What is at Stake If UK leaves EU?

By Juma / Published June 24, 2016 | 7:28 am

People in the United Kingdom no longer want to be part of the European Union and have opted to leave. What will change from this exit? Will the economy of the United Kingdom and that of Europe be shaken or affected in any way? What is at stake for African countries too?

As Britain packs her belongings to exit the European Union, many things are going to change especially concerning the policies. First to feel the heat will be countries and nations that have been trading directly with the United Kingdom using the rules and guidelines under the European Union. This means that the United Kingdom is now going to be independent, setting her own rules and policies of trade that a nation willing to participate will have to adhere with first.

The British economy, the immigration policy as well as international relations are going to be affected. Despite the fact that the Brexit vote is not legally binding in the United Kingdom law, the will of the people is widely respected and it will be a political suicide, according to British Broadcasting Corporation, BBC, for the government of the day to go against the will of the people of Britain.

Economic analysts are foreseeing Britain going into recession if the matter will not be handled properly. This is because there will be immediate effects that will arise due to prevailing uncertainties about the clear position of Britain in the European Union. Effects were already witnessed this Friday morning as the British Stock market opened lower. The chancellor of Exchequer in Britain had on Thursday hinted that he would suspend the stock market if the Britons voted for the exit.

The financial market reaction to Brexit Vote has already been brutal, share markets as traders run into safe haven assets for fear of losses. 50 billion US Dollars was wiped off the ASX200, which dropped 3.2 percent, and futures markets were pointing to a plunge of up to 9 percent in the UK’s stock market according to BusinessDay Magazine.

If the economy of Britain will be affected, many countries that are not even within the European Union will eventually feel the heat. Most African nations, despite the fact that they receive much of the funding from the United States of America, some funding comes from Britain too. If Britain’s economy will shake, this funding will have to be cut off.

About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

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