What is Brexit?
Brexit is the new word generated from the ‘British exit’. Brexit defines the whole story behind the UK’s exit from the European Union. A public vote which is also known as the referendum was held in June 2016, where 17.4 million people demanded the Brexit.
The result was 52% in favour of leaving the European Union, while 48% voted for staying in the EU.
What Happened Next?
The UK finally left the European Union, dated January 31st, 2020, whereas the transition period will last until December 31st, 2020. During this transition period, EU negotiators and the UK attempt to roll over the trade deals existing between the EU and other countries, namely Canada, to start up a trade deal of their own.
After all this process, we can analyze the pros and cons of Brexit, which holds theoretical information mostly. Have a look at both sides of the story!
Pros of Brexit
- Helped in immediate cost savings
- Brexit opened the doors for new jobs
- Minimized the issue for immigration concerned with the European Union
- Improvement in border security
- Shifting the prominence of the trade from Britain
1. Help in Immediate Cost Saving
One of the main reasons that Brexit passed during the voting involved the cost of membership for the European Union. £13.1 billion was paid by Britain to the multinational structure in the year 2016, while it received £4.5 billion through spending.
So overall, this nation faced a loss of £8.6 billion in one year only. If we multiply this figure for a decade, then the savings would create a handful amount that became useful in many ways.
2. Brexit Opened the Doors for a New Job
According to a rough estimate, 3 billion jobs in Britain are connected with trade policies and procedures and their activities. Separating from the European Union, created a risk that employment opportunities may suffer and could be lost.
The increase in trade after separating showed some green flags regarding employment growth. When we see the expected drop in immigration rates, the UK no longer obeys the EU mandates; there will be a chance for people to find jobs in months or years.
3. Minimized the Issue for Immigration Concerned with the European Union
According to the laws of the European Union, the member of the nation is not allowed to prevent anyone from another state who is also living there. Britons had the facility or right to move anywhere they want to work and live.
After this structure, about 800,000 people moved toward the UK to take full advantage of opportunities. After separating from Europe, it was allowed to maintain immigration that would be best for the nation
4. Improvement in Border Security
The former pensions and work secretary, Iain Duncan Smith suggested that the terrorism experienced in Europe could be a red alarm for Britain because of the free movements that the EU allowed. The expert told that country may close borders to check the visitors and control the movement of people.
5. Shifting the Prominence of the Trade from Britain
EU-28 is considered as export and import block at the global stage. When the UK separated from the European Union, it allowed them to start its trade partnership instead of being dependent on the international regulatory body to take a step for them.
The UK was no longer supposed to be benefited from the trades by the European Union and was not allowed to be the contributing voice in the process.
Cons of Brexit
- Elimination of maternity leave, equal pay and workplace safety
- Brexit created a shortage of labour
- Brexit seemed to reserve the protection of food, health and animal’s right
- Created high-skill jobs that might remain unfilled
- Household energy bills rose
- Brexit forced Britain to obey EU laws and regulations
1. Elimination of Maternity Leave, Equal Pay and Workplace Safety
As there were many advantages of Brexit, there came out many disadvantages as well. Equality for women by Britain seemed very low, and they were reluctant to provide equal benefits to women and minorities. If the divorce happens, then there will be no rights against discrimination as before.
2. Brexit Created a Shortage of Labour
The decrease in immigration rates created job opportunities for people who stayed in the country. Brexit tried to create a labour shortage, as well. This may hold back the potential for the economy to grow in the country.
The drop in population was also the reason for the shortage of labour because there will be less demand for goods and services that were sold domestically. This shortage of skills in-country is undoubtedly a sign of red flags for economic growth.
3. Brexit Seemed to Reserve the Protection of Food, Health and Animal’s Right
Many food standards are followed in Britain were originated from the European Union. Britons were quite comfortable that some of the harmful addictive that were using all around the world, were not operating in Briton.
EU also banned animal testing for the whole membership bloc in 2012. This step created anxiety for animal welfare standards that may shift once Brexit moves forward to start its journey.
4. Created High-skill Jobs That Might Remain Unfilled
When we roll our eyes over the educational data of Britain and the remaining members of the European Union, EU workers are more educated. 32% of the European Union (EU-27) had a university degree, as compared to the 21% people of the UK.
People who were moving from Europe to Britain contributed 32% more financial assistance than they required in cost support.
5. Household Energy Bills Rose
When the Brexit was finalized, the average household would have saved £1,000 from unnecessary regulations. Some amount of it would have been losing by paying for higher cooling and heating price.
According to the rough estimate, this spending may increase to £500 million because the UK would not be capable of negotiating on price the same as before. There would be air pollution with its impact on the environment. This cost would be a good option for investors to look for more chances with their money instead of staying in Britain.