Brexit - Wikipedia, The Free Encyclopedia

Brexit - Wikipedia, the free encyclopedia
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https://en.wikipedia.org/wiki/Brexit
From Wikipedia, the free encyclopedia
Brexit is the forthcoming withdrawal of the United Kingdom (UK) from the European Union (EU). In the June 2016
referendum, 52% voted to leave the EU, leading into a complex separation process implying political and economic
changes for the UK and other countries. The timetable for withdrawal has not yet been firmly established.
Withdrawal from the European Union has been a right under Article 50 of the Treaty on European Union of EU member
states since 2007. The details of the process for the UK's withdrawal are uncertain under EU law Article 50, which now
governs the withdrawal, has never been used before.[a] Unless extensions are agreed, the timing for leaving under the
article is two years from when Britain gives official notice, but this official notice was not given immediately following the
referendum in June 2016. The assumption is that during the two-year window new agreements will be negotiated, but there
is no requirement that there be new agreements.[1]
Withdrawal has been the goal of various individuals, advocacy groups, and political parties since the UK joined the
European Economic Community (EEC), the predecessor of the EU, in 1973, though continued membership of the EEC
was approved in a 1975 referendum by 67% of voters.
Contents
1
2
3
4
5
Background
1975 referendum
Between referendums
The term "Brexit"
2016 referendum
5.1 Campaign groups
5.2 Voting result
5.3 Political effects
5.4 Petitions for a new referendum
6 "Article 50" and the procedure for leaving the EU
6.1 Possible need for parliamentary approval before invoking Article 50
6.2 Scottish Parliament objection
6.3 Delay in invoking Article 50
7 Consequences of withdrawal
7.1 Relationship with remaining EU members
7.2 Relationship between remaining EU members
7.3 Immigration
7.4 Economic effects
7.4.1 IMF forecast revisions and relative growth prospects
7.5 Possible change in status: Scotland, Northern Ireland, Gibraltar
7.6 Status of London
7.7 Border with France
7.8 Academic funding
8 See also
9 Notes
10 References
11 External links
Background
The UK was not a signatory to the Treaty of Rome which created the EEC in 1957. The country subsequently applied to
join the organisation in 1963 and again in 1967, but both applications were vetoed by the President of France, Charles de
Gaulle, ostensibly because "a number of aspects of Britain's economy, from working practices to agriculture" had "made
Britain incompatible with Europe" and that Britain harboured a "deep-seated hostility" to any pan-European project.[2][3]
Once de Gaulle had relinquished the French presidency, the UK made a third application for membership, which was
successful. Under the Conservative Prime Minister Edward Heath the European Communities Act 1972 was enacted. On 1
January 1973 the United Kingdom joined the EEC, or "Common Market".[4] The opposition Labour Party, led by Harold
Wilson, contested the October 1974 general election with a commitment to renegotiate Britain's terms of membership of
the EEC and then hold a referendum on whether to remain in the EEC on the new terms.
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1975 referendum
In 1975, the United Kingdom held a referendum on whether the UK should remain in the EEC. All of the major political
parties and mainstream press supported continuing membership of the EEC. However, there were significant splits within
the ruling Labour party, the membership of which had voted 2:1 in favour of withdrawal at a one-day party conference on
26 April 1975. Since the cabinet was split between strongly pro-European and strongly anti-European ministers, Harold
Wilson suspended the constitutional convention of Cabinet collective responsibility and allowed ministers to publicly
campaign on either side. Seven of the twenty-three members of the cabinet opposed EEC membership.[5]
On 5 June 1975, the electorate were asked to vote yes or no on the question: "Do you think the UK should stay in the
European Community (Common Market)?" Every administrative county in the UK had a majority of "Yes", except the
Shetland Islands and the Outer Hebrides. In line with the outcome of the vote, 67% in favour of staying in, the United
Kingdom remained a member of the EEC.[6]
United Kingdom European Community
(Common Market) Membership Referendum
1975
Choice
Yes
No
Valid votes
Votes
17,378,581
67.2
8,470,073
32.8
25,848,654
99.79
54,540
0.21
Invalid or blank votes

