Monday, February 3, 2020

European Union (EU) Divorce; Britain takes off

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European Union (EU) has changed since its inception after the end of Second World War as the European Coal and Steel Community (ECSC) founded by the Treaty of Paris in 1952 to avoid eruption of 3rd world war from which the founders of EU had emerged. So has UK.  EU was formed in 1993 and incorporated the European Economic Community (EEC) which was started for economic reasons in 1957.

Britain joined in 1973 and after 47 years of membership, it has finally been the first to leave the world’s most developed regional group, EU. Then, Britain was moved by a number of principles such as; it’s better for nations in the same neighborhood to make decisions together, it benefits everyone if richer nations assist poor one. Now, Britain leaves to gain back control. The journey which started in 2016 referendum to exit EU, with 52% voted to leave the bloc, and expected to end in March 29 2019 officially ended on 31st January 2020. However, the relationship is far to be off as UK and EU has to work together and figure out the details of their future relationship in terms of trade, finance, security cooperation.Though majority of the older UK citizens have gone to the streets celebrating, the young are in despair, anger and feel betrayed. The 1993 single market that allowed EU’s free movement of goods, capital, services and people won’t be a privilege anymore. A British citizen whose children could study, live and work in EU now has to start adjusting to a new culture of things unless Britain pays to be associated with EU programme. However that depends on its’ future relationship with EU set to be completed by December 2020.
The UK citizens have to forget about free movement within EU, collaborations in research, easy acceptance to EU universities, funding, free trade.UK may lose market, investments, experience depressed growth and employment and this could push it to beg to get back to bed with EU. Since the beginning, Britain had its privacy issues along those 47 years it spend inthe relationship; for example, it never adopted the Euro, EU’s common currency, complained of EU’s supernatural nature which made Britain lose control over its parliament, its borders, immigration and that was the major reason for the 2016 referendum. However, it appears that those privacy issues are likely to cost it as UK is now required to hand over more than £30bn to settle liabilities, guarantee rights to EU expats living in Britain and establish a customs border down the Irish Sea. UK will also lose all its representation in EU decision making but will remain subject to the community’s rules during the transition period.
As UK’s space narrows, its citizens may experience benefits in the short term such as boost in wage rate, better health care, less immigrants but again may face economic hit as it loses its main trading partner the EU, which has and will lead to firms leaving UK's market. However, UK is not worried about economic consequences as such, the emotional appeal to regain control and for UK, Brexit is a win. Meanwhile, it is prepared to handle the consequences of the break up after the relationship is off and it believes there is a way to win. Britain knew that they were going into a huge risk even before the referendum vote. David Cameron in 2013, while a prime minister said; ‘that’s a huge risk to Britain-to British Families, to British jobs and-it’s irrelevant. There is no going back’ and he was right. Finally, Britain has exited the EU and there is no going back.

However, EU is still loving its baby despite deciding to abandon its father. ‘We will always love you and we will never be far’, the president of the European Commission said as the EU parliament approved  Brexit deal on January 29th after Britain parliament approval of the deal on January 23rd
marking the first country to exit EU, the model of cooperation and integration in Africa, Asia and Middle East.


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