EU Referendum


The UK won’t leave the European Union

The benefits outweigh the disadvantages. There are also good reasons to leave the EU and I can honestly say it’s a double edged sword and this is why it’s very unpredictable what the outcome would be. The EU has always pursued economic integration as a means to prosper and create a great strong force for its members. The economic benefits of remaining in the EU are great and it will be detrimental to the UK economy if they leave the EU. Whether in the long term or in the short term.

The effect of leaving the EU

Turbulence in the financial market: as soon as the EU decides to leave, the turbulence would kick in straight away. We can expect big financial companies to move their headquarters to other favourable regions. At the moment there is a halt in investments and job recruitment because of the referendum. It is difficult to operate in an unstable economy and so if Brexit happens, there would be a prolonged period of uncertainty, of course the situation would stabilize but a lot of damage would have been done. A typical example stems from the 2008 financial crisis; it was evident that a sharp downturn took the UK a long time to recover. The question is this: is it wise to put a strain in the UK economy just to have control over the borders and make laws that are suitable?

Trade with EU: a change in the terms of trade with the EU will be renegotiated, The UK is unsure on what will change. The question is could Britain win a better deal by leaving the EU? It is nearly impossible to imagine a deal that would match the status quo.

Increase in prices: several economic factors will cause prices to increase. If the UK vote to leave we can expect the pound to plummet which means that we would need more pounds to import goods into the country thereby increasing the prices of goods. Also, once the UK leaves, all goods coming into the UK from Europe will be subject to custom fees which will increase the prices of goods. Inflation is likely to kick-in in small doses as it will be noticeable first with food and clothes but it usually spreads out to other commodities.

Change in Immigration status: if the UK votes to leave, there will be no immediate change in the number of immigrants from other EU countries because the EU nationals already in the UK will be allowed to stay. Also, for the 2 years of Brexit negotiations, there will be free movement of EU workers. However, it is unknown whether or not that will change after the 2 years.

My Opinion: it’s simple, Let’s just stay in the EU.


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