Total votes
25,903,194 100.00
Between referendums
The opposition Labour Party campaigned in the 1983 general election on a commitment to withdraw from the EEC.[7] It
was heavily defeated as the Conservative government of Margaret Thatcher was re-elected. The Labour Party
subsequently changed its policy.[7]
As a result of the Maastricht Treaty, the EEC became the European Union on 1 November 1993.[8] The new name
reflected the evolution of the organisation from an economic union into a political union.[9]
The Referendum Party was formed in 1994 by Sir James Goldsmith to contest the 1997 general election on a platform of
providing a referendum on the UK's membership of the EU.[10] It fielded candidates in 547 constituencies at that election
and won 810,860 votes, 2.6% of total votes cast.[11] It failed to win a single parliamentary seat as its vote was spread out,
losing its deposit (funded by Goldsmith) in 505 constituencies.[11]
The UK Independence Party (UKIP), a Eurosceptic political party, was also formed in 1993. It achieved third place in the
UK during the 2004 European elections, second place in the 2009 European elections and first place in the 2014 European
elections, with 27.5% of the total vote. This was the first time since the 1910 general election that any party other than the
Labour or Conservative parties had taken the largest share of the vote in a nationwide election.[12]
In 2014, UKIP won two by-elections, triggered when the sitting Conservative MPs defected to UKIP and then resigned.
These were their first elected MPs. At the 2015 general election UKIP took 12.6% of the total vote and held one of the two
seats won in 2014.[13]
The term "Brexit"

Brexit (and its early variant, Brixit),[14] is a portmanteau of "Britain" and "exit". It was derived by analogy from Grexit.[15] The
term Brexit may have first been used in reference to a possible UK withdrawal from the EU by Peter Wilding in a Euractiv
blog post on 15 May 2012.[16][17]
2016 referendum
In 2012, Prime Minister David Cameron rejected calls for a referendum on the UK's EU membership, but suggested the
possibility of a future referendum to gauge public support.[18][19] According to the BBC, "The prime minister acknowledged
the need to ensure the UK's position within the European Union had 'the full-hearted support of the British people' but they
needed to show 'tactical and strategic patience'."[20]
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Under pressure from many of his MPs and from the rise of UKIP, in January 2013, Cameron announced that a
Conservative government would hold an inout referendum on EU membership before the end of 2017, on a renegotiated
package, if elected in 2015.[21]
The Conservative Party unexpectedly won the 2015 general election with a majority. Soon afterwards the European Union
Referendum Act 2015 was introduced into Parliament to enable the referendum. Despite being in favour of remaining in a
reformed European Union himself,[22] Cameron announced that Conservative Ministers and MPs were free to campaign in
favour of remaining in the EU or leaving it, according to their conscience. This decision came after mounting pressure for a
free vote for ministers.[23] In an exception to the usual rule of cabinet collective responsibility, Cameron allowed cabinet
ministers to campaign publicly for EU withdrawal.[24]
In a speech to the House of Commons on 22 February 2016,[25] Cameron announced a referendum date of 23 June 2016
and set out the legal framework for withdrawal from the European Union in circumstances where there was a referendum
majority vote to leave, citing Article 50 of the Lisbon Treaty.[26] Cameron spoke of an intention to trigger the Article 50
process immediately following a leave vote and of the "two-year time period to negotiate the arrangements for exit."[27]
Campaign groups
The official campaign group for leaving the EU was Vote Leave.[28] Other major campaign groups included Leave.EU,[29]
Grassroots Out, and Better Off Out,[30] while non-EU affiliated organisations also campaigned for the United Kingdom's
withdrawal, such as the Commonwealth Freedom of Movement Organisation.[31]
The official campaign to stay in the EU, chaired by Stuart Rose, was known as Britain Stronger in Europe, or informally as
Remain. Other campaigns supporting remaining in the EU included Conservatives In,[32] Labour in for Britain,[33]
#INtogether (Liberal Democrats),[34] Greens for a Better Europe,[35] Scientists for EU,[36] Environmentalists For Europe,[37]
Universities for Europe[38] and Another Europe is Possible.[39]
Voting result
The result was announced on the morning of 24 June: 52% voted to leave and 48% to remain.[40][41]
United Kingdom European Union membership
referendum, 2016
Choice
Votes
Leave
17,410,742
51.89
Remain
16,141,241
48.11
Valid votes
33,551,983
99.92
25,359
0.08
Invalid or blank votes

