The various things that halted Brexit

Prime Minister Theresa May was compelled to leave. The Britain’s parliament is stagnated. Both the Conservative and Labor parties are highly divided and deeply in dissonance with each other.Nobody has recognized a definite path to an agreement that will prevent a result -an expensive and problematic no-deal Brexit. It is a decision which everybody claims they want to prevent. However, Britain has not exited the European Union and still people are speculating what will be the implications of it. This article will give you a list of things which have halted Brexit.

Following is the detailed list of things that halted Brexit

1. Lack of Plan by UK

George Bridges was the latest Brexit minister made from base in 2016 when Theresa May was the prime minister. At least, Bridges had an office to work in. The political consultants of Secretary of State David Davis had to share a cupboard, while the senior official of the unit had to alter his desk three times in one day. It had been a chaos. Bridges and the top officials of EU in Brussels were waiting for Britain to propose a plan to exit.

The reality is that when the UK decided to quit, there was no concrete plan for Brexit. When David Cameron announced and conducted the EU referendum, he had no Plan B. One senior official claims he forbade the civil servants to prepare the plan as he was afraid it might leak.Without a proper strategy or planfor Brexit, Theresa May went to the cabinet. Indeed, she hardly cited Brexit in her speech at Downing Street.

2. Lack of Plan by EU

President of France, François Hollande states he warned his associate EU representatives immediately after the referendum that the Britain would have to bear a high cost due to Brexit.The employees of Jean-Claude Juncker’s office were in tears, the chairman of the European Commission, when he and his representatives learned that the people of UK had chosen to quit EU.

There was no plan of action for the EU. And this had a negative effect on the EU. Due to this, French National Front chief Marine Le Pen had started campaigning for “Frexit.”

Everyone viewed EU of lacking potential to preserve the unity of the member countries. EU did not have a proper plan to handle Brexit and its consequences on EU. There was always going to be a conflict between defending the economic system and getting back control of measures such as immigration. It was a conflict that has never been fully addressed by EU.

3. No one backed May’s decision

Theresa May expected to enhance her stance and simply accomplish what individuals voted for in the referendum, but the outcome effectively rendered that work even more problematic.By the way, it was not only the closest consultants and ministers of May who assisted in persuading her to conduct an election for Brexit.Jean-Claude Juncker’s allies, confess that while he’ll never have encouraged her to conduct an election, he advised her that gaining her own mandate would assist her.Juncker suggested that a small majority in a House of Commons was not much passionate about Brexit than the British public. 

Theresa May ultimately required MPs to enact a Brexit agreement with the EU. However, she lacked such a support. Ultimately, the danger of no-deal Brexit is looming over the UK.

4. The threat of no-deal

The Prime Minister considered no deal to be a better than having a bad deal. The formal predictions have been evident. A no-deal Brexit would result in 10 percent tariffs on vehicle imports and 40 percent tariffs on lamb sales.One of the top leaders who handled Brexit informed ministers that demanding no deal agreement were quite threatening for the economy of the UK. The dissonance among the two major parties & May’s support for the no- deal Brexit has led to the delay. This is one of the major thing that halted Brexit.

5. Dissonance among MPs

The two major political parties have tried to outflank each other on Brexit. The opposing party is using Brexit as a manner to try to initiate a national general election.Simon Coveney is condescending about the inability of the UK Parliament and the democratic system to reach an agreement on Brexit. It’s a strong contrast to the cohesion that was shown in Dublin.He accuses the opposing Labor Party for this. EU rulers such as Frans Timmermans think that Political leaders do not comprehend the idealism and background underlying the European economy. He claims “mainland Europeans” don’t see the EU in the very same manner as the United Kingdom.

Brexit will have a negative impact on both the European Union and the UK. But delaying or halting Brexit will not reduce the negative impacts. And having a no-deal Brexit will be even more catastrophic for the economies in the Europe. I hope this article was helpful in elaborating things that halted Brexit.

