Brexit Decision

There is some free space in the EU now.  1 “GB” to be precise!  Yes, the Brexit is upon us.  24 June 2016 will be remembered in history as the day Britain voted to become Independent.  The British now have only three vowels in their dictionary, having decided to leave the “EU”.

When the voting closed, the mood in the “Remain” camp was upbeat, heartened by YouGov data predicting a 52-48 win for “Remain”.  It was going to be close but analysts felt confident that we would remain in the EU  Results for Sunderland and Newcastle were the initial clues and the reality sank in further as it became clear that Wales was for leaving.

Britain’s exit from the EU sent shockwaves across the world.  The global markets lost about $2trillion in value on Friday.  The British Pound dived against the US by 18 cents at one point, its lowest since 1985.  The fall was even larger than during the global financial crisis and the currency moved two to three cents within the blink of an eyelid. Fears of a broader economic slowdown lead to decrease in oil prices by nearly five per cent and even emerging market currencies plummeted.  The blow to investor confidence also lead to investors stampeding into low risk sovereign bonds and safe harbour assets such as gold.

The Brexit has created various uncertainties for the man in the street which include job security, immigration, pensions, business and economy, the housing market, National Health Service (NHS) and the future of the United Kingdom, to name a few.

Demand for local autonomy has led to devolved assemblies in Scotland, Wales and Northern Ireland and if the economic effect of Brexit turns out to be as bad as many predict then the constituent nations could seek a referendum to chart their own independent futures.  It is also not inconceivable that other EU members could be following the UK’s example.

The referendum does not mean that Britain will leave the EU right away. Article 50 would have to be invoked which sets out the framework for any country to leave the EU and it would take probably two years or even more before the arrangements and negotiations are settled.

At the present time only one thing is certain, that the Prime Minister has resigned.  It is scary that no one really knows or can predict what happens next or what the future holds but even those who do not agree with the result have to accept it and work together as we disentangle ourselves from this self-inflicted wound called “Brexit”.

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