Total votes
33,577,342 100.00
Registered voters and

turnout
46,500,001
72.21
Source: Electoral Commission[42]
Referendum results (without spoiled ballots)

Leave:
Remain:
17,410,742 (51.9%)
16,141,241 (48.1%)
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Results by region (left) and by local council district (right)

Leave
Remain
Political effects
The political scene in the UK went through substantial change and shock after the referendum. After the result was
declared, Cameron announced that he would resign by October.[43] In the event, he stood down on 13 July, with Theresa
May becoming Prime Minister. George Osborne was replaced as Chancellor of the Exchequer by Philip Hammond, Boris
Johnson was appointed Secretary of State for Foreign and Commonwealth Affairs, and David Davis became Secretary of
State for Exiting the European Union. Labour leader Jeremy Corbyn lost a vote of confidence among his parliamentary
party and a leadership challenge was launched, while on 4 July, Nigel Farage announced his resignation as head of
UKIP.[44]
Outside the UK many Eurosceptic leaders celebrated and expected others to follow the UK example. However, opinion
polls a week after the Brexit vote showed strongly increased support for the EU in most of Europe. The right-wing Dutch
populist Geert Wilders said that the Netherlands should follow Britain's example and hold a referendum on whether the
Netherlands should stay in the European Union.[45] However, opinion polls in the fortnight following the British referendum
show that the immediate reaction in the Netherlands and other European countries was a decline in support for
Eurosceptic movements.[46]
Petitions for a new referendum

Within hours of the result's announcement, a petition calling for a second referendum to be held in the event that a result
was secured with less than 60% of the vote and on a turnout of less than 75% attracted tens of thousands of signatures.
The petition had actually been started before the referendum by someone favouring an exit from the EU.[47] It attracted
more than four million signatures, meaning it was considered for debate in Parliament.[48][49]
On 27 June 2016, David Cameron's spokesperson stated that holding another vote on Britain's membership to the
European Union was "not remotely on the cards."[50] Home Secretary Theresa May made the following comment when
announcing her candidacy to replace Cameron as Conservative leader (and hence as Prime Minister) on 30 June: "The
campaign was fought ... and the public gave their verdict. There must be no attempts to remain inside the EU ... and no
second referendum. ... Brexit means Brexit."[51] The petition was rejected by the government on 9 July. Its response said
that the referendum vote "must be respected" and that the government "must now prepare for the process to exit the
EU".[52] The Commons Petitions Committee has scheduled a debate on the petition for 5 September 2016.[53]
"Article 50" and the procedure for leaving the EU

