United Kingdom: What has Brexit brought on so far?

Nigel Farage's political ambition still has a long road ahead

United Kingdom: What has Brexit brought on  so far? 

Leer en Español: Reino Unido: ¿qué ha traído el Brexit a la fecha?

Brexit has been the largest setback in the free market’s recent history. Nigel Farage was the populist that led the way for Brexit to turn into a reality which divided Britain, as well as the world; their version of “Make America Great Again” was “Take Back Control”, and for sure it has, at a great cost.

Perspectives for the British economy remain bleak as the financial and political backbone behind the referendum signal more than a rational and sustainable agreement, but rather a passional and ephemeral one.

Who voted for Brexit

75% of the population between 18-24 years old voted to remain in the European Union, as only 25% voted to leave. Population between 25-49 years old voted 56% against the referendum and 44% voted in favor. The general sentiment for people below 50 years of age was clearly against it.

Regarding education qualifications, the British residents with higher education favored remaining while those without higher education voted to leave. This trend is extended as residents with no formal qualifications favored Nigel Farage's proposal while qualified civilians voted to stay. The annual income of those who pushed for the referendum is lower than those who resisted it.

Brexit is doomed in the long run as the decision won't be representative for the larger stance of the society by the year 2040.

Read also: United Kingdom’s economy suffer after Brexit

Current effects of Brexit

Brexit has brought economic and legal difficulties; the 2-year process to break ties between the European Union and the nation involves 30 international parliaments who should negotiate terms for future trade. Still, a 10-year span for special trade terms among the unions is suggested according to the World Trade Organization.

The United Kingdom will have to pay 60 billion euros to successfully leave the European Union.

Private companies are feeling most of the consequences of Brexit. London’s former reign on finances has seen a shift as big banks are turning to other cities such as Frankfurt, Zurich, and Milan. Fears of updated taxes to enter Europe are pushing multinationals out of Britain, as also housing prices in the United Kingdom reached their four-year lowest point.

The perceived panic for investors is due to the cost of debt. International markets use the American Dollar and the European Euro to weigh debt as they are broadly used currencies. Deals have an expiration date with a clear rate.

Brexit means tariffs and political uncertainty, this implies that trading within Europe or with the United States is a better solution. The day that Brexit became a reality,  the British Pound reached a low value and the situation has not varied substantially, as the Pound remains stable at a 10% lower price than the American Dollar.

Latin American Post | David Eduardo Rodriguez Acevedo

Copy edited by Susana Cicchetto

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