Consequences People Have To Face With No-Deal Scenario

Many experts fear that Britain may leave the EU in a no-deal scenario. The recent Brexit news is that there is a delay in Brexit from 29 March to October. The President of the European Council, Donald Tusk said that the UK government would face ‘a choice between a deal, no-deal, a long extension or revoking Article 50’. The director of General Lobby group, Carolyn Fairbairn, told that Britain should not quit EU without an agreement.

What are Brexiteers saying about no-deal scenario?

According to BBC, most of the senior Leave supporters think that no deal would be perfectly acceptable. But it will be acceptable as long as sufficient preparations are there. Some of Backbench Brexiteers represent “Cliff Edge” Brexit as an opportunity rather than a threat.

CEO of Leave.EU argues that no-deal Brexit is a positive thing. Liz Bilney claims, “It is at worst, benign, at best, a fabulous opportunity for a fairer, more prosperous Britain.”

Former Brexit secretary, David Davis said that it is advantageous if the pound were to fall sharply in value following a no-deal exit. But, there are some of the critics of the no-deal scenario.

What are the effects if UK leaves the EU with no-deal scenario?

More expensive food

If UK leaves EU with no-deal then, of course, the contents of your shopping basket may change. Around 30% of the food will currently come from the EU. It is more likely that some foods, such as fresh vegetables and fruits, will become more expensive in the event of no deal. Here is the statistics showing the origins where the food comes from.

no-deal scenario

Transport delays and increased import taxes are reasons for the rising prices of food. Although supermarkets have already warned about the empty shelves and high rates if a fall in the value of the pound following a no-deal Brexit .

Extra measures while traveling to Europe

  • Visa: Millions of visitors from the UK travel abroad each year. The extensive majority of journeys made to Europe, and if you are heading towards it, then you should be careful of having the proper paperwork.  Paperwork means you don’t need a visa to stay in the countries in the Schengen area where passports are not required.  Moreover, all other types of border control had been abolished for 90-180 days.  However, the need for Visa is foremost if you wish to stay longer. 
  • Passport: If you are traveling in the Schengen Area, then the government is also advising you to confirm that your passport is valid for at least six months. However, for UK citizens the validity of passport has extended to nine months.  After, no-deal Brexit the time carried over will not count towards six months requirement. Moreover, for the countries not in the Schengen Area like Bulgaria, Croatia, Cyprus & Romania the entry requirements have been checked before traveling.
  • Bank Cards: The products may become more expensive for the citizens of the UK who want to pay with UK bank accounts in the area such as the EU, Iceland, Liechtenstein, and Norway.

Medication becomes more expensive

You should check if the medication is available or not. This is because it may become more expensive. Every effort has made to ensure that there will be enough medicines & other clinical equipment available to be imported from the EU. You can take measures like:

  • You can take stock for essential medicines for six weeks.
  • Renting of warehouse with more refrigeration capacity.
  • Ports other than Dover & Folkestone prepared to take ferries with Lorries taking imported medical supplies.

While there is a gap in medical supplies, the no-deal scenario makes the situation more worst. Most of the clinical products we use are from the European Union.  Extra warehouse space for medicines has been made in the no-deal preparations of no-deal Brexit. The government takes other measures, which include:

  • Securing roll-on & roll-off freight facility for medicines.
  • Building large stocks of medical equipment, including medicines.
  • Booking planes or ships where there is immediate need of requirement.
  • Powering processes to deal with shortages.
  • UK citizens living in abroad need to take extra measures.

The government of the United States has requested EU countries to reciprocate its promise to uphold the rights of EU citizens in the UK.  This means that UK citizens living in the European Union would be able to continue their lives broadly as now they are living. Moreover, in the event of no-deal, this request would ensure UK citizens to have access to continued employment in various sectors.

The Economic Effects Of Brexit

After the brexit leave vote, among the primary topics of debate about the UK membership at the European Union was the economic effects of Brexit. However, almost all economists have agreed that Brexit might minimize the actual per-capita income level in the UK.

