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Q. Brexit-Britain leaves the EU: Discuss the major implication of Britain’s decision to quit European Union?
Jun 24, 2016 Related to : GS Paper - 2 & 3

Ans :

Introduction-

The results of referendum to decide whether Britain should leave or remain in the European Union (EU) have been declared. Majority of British people have vote for leaving the European Union. The result of this referendum is not binding on either the British government or on its Parliament. But if Britain leaves European Union has huge implication not only on Britain and EU but also throughout the world.

Implication of Brexit- 

  • Britain will probably spend another year or more trying to negotiate the exit, and the resultant uncertainty is likely to damage growth, dent the pound sterling, and slow down investment decisions in Britain.
  • It also affects Indian companies like The Tata due to higher tariffs imposed by the EU against British imports. 
  • It will encourage other countries to leave EU, which is now seen as a supra-state that is simply too big to manage on the basis of a consensus. Southern Europe countries, which are hurting from German-imposed austerity, may also begin to re-examine their premises. 
  • Immigration is going to become an issue everywhere in Europe. The EU’s own rules that allow any citizen in a member country to work anywhere may have to be tweaked.
  • UK’s exit will hurt both EU and UK as both will lose easy access to each other’s markets. In the absence of large markets, it also hurts businesses from other countries such as India.

Conclusion-

Britain exit from EU proves that the forces of nationalism and sub-nationalism do not die out by creation of free trading unions and common markets. Britain decision to leave EU has huge implications throughout the world. With this world again moving towards bilateral relation instead of union or common market.


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