Article 50 of the Treaty on European Union provides an invocation procedure whereby a member can notify the European
Council and there is a two year negotiation period after which the treaties cease to apply - although a leaving agreement
may be agreed by Qualified majority voting.[54]
As was the case with the Scottish independence referendum two years earlier, the 2016 referendum did not directly require
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the government to do anything in particular. It does not require the government to initiate, or even schedule, the Article 50
procedure.[55] Although Cameron stated during the campaign that he would invoke Article 50 straight away in the event of
a leave victory,[56] he refused to allow the Civil Service to make any contingency plans, something the Foreign Affairs
Select Committee later described as "an act of gross negligence."[57] Following the referendum result Cameron announced
that he would resign before the Conservative party conference in October, and that it would be for the incoming Prime
Minister to invoke Article 50.[58]
A negotiation with the European Union will need to begin under a new Prime Minister, and I think it is right that
this new Prime Minister takes the decision about when to trigger Article 50 and start the formal and legal
process of leaving the EU.
David Cameron, "EU referendum outcome: PM statement, 24 June 2016". gov.uk. Retrieved 25 June
2016.
There is no established, formal process for holding a second referendum to "confirm" the decision to leave following
negotiations. Alan Renwick of the Constitution Unit of University College London argues that Article 50 negotiations cannot
be used to renegotiate the conditions of future membership and that Article 50 does not provide the legal basis of
withdrawing a decision to leave.[55] The UK government has stated that they would expect a leave vote to be followed by
withdrawal, not by a second vote.[59]
As long as the UK Government has not invoked Article 50, the UK stays a member of the EU; must continue to fulfil all
EU-related treaties, including possible future agreements; and should legally be treated as a member. The EU has no
framework to exclude the UKor any memberas long as Article 50 is not invoked, and the UK does not violate EU
laws.[60][61] However, if the UK were to breach EU law significantly, there are legal provisions to discharge the UK from the
EU via Article 7, the so-called "nuclear option", which allows the EU to cancel membership of a state that breaches
fundamental EU principles, a test that will be hard to pass.[62] Article 7 does not allow forced cancellation of membership,
only denial of rights such as free trade, free movement and voting rights.
Various EU leaders have said that they will not start any negotiation before the UK formally invokes Article 50. Jean-Claude
Juncker even ordered all members of the EU Commission not to engage in any kind of contact with UK parties regarding
Brexit.[63] Media statements of various kinds still occur. For example, on 29 June, European Council president Donald Tusk
told the UK that they would not be allowed access to the European Single Market unless they accept its four freedoms of
goods, capital, services, and people.[64] German Chancellor Angela Merkel said "We'll ensure that negotiations don't take
place according to the principle of cherry-picking ... It must and will make a noticeable difference whether a country wants
to be a member of the family of the European Union or not."[65]
Immediately afterwards, Cameron declared his belief that the next Prime Minister should activate Article 50 and begin
negotiations with the EU.[66] During a 27 June 2016 meeting, the Cabinet decided to establish a unit of civil servants,
headed by senior Conservative Oliver Letwin, who would proceed with "intensive work on the issues that will need to be
worked through in order to present options and advice to a new Prime Minister and a new Cabinet".[67]
After a debate about the planned UK exit on 28 June 2016, the EU Parliament passed a motion calling for the "immediate"
triggering of Article 50, although there is no mechanism allowing the EU to invoke the article.[68]
Newly appointed PM Theresa May made it clear that negotiations with the EU required a "UK-wide approach". Speaking in
Scotland on 15 July 2016, May offered the following comment. "I have already said that I won't be triggering article 50 until
I think that we have a UK approach and objectives for negotiations I think it is important that we establish that before we
trigger article 50."[69]
Possible need for parliamentary approval before invoking Article 50

Lawyers disagree on whether the prime minister can invoke Article 50 by royal prerogative, or whether there needs to be
an explicit Act of Parliament to invoke it.
Three distinct groups of lawyers one funded by crowd sourcing are suing the government or planning to sue it to make
sure Article 50 is not invoked without a parliamentary act.[70]
Scottish Parliament objection

The First Minister of Scotland, Nicola Sturgeon, stated that Scotland might refuse consent for legislation required to leave
the EU,[71] though some lawyers argue that Scotland cannot block Brexit.[72]
Two days after her appointment as PM, Theresa May travelled to Edinburgh to meet with Sturgeon, to reinforce the bond
between Scotland and the rest of the UK.[73] After the meeting at Bute House, May offered the following comment about
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Scotland's role in the negotiations about the UK's exit from the EU: "I'm willing to listen to options and I've been very clear
with the first minister today that I want the Scottish government to be fully engaged in our discussion."[74]
Delay in invoking Article 50

