The future of economic politics and existing Treaties are a great unknown while new relation between United Kingdom and Europe are delimited.
24 june 2016
United Kingdom voted ‘yes’ and leaving European Union. The euroscepticism has won the first European battle with the confirmation of ‘Brexit’ on the part of British citizens.
A 52% of the votes in favour of leaving Europe opens the way for negotiating this farewell, that could continue for two years. The procedure must be carried out through negotiations in order to determine the terms of the relations if this chapter finally closes with a definitive goodbye to United Kingdom.
Being part of the European Union involves many aspects beyond commitment and european feeling that was promoted 40 years ago with enthusiasm. European institutions and all its representatives articulate mesures and policies and then apply them at a community and national levels.
Economic policies established by EU and that affects United Kingdom are left in a limbo after the decision of leaving European Union
The most important policies have been the ones of free movement of people and single market. The numerous treaties that have allowed this kind of relation between member of European Community are now left in a limbo for British people. They are still current, but their future is uncertain. These are some of the consequences of the Brexit.
European Single Market
One of the main ‘Brexit’ questions is how British economy will be affected after leaving European Union. During the next two years, British and European representatives will have to reach an agreement in order to delimitate the basis and regulations of the new game board. They will try to decide wether United Kingdom and Europe maintain the european single market’s agreement or will look for alternatives such as free trade agreement in the Community territory.
European Policies
European Central Bank (ECB) has already committed itself to open swap lines from 24th day. Short-term, this policy will “reduce tensions between agents exchanging currencies and finance flows” and to keep liquidity in markets, according to el Economista.es journal. Apart from that, ECB’s framework for action is limited since, as Reuters points out, it would be difficult to extend its Quatitative Easing programme.
Moreover, ECB, under its Bank Supervision responsabilities, has asked for a more exhaustive report to those banks linked to United Kingdom (to pounds in particular but also bonds and other titles).
Foreign Residents
Uncertainty has overtaken foreign residents that are living in the island. United Kingdom is the second country in the European Union that more community immigrants has received in recent years after Germany. Currently, there are over three millions of european citizens living in the country. With regard to Spanish citizens, at the end of last year the figure reached over 100.000.
Entre les mesures que dificultarien la residència a Regne Unit es troba l'eliminació de les ajudes socials conegudes com tax credits que reben els immigrants amb els salaris més baixos. Fins a 84.000 famílies aproximadament es veurien afectades.
Among the measures that would make more difficult to live in United Kingdom we find the omission of social assitances sich as tax credits that immigrants with lower salaries received. Over 84.000 families will be affected.
