Brexit: The Aftermath

The European Union is a political and economic union of 28 member European countries. On June 23, 2016, Britain voted in favor of leaving the European Union. This historic event is referred to as the British exit (Brexit). It is one of the most significant developments in recent British politics.

The finalization of the British exit has caused political and economic changes in the UK and the European Union member states. For instance, the Brexit resulted in an increase in EU budget contributions from the contributors.

People who opposed the Brexit were mainly concerned about the economic implications of the referendum. There were many forecasts released on the negative impacts of the Brexit. However, Chancellor of the Exchequer George Osborne assured the public that the British economy would not be in serious trouble. According to him, Britain has a strong economic future. He and his successor, Philip Hammond, both assured the public that there would be no need for an emergency budget.

A few months after the referendum, reports of positive economic data were released amid the forecasts. However, experts reported that the Brexit’s effects on the UK economy are already showing impacts on inflation in late 2016 and in the first months of 2017 where prices have been rising faster than wages have.

Among the qualms of British citizens is the Brexit’s effects on their employment in other countries. After the referendum, fearing that British citizens might lose their jobs, thousands of people living in other European Union member countries have applied for citizenship in the country where they live.

Forecasts have also included the impacts of the Brexit on Germany, the country with the largest economy in Europe. Germany and Britain have had close ties with each other for 40 years. However, German Economy Minister Brigitte Zypries has predicted that the Brexit will have more negative impacts on Britain than it would on Germany.

The Brexit continues to spark debates on whether other countries should also leave the EU. However, most people say that other member states may encounter bigger challenges than Britain does. Despite the many developments and changes following the Brexit, the impacts of the Brexit on Britain, EU member states, and the world have not yet ripened. It may still take years to see the Brexit’s benefits on Britain’s economy.