Those supporting the UK to remain in the EU includes the UK treasury. Their reason for support is that being in the EU offers a powerful good effect on trade. In addition, there were those supporting withdrawal from the EU. Their claim was that the stopping of net contributions to the EU will give room for some cuts to taxes. Furthermore, it will help to raise the government spending.

Instant effect on the economy of UK

As indicated by one study, the referendum outcome had raised UK inflation by 1.7% in 2017. This lead to the average British household incurring a yearly cost of £404. In addition, studies that were published in 2018 approximated that the Brexit vote costed the economy 2% or 2.5% of GDP.

Moreover, an analysis by Financial Times in December 2017 showed that the outcomes of Brexit referendum had lowered the national British income by between 0.6% to 1.3%. Furthermore, a 2018 analysis by economists from Nottingham University and Stanford University indicated that the uncertainty surrounding Brexit lowered investments by businesses by around 6%. Moreover, this led to reduced employment by 1.5%.

Hence, a good number of studies shows that Brexit-caused uncertainty on the future trade policy of the UK lowered British international trade starting from June 2016. Still, the results of a 2019 analysis was that following the Brexit referendum, British firms greatly raised offshoring to the EU. In the meantime, European firms lowered startup investments in the UK.

Some short-term macroeconomic predictions by the Bank of England and others about instant effect after the Brexit referendum were all too negative. The assumption of the studies was that the outcomes of the referendum was a huge uncertainty in markets. And, reduced confidence from consumers which exceeded what happened.

Long-term effect on the economy of UK

Economists have overwhelmingly agreed that the British economy will be greatly affected in the medium and long-terms by the Brexit. Besides that, the 2016 survey of economists came to an agreement that Brexit might lower the actual per-capita income level of UK.

Also,the academic research surveys of 2017 and 2019 showed that the good estimates had a GDP loss range of between 1.2-4.5%, and an income per capita cost of between 1-10% of the UK.The difference in these estimates was based on if the UK opts a hard or soft Brexit. According to the leaked UK’s government Brexit analysis, the economic growth of UK would be stagnated by 2-8% for a minimum of 15 years as a result of Brexit. This is one of the most detrimental economic effects of Brexit.

As indicated by many economists, the EU membership has a powerful positive impact on trade. Because of this, the UK’s trade would get worse if they left EU.

Shifting of companies

As a result of Brexit, most companies shifted their business operations, offices, or assets from Britain to other European countries. Moreover, at the start of April in 2019, over US $1trillion had been transferred out of Britain by banks. Moreover, US $10 Billion was transferred out of Britain by insurance and asset management companies.

According to the independent research institute report in March this year, 269 companies in financial services sector had shifted sections of their enterprises or staff due to Brexit. From these relocations, 239 were affirmed to be as a result of Brexit. These companies were moved to Dublin, Luxembourg, Frankfurt, Paris, and Amsterdam.

The divorce bill

The result of Brexit would be greatly affected by the fiscal effects. Because of this, Theresa May had stated that the most important things around Brexit are money, laws, and borders. Therefore, the divorce bill is without doubt a financial settlement where the UK must pay their liabilities to the EU. However, there is no exact figure, it is estimated the pay could go up to 2022.

Financial institutions

On the following morning after the Brexit referendum, the share prices of the five big banks in Britain reduced at an average of 21%. Moreover, shares in most non-UK banks reduced by over 10%. However, Standard Chartered and HSBC had recovered completely by the end of that Friday’s trading. Whereas, Barclays, RBS Group, and Lloyds did not recover. Furthermore, the reaction of the big three credit rating agencies to the vote was negative.

This forced the Bank of England to release £150 billion in lending. Because to raise financial stability by lowering the counter cyclical buffers which banks hold. Fear of falling commercial property value made investors to start redeeming investments in property funds. This forced Standard life to suspend withdrawals on 4th July. Moreover, other investment companies which includes M&G Investments and Henderson Group reduced the amount that investors withdrawing their funds would withdraw. After this, some companies replaced exit penalties suspension of redemptions with exit penalties.

