What is Brexit
This is where Britain has exited the EU on the 23rd of June 2016 after a nationwide vote. The process will start when Article 50 is triggered, the article action gives the EU member the right to quit unilaterally and outlines the procedures to do so. The Article 50 would be triggered by Theresa May on the 29th of March 2017 and the process of leaving the EU should take at least 2 years where this would also mean that we are to leave the single market.
The impact Brexit has on the economy is that the GDP has increased by 0.7%, but the growth in the in the UK's service sector eased to a five-month low in February with services fell to 53.3, down from 54.5 in January.
The impact it has on the Pound is that it has dropped to a new low where this is making holidays more expensive to go on and record low interest rates has also caused this to happen. As the pound is weaker, this is very likely to attract more tourists, as it will essentially be cheaper for them to visit.
EU regulations are estimated to cost Britain a total of more than £120 billion per year. The Common Agricultural Policy alone reportedly costs £10 billion in direct costs and by inflating food prices. After Brexit occurs in 2019, the merits of each regulation will be assessed before a decision is made on whether to jettison it or not.
According to a study by the Eurosceptic think-tank Open Europe, ridding Britain of needless EU regulations will save the economy £13 billion a year.
The regulations that would be affected are:
- Human Rights
The human rights act would be replaced by a British Bill of Rights to protect us, the UK would introduce a migration system so that skilled workers and students can stay and farming would have a new scheme to protect them from bad weather, crop failures and drops in prices.
As a result of brexit , tariff could be imposed on certain UK goods and services. right now, being part of the UK assures free trade between the members countries, when the UK will be out, the EU could for example ask for a 5% tariff on car exports, making it more expensive, and, at the same time, the UK could also put a tariff on all imported cars, making cars more expensive to buy.
This graph shows how much the UK can be dependent on imports and exports from foreign countries with 7 out of the 10 countries are from the EU where we would have to do trade agreements to ensure that the tariff would be lower. This would affect large firms more than the smaller firms where they would be found across Europe and this can affect the price and can cause businesses to move away from the UK in order to save money.
Collective redundancies are decisions by employers to lay off a group of employees where it aims to improve protection for workers affected by decisions of this kind.
The employee rights is that they have time off if they are made redundant to have pay and are entitled to have reasonable time off to look for a new job or arrange training and not be unfairly selected for redundancy.
European Works Council
European Works Councils are bodies representing the European employees of a company. Through them, workers are informed and consulted by management on the progress of the business and any significant decision at European level that could affect their employment or working conditions. If this work council doesn't apply to the UK after Brexit, then the workers might be treaty unfairly.
Tony Blair’s Government introduced a number of rules designed to protect workers that were based on EU labour laws. Since 1998, full-time workers have been guaranteed 28 days paid holiday and have the right to refuse to work more than 48 hours a week.
In some areas of employment rights, the UK already has laws and regulations in place which won't be affected by Brexit since they are already there. This would cover equal pay, sex discrimination, disabilities and more.
Brexit Positives and Negatives
- More opportunities in more vibrant markets
- The EU is stagnant and debt-ridden
- Trade Deals with other Countries will be easier to win
- Deeper talent pool
- Fewer onerous regulations
- Membership fee won't exsist
- Cross-border administrative burden
- The pound being weaker affects all businesses with products being more expensive
- Cross-border costs
- Tariffs could be imposed on imports and exports
Article 50 Process
The Treaty of Lisbon signed in December 2007 is the European Union's most recent constitution with Article 50 makes provision for countries that want to leave.
There is two-year time limit can be extended with the unanimous consent of both the U.K. government and the European Council, which consists of the leader of each of the 27 member states remaining within the EU post-Brexit.
The deal will also be put forth for approval in each member state's respective national parliament, which could potentially slow down the process should certain lawmakers object to particular conditions. Any deal must be approved by a "qualified majority" of EU member states and the European Parliament retains the right to a veto.