On 19 July 2016, at a preliminary High Court hearing of a challenge to the government's claim that it could issue the Article
50 notification without Parliamentary approval, lawyers for the government confirmed that the prime minister would not
issue any such notification before the end of 2016.[75]
Nicolas J. Firzli of the World Pensions Council (WPC) has argued that it could be in Britain's national interest to proceed
slowly in the coming months; Her Majesty's Government may want to push Brussels to accept the principles of a free trade
deal before invoking Article 50, hopefully gaining support from some other member states whose economy is strongly tied
to the UK, thus "allowing a more nimble union to focus on the free trade of goods and services without undue bureaucratic
burdens, modern antitrust law and stronger external borders, leaving the rest to member states".[76]
Prime Minister Theresa May made it clear that discussions with the EU would not start in 2016. "I want to work with ... the
European council in a constructive spirit to make this a sensible and orderly departure." she said. "All of us will need time to
prepare for these negotiations and the United Kingdom will not invoke article 50 until our objectives are clear." In a joint
press conference with May on 20 July, Germany's Chancellor Angela Merkel supported the UK's position in this respect:
"We all have an interest in this matter being carefully prepared, positions being clearly defined and delineated. I think it is
absolutely necessary to have a certain time to prepare for that."[77]
Consequences of withdrawal
Relationship with remaining EU members
As the UK electorate has voted to leave the EU, its
subsequent relationship with the remaining EU members
could take several forms. A research paper presented to the
UK Parliament proposed a number of alternatives to
membership which would continue to allow access to the EU
internal market. These include remaining in the European
Economic Area (EEA) as a European Free Trade Association
(EFTA) member (alongside Iceland, Liechtenstein, Norway
and Switzerland), or seeking to negotiate bilateral terms more
along the Swiss model with a series of interdependent
sectoral agreements.[78] Britain has not negotiated a trade
agreement since before 1973, and the government is looking
to the private sector for assistance.[79]
Were the UK to join the EEA as an EFTA member, it would
have to sign up to EU internal market legislation without being
Political system of the European Union
able to participate in its development or vote on its content.
However, the EU is required to conduct extensive
consultations with non-EU members beforehand via its many committees and cooperative bodies.[80][81] Some EU law
originates from various international bodies on which non-EU EEA countries have a seat.
The EEA Agreement (EU and EFTA members except Switzerland) does not cover Common Agriculture and Fisheries
Policies, Customs Union, Common Trade Policy, Common Foreign and Security Policy, direct and indirect taxation, and
Police and Judicial Co-operation in Criminal Matters, leaving EFTA members free to set their own policies in these
areas;[82] however, EFTA countries are required to contribute to the EU Budget in exchange for access to the internal
market.[83][84]
The EEA Agreement and the agreement with Switzerland cover free movement of goods, and free movement of people.
[85][86] Many supporters of Brexit want to restrict freedom of movement;[87] however, an EEA Agreement would include free
movement for EU and EEA citizens, as passport systems allow EEA institutions to access markets in EU Member States,
for the most part, without having to establish subsidiaries in each EU Member State and incur the costs of full authorisation
in those jurisdiction.[88] Others present ideas of a Swiss solution, that is tailor-made agreements between the UK and the
EU, but EU representatives have claimed they would not support such a solution. The Swiss agreements contain free
movement for EU citizens.[89] (The Swiss immigration referendum, February 2014 voted narrowly in favour of an end to the
'free movement' agreement, by February 2017. However, the bilateral treaties between Switzerland and the European
Union are all co-dependent, if one is terminated then all are terminated. Consequently, should Switzerland choose
unilaterally to cancel the 'free movement' agreement then all its agreements with the EU will lapse unless a compromise is
found as of July 2016, no such compromise was in sight).[90]
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Relationship between remaining EU members