Summary

From all the above, it is evident that the economic effects of Brexit were negative. Businesses and financial institutions are the greatest contributors of any growing economy. Therefore, the Brexit-caused uncertainty had negative impact on them and scared off foreign investors. As a result, the economy of UK started to fall instead of growing.

The Brexit Guide- All You Need To Know About Brexit

The two major political parties of the Britain are debating over the Britain’s exit from the European Union. Even after the date of the exit is postponed, the people of the Britain remain divided over the fact that whether Brexit is beneficial for Britain or not. Theresa May, the Prime Minister, announced her decision to resign. She took this decision as she was unable to finalize a plan which convinced her party along with the coalition partners. The Parliament of the UK rejected the plan three times presented by Theresa May. Theresa May and the officials discussed and negotiated the three plans.

What is Brexit?

Bexit is the coinage of the words ‘Britain’ and ‘exit’. This word states the Britain leaving the membership of European Union. This exit will affect the relationship of trade, security and migration among European countries.

The people of Britain have been involved in the debates discussing the advantages & disadvantages of Britain’s membership with EU. Britain conducted its first referendum in the year 1975. And approximately 67 percent of the voters voted in favor of staying the member of what was then called the European Economic Community.

In the tear of 2013, the then Prime Minister David Cameron conducted a national referendum. This referendum decided the Britain’s membership with the European Union. He wanted the public’s opinion and wanted to settle the debates once and for all. However, Mr. Cameron was sure that people will vote in favor of Britain remaining a member of European Union.

But, the situation turned out to be different. On 23rd June, 2016, people voted in favor of Britain leaving the European Union. The major reason for this can be the political rage due to migration ofrefugees into the Britain. Approximately 52 percent of the voters voted for Brexit.

The breakdown of Votes

Majority of the voters in England and Wales voted in support of Brexit. Mostly people from rural areas and small towns supported the Brexit. This proportion of people overcame the majority support for membership with EU. People from London, Scotland and Northern Ireland supported Britain’s membership with the European Union.

It was observed that young people voted against the Brexit. Whereas, older people voted in support of it.

Why everyone is concerned regarding Brexit

The important export market for Britain is Europe. It is the biggest source of foreign investment for Britain. With the help of membership with European Union, Britain has secured the position of global financial center. With Brexit, many companies have decided to relocate their business out of the Britain. For example, the company Airbus has decided to relocate from Britain. Airbus employed approximately 14,000 people.

Many experts have predicted that the economy of the country will be affected. The effects can be even worse, depending upon the way Britain leaves the EU. Mrs. May stated that Brexit will end the free movement of good and people. It will also affect the immigration of people for work. This came as a victory for the people belonging to working class as they consider immigration as a threat to their jobs. But this was despairing for the young people, who wanted to study or work abroad.

What is delaying Brexit?

Leaving the decades long membership within one go is never easy, especially when the members involved are such huge economies of the world. The two major parties of the Britain are speculating what to do. They are divided in this situation and cannot decide a coherent plan which will be acceptable to all.

Theresa May spent more than a year to negotiate a divorce deal with the European Union. Her plan kept all the trade agreements intact, whereas cutting almost all of the ties. But when she presented her plan in the parliament, it got rejected. Similarly, the parliament rejected her three plans. Some people, who were staunch supporters of Brexit, supported Mrs. May’s plan. They thought of this plan as the only way to avoid a soft Brexit.

The final word

All the leaders of the Britain have the responsibility of the nation. They have to overcome all the obstacles. A staunch supporter of Brexit will be satisfied by a no-deal exit from the European Union. However, a less harsh decision can be that Britain still remains a member of the Customs Union of Europe. This membership will prevent the restrictions on trade. What finally happens can only be seen when Britain actually exits the European Union. Until then, people can only speculate the consequences of the Brexit. Whenever it will happen, it will be one of the greatest events in history.

