Brexit Made Simple

.

 

 Audio Version Given Below

 

Recently Brexit has been in the news again. I also wanted to know more about the same, apart from the basic fact that Britain wants to exit from EU. Hence I read about the same on the internet. In this article, I would like to share my version of the simplified explanation of “Brexit”.

What is Brexit?

The plan of Britain to leave the current 28-member European Union (EU) is termed as Brexit, i.e. Britain’s Exit. This should be completed as per a deal between Britain and the EU. The date of completion, as announced by the British Government is 29^th March 2019 11 PM UK Time.

The word “Brexit” was coined by Peter Wilding, the director of the UK-based think-tank, The Influence Group (earlier, British Influence). It guides the businesses in the UK, on the single market, the UK market and the legal effects on both.

The European Union

The European Union is an economic and political association of 28 member countries. Most of these countries are located in Europe.

 The need of integrating the European countries was felt after World War II. Different shapes were given to this integration as countries came together. The UK joined the EU (called European Economic Commission back then) in 1973 with Denmark and Ireland.

The EU as we know today officially came into existence on 1^st November 1993 as per Maastricht Treaty. More members have joined the EU since its inception.

The EU members are benefited because of the ability to, have free movement of labour and free trade between the member countries. The common currency Euro helps in the same. Moreover, political co-operation between the member countries assures that there are no major economic and political conflicts.

Why the UK wants to leave the EU

The think tank, The Influence Group believed that the Britishers are the best. They have a losing proposition if they stay with the EU. Based on this thought, David Cameroon promised that if the Conservative Party comes to power in the 2015 General Elections, he will conduct a referendum in which everyone over the age of 18 was eligible to vote.

The Conservative Party won the 2015 elections and the referendum was conducted on 23^rd June 2016. The results say that 51.9% of votes were in favour of the option “Leave”, i.e. UK should leave the EU.

There was lot of opposition regarding leaving the EU. Even the, then PM, David Cameroon had to step down and Theresa May took his place.

Article 50

To start the process of leaving the EU, the British Government led by Theresa May, invoked Article 50 of the Lisbon Treaty. This Article describes the plan, a member country leaving the EU should follow. It gives both the sides i.e. the EU and the country that wishes to leave the EU (in this case, the UK) to finalise the terms of exit. The process was started on 29^th March 2017 and hence should be completed by 29^th March 2019.

Brexit Withdrawal Agreement

The agreement is officially known as “The draft Agreement on Withdrawal of the United Kingdom from the European Union”. This agreement was published on 14^th November 2018, as an outcome of Brexit negotiations going on since June 2017.

This agreement states the conditions during the ‘Transition Period’. Though this plan was agreed by the other 27 member countries, it was opposed in the British Parliament on 15^th January 2019 with 432 votes against and only 202 votes in favour of the Agreement. Even the "Brexit Plan B" presented by Theresa May on 21st January 2019 is said to be almost like the previous proposal. There are certain amendments in this proposal like second referendum, avoiding a No-Deal Brexit etc. This proposal will be put to vote in Parliament on January 29th 2019.

Transition Period

The Transition Period will be from 29^th March 2019 to 31^st December 2020. However, it can be extended with permission of all other EU members. This period will give the required time to the businesses to adjust to the new situation and also finalise a new deal of trade between the UK and the rest of the EU.

During this period:

a)  The UK will remain a member of the European Economic Commission, Customs Union and Single Market

b)  EU laws continue to apply in the UK

c)   UK will continue its contribution to the EU budget

d)  UK will not be represented in decision-making bodies of the EU.

Can Brexit be cancelled or extended?

Yes, as per a decision by the European Court of Justice, the UK can cancel Brexit. It can do the same on its own, without seeking permission of other countries.

However, to extend the date of Brexit, the UK would require permission of all other 27 member countries.

Though this condition of cancellation doesn’t seem possible as the date of 29^th March 2019 has been put in the law, by the British Government, hence to stop Brexit, change is required in the law itself.

Future Relations with EU

A ‘Statement of Future Relations’ is also being negotiated. This statement describes the conditions of relations in future, between the EU and the UK in areas of defence, security and trade.

Let's wait and watch till 29th March 2019, that how Brexit finally happens.

 

***

hope you all found this article informative and interesting. I will try to post interesting articles in an easy language in this blog. Please keep following and also do share your thoughts about the blog and suggestions for future posts. You can ask me questions in the comments section or mail them to me at: askme[at]aseemjavablogs[dot]com and I will try to answer them.

Want to read other articles? Click HERE