A report by Tim Oliver of the German Institute for International and Security Affairs expanded analysis of what a British
withdrawal could mean for the EU: the report argues a UK withdrawal "has the potential to fundamentally change the EU
and European integration. On the one hand, a withdrawal could tip the EU towards protectionism, exacerbate existing
divisions, or unleash centrifugal forces leading to the EU's unravelling. Alternatively, the EU could free itself of its most
awkward member, making the EU easier to lead and more effective."[91]
Immigration
A Conservative MEP representing South East England, Daniel Hannan, predicted on BBC Newsnight that immigration from
the European Union would not end after Brexit:[92] "Frankly, if people watching think that they have voted and there is now
going to be zero immigration from the EU, they are going to be disappointed. ... you will look in vain for anything that the
Leave campaign said at any point that ever suggested there would ever be any kind of border closure or drawing up of the
drawbridge."[93]
The EU had offered David Cameron a so-called "emergency brake" which would have allowed the UK to withhold social
benefits to new immigrants for the first four years after they arrived; this brake could have been applied for a period of
seven years.[94] That offer was still on the table at the time of the Brexit referendum but expired when the vote determined
that the UK would leave the EU.
In late July 2016, discussions were underway that might provide the UK with an exemption from the EU rules on refugees'
freedom of movement for up to seven years. Senior UK government sources confirmed to The Observer that this was
"certainly one of the ideas now on the table".[95] If the discussions led to an agreement, the UK though not an EU
member would also retain access to the single market but would be required to pay a significant annual contribution to
the EU. According to The Daily Telegraph the news of this possibility caused a rift in the Conservative Party: "Tory MPs
have reacted with fury .... [accusing European leaders of] ... failing to accept the public's decision to sever ties with the
28-member bloc last month."[96]
Economic effects
Prior to the referendum, the UK treasury estimated that being in the EU has a strong positive effect on trade and as a result
the UK's trade would be worse off if it left the EU.[97] The International Monetary Fund (IMF) forecasts reduced world
economic growth by 0.1% following the referendum, and greater reductions in UK economic growth.[98]
Supporters of withdrawal from the EU have argued that the cessation of net contributions to the EU would allow for some
cuts to taxes and/or increases in government spending.[99] However, Britain would still be required to make contributions to
the EU budget if it opted to remain in the European Free Trade Area.[83] The Institute for Fiscal Studies notes that the
majority of forecasts of the impact of Brexit on the UK economy indicate that the government would be left with less money
to spend even if it no longer had to pay into the EU.[100]
On 15 June 2016, Vote Leave, the official Leave campaign, presented its roadmap to lay out what would happen if Britain
left the EU.[101] The blueprint suggested that Parliament would pass laws: Finance Bill to scrap VAT on tampons and
household energy bills; Asylum and Immigration Control Bill to end the automatic right of EU citizens to enter Britain;
National Health Service (Funding Target) Bill to get an extra 100 million pounds a week; European Union Law (Emergency
Provisions) Bill; Free Trade Bill to start to negotiate its own deals with non-EU countries; and European Communities Act
1972 (Repeal) Bill to end the European Court of Justice's jurisdiction over Britain and stop making contribution to the EU
budget.[101]
On 24 June 2016, the bond and credit rating agency of Moody's, on the basis of the result of the referendum, downgraded
the UK's standing as a long-term debt issuer and the country's debt rating outlook from "stable" to "negative," while
retaining the overall rating of Aa1.[102] Fitch Ratings degraded the credit rating from AA+ to AA because "uncertainty
following the referendum outcome will induce an abrupt slowdown in short-term GDP growth...".[103] Standard & Poor's cut
the UK's rating to AA, with the following comment: "In our opinion, this outcome is a seminal event, and will lead to a less
predictable, stable, and effective policy framework in the U.K. ... The negative outlook reflects the risk to economic
prospects, fiscal and external performance, and the role of sterling as a reserve currency." On the other hand, economic
analysts have pointed out that the UK, as a fiscally and monetarily sovereign nation, retains the ability to service or retire,
at any time, any part or all of the state debt that is denominated in the national currency, and, hence, there is no risk
whatsoever of defaulting on that part of its debt.[104]
On 27 June 2016, Chancellor of the Exchequer George Osborne attempted to reassure financial markets that the UK
economy was not in serious trouble. This came after media reports that a survey by the Institute of Directors suggested
that two-thirds of businesses believed that the outcome of the referendum would produce negative results as well as the
dropping value of the sterling and the FTSE 100, which began on 24 June 2016. British businesses had also predicted that
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investment cuts, hiring freezes and redundancies would be necessary to cope with the results of the referendum.[105]
Osborne indicated that Britain was facing the future "from a position of strength" and there was no current need for an
emergency Budget.[106] "No one should doubt our resolve to maintain the fiscal stability we have delivered for this country
.... And to companies, large and small, I would say this: the British economy is fundamentally strong, highly competitive
and we are open for business."[107]
On 15 July 2016, Reuters reported that the value of UK funds' assets under management has dropped by more than
$40 billion or 8.2 percent "in the three weeks since Britain's vote to leave the EU", primarily due to the devaluation of the
pound according to the EPFR (Emerging Portfolio Fund Research). While the stock market had rebounded, analysts at
Socit Gnrale bank in France were not bullish: "The conditions and consequences of Brexit remain unclear" and spoke
of a "strong negative bias on the UK domestic economy".[108] In its summary, one month after Brexit, the Guardian noted
that the initial effects had been less severe than predicted and there had been some sort of recovery but that initially $2tn
had been wiped off world stock markets.[109]
On 22 July 2016, a "flash" (provisional) estimate for July from the Markit Purchasing Managers' Index (a survey of business
activity) indicated the worst economic performance since the recession of 2009, with the important service sector being
badly affected.[110] The pound fell by one cent against the dollar on the news.[110]
On 29 July 2016, The Guardian reported consumer confidence and confidence of manufacturers had both fallen sharply
since the Brexit referendum.[111]
The City of Berlin, Germany, started to actively encourage UK-based start-ups to re-locate to Berlin by sending invitation
letters (https://scontent.ftxl1-1.fna.fbcdn.net/v/t1.0-9
/13902657_10153885599606139_3512372407236340008_n.jpg?oh=455dc8446c408fd9faf13cc770e65e15&
oe=5813934E).
IMF forecast revisions and relative growth prospects
In its revised growth forecasts published 19 July 2016, the IMF implicitly recognised it had been excessively pessimistic
regarding the economic consequences of Brexit: After saying that leaving the European Union could trigger a UK
recession, the International Monetary Fund now expects the British economy to grow by 1.7 per cent this year and 1.3 per
cent next year [] The UK is still set to be the second-fastest growing economy in the Group of Seven industrialised
nations this year behind the United States and third-fastest next year, behind the US and Canada"[112]
European experts from the World Pensions Council (WPC) and the University of Bath have argued that, beyond short-lived
market volatility, the long term economic prospects of Britain remain high, notably in terms of country attractiveness and
foreign direct investment: "Country risk experts we spoke to are confident the UK's economy will remain robust in the event
of an exit from the EU. 'The economic attractiveness of Britain will not go down and a trade war with London is in no one's
interest,' says M Nicolas Firzli, director-general of the World Pensions Council (WPC) and advisory board member for the
World Bank Global Infrastructure Facility [...] Bruce Morley, lecturer in economics at the University of Bath, goes further to
suggest that the long-term benefits to the UK of leaving the Union, such as less regulation and more control over Britain's
trade policy, could outweigh the short-term uncertainty observed in the [country risk] scores."[113]
On 4 August 2016, in response to signs of an historically fast economic slowdown in Britain, the Bank of England took
measures including cuts to interest rates and buying debt.[114] The bank also forecasts GDP growth to slow down
significantly in the near future, with GDP growth to be cummulatively 2.5% lower than its pre Brexit forecast [115]
On 10 August the Institute for Fiscal Studies published a report funded by the Economic and Social Research Council
which warned that Britain faced some very difficult choices as it couldn't retain the benefits of full EU membership whilst
restricting EU migration. The IFS claimed the cost of reduced economic growth would cost the UK around 70Bn more
than the 8Bn savings in membership fees. It did not expect new trade deals to make up the difference.[116]
Possible change in status: Scotland, Northern Ireland, Gibraltar

