The term “Brexit” is common among residents of the United Kingdom (UK) and the world since its emergence in 2016. In 2016, the UK voted on whether to remain part of the European Union (EU) or exit the union. As a result, the term “Brexit” became an abbreviation derived from combining Britain and its exit from the EU. Supporters of the idea believed that it would bring economic, social and political benefits to the country. On the other hand, it was argued that an exit from the EU would make the economy vulnerable; hence, threatening aspects such as employment, GDP (Gross Domestic Product), and the Gross National Income (GNI). It was also perceived that an exit from the EU would impact the country’s social and political development. After the vote, it was declared that an exit was inevitable, but it brought with it dire consequences. Regardless of Britain’s current situation, it is possible to find reasonable solutions to the problem as will be discussed.
According to Kottasova (2018), the decision by the UK to exit the EU has affected its economy for the last two years. The UK had built strong ties with other member states of the EU for decades, and an exit would change its trading arrangements. For instance, as a member of the EU, the UK enjoyed trade privileges such as reasonable tariffs that boosted trade. It was manageable for the UK to export and import goods under attractive conditions that allowed for economic growth. However, the decision to exit meant that it was no longer in the position to enjoy such privileges. Consequently, it received unfriendly trading conditions that have impacted its growth. Kottasova (2018) suggests that between 2016 and 2018, the UK lost $46 billion in output in the third quarter of 2016 through the first quarter of 2018. In this case, construction and manufacturing declined to result in a 0.1% in GDP growth (Kottasova, 2018). Kottasova (2018) reports economic growth in the UK has stalled and regardless of unemployment decreasing, the wages received by workers have been low.
Despite the attempts to improve the economy, the region struggles to recover from the effect of the Brexit decision. As a consequence, private investors displayed a reduced interest in investing and opted to leave the UK and settle in other regions. When investors pull out their businesses from the UK, the decision directly influences increased unemployment and a decline in GDP; hence, a declined experience for the UK residents. The current Prime Minister, Theresa May, has proposed a plan that would oversee Britain’s exit from the EU in 2019 (Hunt & Wheeler, 2018). However, the plan does not seem to have the support of voters as it is believed not to be in the best interest of the state. For example, it is thought that the plan will not provide the UK with the freedom to implement trade deals with the rest of the world, there will be the creation of a border between the UK and Northern Ireland, and the European Court of Justice will ultimately determine the laws of the UK (Global Britain, 2018).
Therefore, it is recommended that under such circumstances, the UK ought to have an alternative plan should the Prime Minister’s deal fails. It is evident that in the case the exit plan fails, the UK could opt to remain part of the EU. Therefore, remaining in the EU will guarantee the UK with benefits such as enjoying zero tariffs for imports and exports, benefiting from deals between the EU and other influential economies, reclaiming a stronger negotiating power, and investment will be strengthened. At this point, it seems the UK was better off as part of the EU than it is at the moment. There is uncertainty as to how the UK economy will be affected by the events that are unfolding; hence, putting the country at tremendous economic risk. It would be reasonable for the UK to consider remaining in the EU rather than choosing to exit.
The Brexit approach has received mixed reaction from the citizens, partly due to limited knowledge on the economic and social implications of the actions. Evidently, factors such as immigrants taking up employment opportunities in the region have influenced discussions on the economic future of the company. Evidently, periods of economic uncertainty discourage significant Foreign Domestic Investments patterns; however, an appropriate course of action has to be established to ensure that the United Kingdom establishes a strong economic foundation for sustainable business relations with partner countries.
Supposing the UK left the EU, it is recommended that it could take the Canadian approach to secure its economy. However, this approach has not been favored by the government. It is also recommended that the UK could remain part of the EU on the economic domain alone. In this case, the UK would only be part of the EU regarding trade and other economic activities (Eardley, 2018). Here, it will maintain and practice its laws without the interference of the EU legal system. It is a solution to the current worries regarding the UK remaining as part of the EU, hence, placing the region at the risk of being confined by the EU laws.
Eardley (2018) believes that the Norway approach could save the UK. Norway implemented the idea of being part of the EU’s economic arena and has managed to sustain a healthy economy ever since. However, it does have to follow some of the EU laws and contribute to its budget, which is not something supported by the UK. The UK wants independence from the EU laws and budgets to allow it to maximize its business potential with the rest of the world. Nevertheless, given Britain’s current economic situation, it would be best if it settled on a compromise to secure the future of its economy.
While a partial involvement involving the UK and UE whereby, the UK is not confined to the European Union’s laws may appear as an ideal choice, there may be ripple effects to be considered. The long-term implications of the partial approach can be considered using evidence-based approaches to reduce the occurrence of negative outcomes and to ensure that the strategy is sustainable. Evidently, there is a need to develop simplified educational campaigns to ensure that citizens are aware of the actions that are on progress and potential outcomes. By encouraging citizen involvement in the Brexit proceedings, progress can be sustained even during administration transitions.
In conclusion, the idea of a Brexit was developed with the intention of securing the economy of the UK. It was believed that by exiting the EU, the UK would have the chance to save on contributions it makes to the EU, have the opportunity to set and determine its laws, as well as enjoy global trade opportunities. However, it has not been that easy for the country as its economy has experienced a difficult period since 2016. In this case, it would opt for a plan to remain in the EU, be partially involved with the EU, or exit completely and determine its future. Regardless, it would be more beneficial for its political, social and economic position if the UK settled on a partial membership.
- Eardley, N. (2018). Brexit: Amber Rudd says Plan B options plausible. BBC News. Retrieved from https://www.bbc.com/news/uk-politics-46490642
- Global Britain. (2018). The EU’s Brexit deal. Global Britain. Retrieved from https://globalbritain.co.uk/the-eu-brexit-deal/
- Hunt, A., & Wheeler, B. (2018). Brexit: All you need to know about the UK leaving the EU. BBC News. Retrieved from https://www.bbc.com/news/uk-politics-32810887
- Kottasova, I. (2018). Two years in, Brexit is hurting the UK. CNN Business. Retrieved from https://money.cnn.com/2018/06/22/news/economy/brexit-two-years-anniversary/index.html