TheUnited Kingdom Votes Brexit toppling Government, crashing markets
Thesummary is on the following article “The United Kingdom votes for`Brexit,` toppling government, crashing markets by Jane Onyanga-Omaraand Kim Hjelmgaard., June 24, 2016. USA TODAY”
Theforty-three years membership of Britain, in the European Union, wereended by a referendum vote that made PM David Cameron to announcethat he would step aside a decision that even the European Councilitself did not expect. He was in the “stay camp” that lost by amargin of 48% to 52% vote by the “leave” side hence, he vowed toleave office by October (Coy, 2016). The impact of the referendum wasimmediate as the world markets were shaken over the loomingdisintegration of a long-term union, which was born to ensure peaceand security in the Eurozone. The exit campaign was propagated by theimmigration crisis that hit Europe with immigrants from North Africaand Asia. Following this, the EU sets immigration laws for membercountries. Nigel Farage, a UK’s Independence Party, opposed themigration into Europe and triggered a move to leave the EuropeanUnion.
Uponthe poll result, the pounds went down plunging by 11%. Markets inAsia went erratic following the abrupt fall of the pound.Additionally, central banks around the world, including the Bank ofEngland, Reported that they were in close check of the situation andhad taken necessary steps in contingency preparation plans. Analystsview that the Scots, who overwhelmingly voted to stay in the EU, mayseek a new bid to leave the United Kingdom this was recentlyconfirmed by Scotland’s First Minister (Coy, 2016).
Inmy view, the Brexit campaign was politically motivated from the verybeginning. The United Kingdom’s politicians and civil societygroups had their own missions, which they wanted to achieve. As theU.K leaves EU, the economic impact may not cause much threat to itscitizens and other external economies. The impact may be short term,and when the negotiations are done and Britain is finally out, therewill be a way back to find economic stability.
Coy,P. (June 30, 2016). After Brexit, Here’s what’s next for Europe.Will the U.K and the EU be able to become friends with benefits?BloombergBusiness Week, 1-11.