Before the referendum, leading figures with a range of opinions regarding Scottish independence suggested that in the
event the UK as a whole voted to leave the EU but Scotland as a whole voted to remain, a second Scottish independence
referendum might be precipitated.[117][118] Former Labour Scottish First Minister Henry McLeish asserted that he would
support Scottish independence under such circumstances.[119] In 2013, Scotland exported around three and a half times
more to the rest of the UK than to the rest of the EU.[120] The pro-union organisation Scotland in Union has suggested that
an independent Scotland within the EU would face trade barriers with a post-Brexit UK and face additional costs for
re-entry to the EU.[120]
With the outcome of the recent 'Brexit' referendum being a majority vote for Britain to leave the European Union, the
question of what happens to the border between Northern Ireland and the Republic of Ireland has been raised.[121] Enda
Kenny, the Taoiseach of Ireland, has warned that a UK exit from the European Union could damage the Northern Ireland
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peace process.[122] Northern Ireland Secretary Theresa Villiers denounced the suggestion as "scaremongering of the worst
possible kind".[123] It has been suggested by a member of Germany's parliamentary finance committee that a "bilateral
solution" between the UK and Ireland could be negotiated quickly after a leave vote.[124] On 24 June 2016, following the
UK's vote to leave the EU, Northern Ireland's Deputy First Minister Martin McGuinness called for a referendum on Irish
reunification.[125]
In 2015, Chief Minister of Gibraltar Fabian Picardo suggested that Gibraltar would attempt to remain part of the EU in the
event the UK voted to leave,[126] but reaffirmed that, regardless of the result, the territory would remain British.[127] In a
letter to the UK Foreign Affairs Select Committee, he requested that Gibraltar be considered in negotiations post-Brexit.[128]
Spain's foreign minister Jos Garca-Margallo said Spain would seek talks on Gibraltar the "very next day" after a British
exit from the EU.[129]
Status of London
The majority of those living in London voted for the UK to remain in the EU. Scottish First Minister Nicola Sturgeon said she
had spoken to London Mayor Sadiq Khan about the possibility of remaining in the EU and said he shared that objective for
London. A petition calling on Khan to declare London independent from the UK received tens of thousands of signatures.
[130][131] Supporters of London's independence argued that London should become a city-state similar to Singapore, while
remaining within the EU.[132][133][134] Khan admitted that complete independence was unrealistic, but demanded devolving
more powers and autonomy for London.[135]
Border with France

