The Pros And Cons Of Leaving The European Union

1300 Words 5 Pages
Besides the monetary amount the United Kingdom will save from no longer paying out membership fees and immigration benefits, leaving the European Union would allow for the UK to set up favorable independent trade negotiations with other nations. As an independent state, Britain would gain influence over the rest of the world by gaining back their independent “seat” on international affairs discussions that the EU had taken away. According to the Conservative Party’s Chair of The Economic Affairs Committee John Redwood, in the forty-three years joined with the EU, Britain still remains without free trade agreements with their largest trading partners: America, India, and China. Great Britain imports more from these three nations then they export, …show more content…
The results have caused the value of the British pound to drop to its lowest relation to the dollar in thirty-one years. The lack of clarity whether England will in fact depart from the EU has caused corporations that created London’s real estate boom to pull out. The central bank responded by cutting the amount of cash reserves that banks are required to hold as a financial cushion against economic shocks. The decision will free up nearly $200 billion in potential lending to help counteract the real estate market decline. According to Mark Carney, Bank of England’s Governor, although helpful, these excess funds will not be enough to offset the market and economic volatility that will be expected if England departs from the European Union. One of the main instabilities that Brexit will generate is the depression of English exports. John Van Reenen, the Director of the Centre for Economic Performance at the London School of Economics stated that 48% of the United Kingdom’s exports go to the rest of Europe. If the decision were to be made that separates the UK from the EU, the country would suffer the loss of lower tariffs and favorable market access that EU membership provides. It is estimated that during the two years of this negotiated exit, UK incomes could decline between 1% and 3% due to the declining growth eliminating the favorable ties will create. With the negative results and …show more content…
The Prime Minister’s Conservative Party has historically been in favor for businesses, and it is this parties belief that the UK’s decision to leave will create economic blocks that are bad for business. The Prime Minister’s resignation has brought about speculation that David Cameron and his Conservative Party weren’t entirely in favor for Brexit, but instead during the election promised to hold the vote to persuade voters toward their party. Newly appointed Minister May was against Brexit before she got appointed to her new position. It is also important to note that the Brexit referendum was set up with no legality, which was unanimously agreed upon. The lack of this legal power was not marketed to voters and these terms only began to surface after the poll was conducted. This means that technically the government of the United Kingdom still bears the right for the final decision whether they will leave the

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