The essential facts about Brexit

The facts about Brexit are doing round the corner in the world. One of the facts about Brexit is that having a turnaround of approximately 72 percent, 51.9 percent of British people voted in favor of the UK leaving the European Union. For instance, 48.1 percent people voted in favor of membership of Britain with the EU to be still intact. Therefore, this referendum set the ball rolling for the exit of Britain from EU. However, the details and date of the exit were yet to be decided. Initially, it was decided that the exit will happen on March 29th, 2019. However, later the date shifted to October 31st, 2019.

EU and UK finalized an outline agreement between them. The agreement outlined the amount the UK will pay on its departure from the union. People called it the exit bill or the divorce bill. Moreover, both the parties took a decision to not have a hard border with the Ireland. This led to the creation of a withdrawal agreement. And both the parties need to affirm it. The affirmation of this withdrawal agreement will lead to a transition period. In this transition period, all the other agreements will go into a standstill. This is because they want to give time for the trade related negotiations.

The Vital facts on Brexit

For a nation to leave the EU is atypical‑ and the degree of the complexities has gradually turned out to be apparent over the most recent few years.EU’s membership is a focal piece for the economy and society of every one of its members. And unscrambling this is perplexing, for both the sides.

Since the Brexit news, the discussions about UK & EU’s trading bloc are doing round the corner. There are two parts to it. First, the UK is the part of the EU customs union. This is an unhindered trade region which enables free trade and circulation of goods freely in the designated areas. All members of this union have agreed to impose same taxes for goods entering from the non-member countries of EU.

Moreover, the UK is a member of the EU single market, which also allows the free movement of goods & trade. Membership of Britain with EU single market along with EU customs union helped to move goods freely across the European Market and countries. In addition, the recent common regulations of EU support the trade in other sectors such as pharmaceuticals and food. Moreover, the UK additionally engages with normal international policies co-ordinated at EU level, remarkably in international strategy and defense and in trade deals with different nations.

The entire Synopsis

The talks of Brexit between UK and EU took place in a sequential manner. This sparked a lot of debates by all the experts. They have also debated on the expected political relationship between the UK and the EU. But, the results of the exit of Britain from the Union will be observed only when the actual exit of the UK takes place. 

In the short time period, the aim of withdrawal agreement would imply that once the UK leaves, a sort of halt or standstill would start and go on until the finish of 2020. The withdrawal agreement additionally recommends that this change period could be stretched up to 2022. If the progress time frame kicks in, very little will change on day of Brexit, with the exception of the UK’s formal exit. In any case, in the event that the withdrawal agreement isn’t concluded, at that point there is a danger of a no-deal scenario on October 31st, except if a further delay is concurred.

The no-deal scenario

If the withdrawal agreement is not finalized then the Britain will leave the EU in a ‘no-deal’ scenario on October 31st, 2019. This will result in a chaotic situation due to affects on trade. Therefore, the exit will result in imposing of strict regulations on trade. There will be uncertainties in various sectors like pharmaceuticals, aviation and food. This will have effects on the economy.

Some experts speculate on one of the facts about Brexit is that the UK and the EU will work closely and try to avoid any chaotic situation. Since, the things are going in a different direction, it is likely that the Britain will the EU in the ‘no-deal’ scenario. Therefore, observing such a situation, Dublin and Brussels have started their preparations to deal or manage with any of the problems associated with this ‘no-deal’ scenario.

However, if a withdrawal agreement is made, then the debates will move to in a different direction. The UK and EU will try to figure how the two parties will work in cohesion with each other in the future.

Well, whenever Britain exits the EU, it is sure that it will affect the economy of many European countries. The barriers to exports are the main threat which will arise due to Brexit. What will actually happen, this will only be known when Britain will actually leave the EU. Until then, we can gather and go through the facts about Brexit.