The Mayor of Saint-Quentin, Xavier Bertrand, stated in February 2016 that "If Britain leaves Europe, right away the border
will leave Calais and go to Dover. We will not continue to guard the border for Britain if it's no longer in the European
Union," indicating that the juxtaposed controls would end with a leave vote. French Finance Minister Emmanuel Macron
also suggested the agreement would be "threatened" by a leave vote.[136] These claims have been disputed, as the Le
Touquet treaty enabling juxtaposed controls was not debated from within the EU, and would not be legally void upon
leaving.[137] After the Brexit vote, Xavier Bertrand asked Franois Hollande to renogotiate the Touquet agreement,[138]
which can be terminated by either party with two years' notice.[139] Hollande rejected the suggestion, and said: "Calling into
question the Touquet deal on the pretext that Britain has voted for Brexit and will have to start negotiations to leave the
Union doesn't make sense." Bernard Cazeneuve, the French Interior Minister, confirmed there would be "no changes to the
accord". He said: "The border at Calais is closed and will remain so."[140]
Academic funding
UK universities rely on the EU for around 16% of their total research funding, and are disproportionately successful at
winning EU-awarded research grants. This has raised questions about how such funding would be impacted by a British
exit.[141][142]
St George's, University of London professor and UKIP campaigner Angus Dalgleish pointed out that Britain paid much
more into the EU research budget than it received, and that existing European collaborations such as CERN and the
European Molecular Biology Laboratory (EMBL) began long before the Lisbon Treaty, adding that leaving the EU would not
damage Britain's science.[143]
London School of Economics emeritus professor (and founder of UKIP) Alan Sked pointed out that non-EU countries such
as Israel and Switzerland signed agreements with the EU in terms of the funding of collaborative research and projects,
and suggested that if Britain left the EU, Britain would be able to reach a similar agreement with the EU, pointing out that
educated people and research bodies would easily find some financial arrangement during an at least 2-year transition
period which was related to Article 50 of Treaty of European Union (TEU).[144] The UK government promised that a major
type of EU research grant, Horizon 2020 funding, will be funded by the UK for their remaining duration after EU exit for UK
researchers.[145]
A July 2016 investigation by The Guardian suggested a large number of research projects in a wide range of fields had
been hit after the referendum result. They reported that European partners were reluctant to employ British researchers
due to uncertainties over funding.[146]
See also
Department for Exiting the European Union
European Union law
Euroscepticism in the United Kingdom
Greek withdrawal from the eurozone
2016/08/22 17:30
10 / 13
Multi-speed Europe
Referendums related to the European Union
Causes of Brexit
Notes
a. Greenland left the EU in 1985, prior to the introduction of Article 50, and as an autonomous country within the Danish Realm, not
as a sovereign member state.
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External links
Brexit (https://www.dmoz.org/Regional/Europe/United_Kingdom/Society_and_Culture/Issues/European_Union/Brexit)
at DMOZ
Gov UK Department for Exiting the European Union (http://www.gov.uk/government/organisations/departmentfor-exiting-the-european-union)
Retrieved from "https://en.wikipedia.org/w/index.php?title=Brexit&oldid=735193455"
Categories: Euroscepticism in the United Kingdom Withdrawal from the European Union
Consequences of the United Kingdom European Union membership referendum, 2016
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