enormously undermined support for the Union, and not just in the UK.
14. The China factor

-A further factor is the unwillingness of the political elites and the Brussels institutions to

recognise the downside of globalisation and particularly their elites to act on China’s

trade piracy. In 2001, China joined the World Trade Organisation (WTO). Beijing was

supposed to commit to opening up its markets, ensuring fair and non-discriminatory

market access, establishing a robust rule of law system and an open and commercial

banking system. It did none of this. The Chinese market is in fact more difficult to access

today than a decade [Link] sense of abandonment also played a part in the

willingness of working class communities across the UK to come out and vote to leave

the EU as it explains their decision to throw their lot in with the FN in France.

15. Paying too much

-Britain was paying too much to the E.U. in membership fees

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