BREXIT IMPACT ! Current Affairs

BREXIT-The United Kingdom’s withdrawal from the European Union is widely known as Brexit

BEXIT

Brexit can be termed as the emergence of Rightist mindset in the western hemisphere, which has included the aspect of anti-globalisation and protectionist policies in its ambit. The impact of the decision can be described as follows:

On Britain:
1. Comparative decline of investments as London was considered as entry point of EU for non-EU countries, due to presence of English
2. Will have to chart new trade agreements with other countries, which will be sceptical of the protectionist mindset in the nation
3. Have to face the declined value of pound sterling in world market
4. Will save the budget, which was earlier sent to EU. This budget can be used for development of infrastructure
5. Can better regulate the inflow of migrants and help in increasing standard of living of British citizens, due to lesser outside pressure on economy

6.Great Britain may further split as London, Scotland, England 

On EU
1. Britain can be the starting point of future departures of other nations, leading to question mark on existence of EU in the future
2. Brussels being seen as the alternative to London, will need adequate infrastructure and policy framework to handle the investment inflow
3. Post Brexit, EU will have to deal with the uncertainity in value of euro as a currency
So, it can be said that the impact on UK will be bigger and negative, as compared to EU, where a comparatively smaller impact can be observed.

The major challenges to be faced by Britain before exiting EU, will be:
1. Exiting the single market of EU, in a phased manner and the consequent levy of charges of trade to be faced later
2. Britain is represented by EU at several of world forums. Britain will have to chart separate aims and appoint new representatives for the respective forums.
3. Britain will have to make its own market more attractive than EU, to keep the flow of investment intact. This will mean lower taxes, which can impact the economy
4. The promises of better economy and lesser outside pressure for the citizens, will have to be fulfilled by the govt to maintain people’s faith

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