Brexit happened in 31st January 2020. United Kingdom separated from United Nation. United Kingdom is formed up of four countries, England, Wales, Scotland, and Northern Island. These four countries unitedly form United Kingdom which itself is a country. But yes, in some aspects, UK is considered as one nation and in some aspects, its considered as a combination of four nations. For example, in Cricket you would have seen England and Scotland as different countries whereas in Olympics United Kingdom is represented as a single nation. Looking into politics, government is one, the Parliament is one, but all the four countries have their own flags. In fact, the official website of UK says that UK is a country within countries.
Ireland lies very next to United Kingdom. Ireland itself is an independent country and is not a part of UK. But until 1992, it was a part of United Kingdom. Whenever we talk of Great Britain, it includes England, Scotland, and Wales. In Wikipedia it is written United Kingdom of Great Britain and Northern Ireland whereas before 1992, it was written United Kingdom of Great Britain and Ireland. This means that today the entire Ireland and Northern Ireland are two separate parts of the country Ireland.
One more interesting thing is in the year 2014, it was asked to the people of Scotland if they want to be a part of the UK. Or they want Scotland also to be entirely independent as like Ireland. Then 55% people voted to be a part of United Kingdom. This was asked in accordance to the introduction of Brexit referendum.
Story of European Union
Germany, France, Portugal, Spain along with 28 other European countries collectively formed a union named as European Union. That is why whenever Visa issued by Europe, it called European visa which covers 28 countries. You do not have any restrictions to travel these 28 countries. You can freely move from France to Germany and then to Spain. There are no borders. One currency is used in all these countries called Euro. EU itself again considered as a country. Even though all these 28 countries have their own national parliament, EU has its own parliament. Citizens of all these 28 countries vote and elect the Member of Parliament (MP) for EU. Some people think that EU has been given more powers due to which it sets the rules and regulations which up to some extent is not acceptable by certain citizens.
Why was European Union formed?
European Union was formed after world war 2. This formation was solely formed in agreement with promoting peace among European countries. Both in the world war 1 and world war 2, there were harsh hatred among European countries. Germany and France were like India and Pakistan of today. After the world war 2, and Hitler being out of picture, the people of these countries felt that promotion of peace is much needed amongst these countries. In 1950’s the trade Union was formed by some handful number of countries and with time many other countries started joining the Union. In the year 1999, the decided to have one currency called Euro. With this they not only became united but emerged as a power in the world map.
European Union gives freedom to all the countries in all aspects. From business set up to travel tourism and many more. Even the usage of currencies is also not forced on any country. That is the reason why Denmark, Poland and Hungary do not use Euro as their currency. But some rules set by EU was not acceptable by some citizens like 2015 refugee crisis.
Why Brexit?
The European Union stated that every country must take a fixed number of refugees within their country in proportion of their population. This upsets many people. Many people felt that they should come out of European Union and should have their country as an independent country.
In Britain, the right-wing party which is a very conservative party in the Britain been seen taking advantage of this and suggested people that they want to come out of the European Union. With many ups and downs within the right-wing party as well, in the year 2016 a referendum was passed in favor of Brexit in which 52% of the people voted in favor of leaving EU.
There were many ups and downs in terms of deal with the EU from 2016 to 2020. And finally, in 31st January 2020, Brexit was formed. But here also the exact trade agreements with the EU have not been negotiated.
Effects of Brexit
1 – Import Duty – 1/3rd of products in UK are being imported from EU which will levy a export duty which eventually will have the inflation to go high.
2 – Businesses Setup – Many businesses in the UK would have to spend more to setup their businesses in other EU countries. All these spends would include taxes, land acquisition and many more.
3 – Jobs – Many people in the UK who were free to move anywhere in the EU will have to face the country exit protocols and work permit which is a burden for them.
A report says that UK faced a loss of 2.5% in the GDP with the introduction of Brexit. Unemployment rose to 1.5%, and some -6% investments were seen. The per capita income reduced by 1.5%.
Scotland Case
Even though Scotland has been a part of UK, the people there want to come out of UK and wanted to be a part of EU. But that would eventually have a very bad impact on UK in terms of the economy.
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