Over two years ago, the people of Great Britain voted in a referendum to leave the European Union, a landmark decision popularly known as Brexit. And by now, Britain has slipped into such a huge mess, that no matter however many meetings and deals, it’s going to be really hard to overturn the repurcussions of Brexit. Here’s a brief on the 4 major issue Britain will face.
1. Immigration will be drastically reduced in Britain
Theresa May has stated that reducing immigration was one of the main reasons for leaving the European Union. Thus, after the exit, strict immigration laws were expected to be placed. Britain believes that reducing immigration will, in turn, improve the unemployment stats. But there’s a catch. Any reductions in EU workers could lead to an increase in wages for domestic workers, costs UK companies are not ready to incur.
2. Brexit will have a great impact on the business
Big business, with a few exceptions, were in favour of Britain staying in the EU because it made it easier for them to move money, people, and products around the continent. Given the crucial role of London as a financial centre, there were fears of how many jobs would be lost to other countries in the EU.
Speaking of trade, half of UK’s food is imported, with 30% from the EU and 11% from countries with EU trade deals. There are speculations that by March 2019 (exactly two years after the trigger) import tariffs will rise to 22%, making food and other necessities very costly.
Moreover, goods imported from EU are now being subjected to the same border checks as those from other countries. This friction is causing distrust among freight and transport companies. Delays in customs and transportation of goods to local markets have lead to a big gap between demand and supply, another cause for inflation.
Today, over a year after the ‘trigger’, UK’s parliament is concerned with the falling economy. In fact, the House of Lords deferred a specific exit date after the trigger due to concerns about rising bills. In the Parliament, majority votes are cast to protect trade policies and deals with the EU.
3. Britain will have to pay a huge sum in alimony
4. The possibility of EU collapsing