Effects on European Union due to Brexit

On 23rd June 2016, the decades old Union shattered as Britain decided to leave it and this will have effects on European Union. The people of United Kingdom voted, in a referendum, to leave the EU. The unexpected news of Brexit was out. After that, it became the most discussed topic among people. Brexit’s impact affected various industries and economies of many European countries. However, a significant effect was seen on the European Union (EU). Many experts across the world speculated about the effects of Brexit in various areas. However, fewer considerations were given to the effect of Brexit on the EU.

This article will explain & elaborate the effects on European Union due to Brexit.

The effects on European Union

Brexit will affect the European Union. Many experts are predicting these effects. Here, we bring you the most predictable effects on the European Union due to the break in the membership.

1. Effect on the budget of the EU

Being one of the most robust economies of the world, the UK ranks fifth in terms of the highest GDP. It is the second-largest contributor to the budget of the European Union. UK contributed approximately €19.4 billion to the EU, which is undoubtedly a considerable contribution. Therefore, with Britain’s exit from the EU, it is expected that Germany will have to contribute more to the budget. In other words, Germany is already the most significant contributor. Moreover, the European Union will have to cut down on its expenses and regional spending. This comes as a concern to the humble member countries of the Union, as they rely heavily on these funds.

2. Effect on Ideological balance

Britishers make a significant percent of the European Union’s population. Therefore, it is one of the influential members of the European Union. Moreover, the UK has a considerable influence on the Council of the European Union and the European Parliament. The exit of Britain will have an impact on the ideological balance within the European Union.

Britain’s exit strengthens the highest position of Germany, and it will become the most influential member of the Union. Moreover, the members of the Union may fear the dominance of Germany and may form an alliance against it.

Since Britain belonged to the liberalist group of members in the Union; its departure will weaken them. The protectionist group of members will more influence the Union’s decisions and ideas.

3. Effect on Defense and foreign affairs

The UK, along with France, has been a critical contributor in the defense and foreign affairs of the European Union. UK and France are the two noteworthy military powers of EU and has military intelligence abilities, and a robust diplomatic system. With the UK not being a member of the European Union, its foreign policy would be less influential and impactful.

Moreover, the US treated the UK as the connection point between the US and European countries. The UK helped align the EU with the US to give a harsh response to Russia.

4. Effect on Freedom of Movement

Ever since the foundation of the EU, its policies have encouraged the freedom of movement of workers across all the European countries. Moreover, there was a Schengen agreement. This agreement abolished the need of having passports to move between countries belonging to the Schengen area. With the exit of Britain, the freedom of movement of people will be affected in Britain. This will affect the employment of people. This is because Britain employed the majority of workers. In addition, many of the workers from other European countries, who are employed in Britain, will have to leave Britain. People will now prefer migrating to other economically active European countries. Therefore, this influx of people will be financially beneficial for Germany but may result in political problems.

5. Effect on Trade

Brexit will negatively affect the trade of Britain as well as European Union. In addition, automobile sector will be most hit by this change. This is because Britain was the largest manufacturer of automobiles and majorly depended on European Union for the supply of raw materials, especially from the Ruhr Valley. Moreover, electronic equipment and processed food sectors are the other sectors which will also be affected by the Britain’s exit from EU. Belgium, Cyprus, Ireland, Germany and the Netherlands will experience the changes in the economy.But Ireland will be most affected because of it shares the common land border with Britain. In addition, majority of its trade happened with UK. The introduction of this custom border due to the exit of Britain from EU will be economically and politically impairing for the countries, i.e., Ireland and Britain.

6. Relocation of Agencies located in UK

Before 2017, the European Medicines Agency and the European Banking Authority were located in the UK. But according to the policy that an EU agency should not be in a non-member country, the Council began to search new host cities. Later, it was decided to relocate the two agencies to Amsterdam and Paris.

Brexit came as a shock for the whole world. It will majorly impact the European Union as Britain was one of the powerful members of the EU. Moreover, the residents of Britain are still divided over the membership of Britain with EU. One group of people think that Brexit will liberate & boost the British economy. Whereas, the other group of people think that it will hamper the economy. Well, it does seem that the future of European Union is in great uncertainty.