Brexit is the process of leaving the United Kingdom from the European Union started in 2017 and is expected to end on December 31, 2020.
On January 31, 2020, the UK left the EU, becoming the first country to do so.
After this date, there was an eleven-month period for various treaties and agreements to be negotiated between the UK and the European Union.
Due to the coronavirus pandemic, negotiations were affected and Prime Minister Boris Johnson wanted to withdraw from the European Union without an agreement.
However, on December 24, 2020, the UK and the European Union managed to sign a treaty guaranteeing that their markets would remain open.
Definition of Brexit
The word Brexit comes from the addition of the English words "Britain” (Brittany) and “exit" (exit).
The expression is used to characterize the process of disengagement of the United Kingdom from the European Union initiated with the referendum of June 23, 2016. On this date, the British chose to leave the European economic and political bloc.
UK exit from the European Union
The year 2019 was the most complicated as the differences between British politicians become more evident, as the European Union's exit plan needed to be approved by Parliament British.
On the other hand, the British Parliament guaranteed on March 13, 2019, that the UK would not leave without an agreement. This was a proposal advocated by many members of Theresa May's own party.
However, on March 12, 2019 and later on March 25, the British Parliament rejected the plan presented by then Prime Minister Theresa May to withdraw from the Union European.
Without reaching a consensus in Parliament, Theresa May had to ask the European Union for a new extension. Thus, the expected date of departure from the United Kingdom would be October 31, 2019.
Her position weakened, May resigned from her post. British law did not provide for the calling of new elections, but for a replacement within the party chosen by Boris Johnson.
Boris Johnson and Brexit
The new British Prime Minister, Boris Johnson, is a well-known advocate of a "hard brexit", namely: withdrawing the United Kingdom from the European Union without making any kind of agreement.
In order to put pressure on MPs, Johnson asked Queen Elizabeth II to postpone the official opening of Parliament, which takes place in September, to October 14th. The proposal was accepted by the sovereign and thousands protested in the streets against the "closure" of the British parliament, but the prime minister did not back down.
Boris Johnson's aim was to impede the articulation of the opposition.
However, the first debates held by the Prime Minister in Parliament turned out to be a failure. The Conservative Party lost one of its deputies and another 21 parliamentarians were suspended for indiscipline.
Furthermore, the Parliament rejected, once again, the project of a Brexit without agreement.
In order to get more support for his idea, Boris Johnson dissolved Parliament and called new general elections. The result was an overwhelming victory for the Conservatives who won an absolute majority of deputies and were able to continue with the Brexit negotiations.
Approval of the Brexit agreement
After intense negotiations with the 27 countries of the European Union, the United Kingdom reached an agreement to leave this economic bloc, on October 16, 2019.
This time, the free movement of people and goods between the border of the Republic of Ireland and Northern Ireland is guaranteed. However, the new agreement provides for the end of special status for the UK and makes it an economic rival.
The bill passed the British Parliament in the same month. However, parliamentarians did not refuse to debate the text in just two days and forced the prime minister to request a three-month delay from the European Union.
As a result, Johnson had to agree and this time the date for Brexit will be January 31, 2020.
Brexit Background
The European Union (EU) was created with the aim of maintaining peace between the countries of the European continent.
The embryo was the European Coal and Steel Community (ECSC), born in 1952. The ECSC united former World War II opponents: France, Germany, Italy, Belgium, Holland and Luxembourg.
Later, this community was expanded in a movement that created the European Economic Community (EEC) in 1957.
The United Kingdom, however, has always remained outside the EEC and only accepted to be part of the club in 1973. Even so, two years later, they called a referendum so that the population could decide whether or not they wanted to continue. At that time, he won the “yes”.
In this way, the UK continued to be part of the EU, but did not participate in the two biggest European projects:
- the creation of a single currency, the euro;
- the Schengen Area, which allows the free movement of people.
Referendum on Brexit
Brexit's campaign has its origins in the government of Conservative Prime Minister David Cameron.
To run for re-election, Cameron joined the nationalist party, the UK Independence Party (UKIP).
In exchange for its support, this party demanded the convening of a referendum, where voters could choose between following or leaving the European Union.
UKIP argued that the European Union was taking away UK sovereignty in economic and immigration matters. Therefore, he asked that a consultation be made to the population on the permanence in this economic bloc.
The referendum was set for June 23, 2016: 48.1% voted no to leave the EU, but 51.9% voted yes.
Consequences of Brexit
The consequences of Brexit are difficult to predict, as it is an unprecedented process. For now, we observe political impacts, such as:
- The European Union's Ministry of Exit was created in the United Kingdom, which employs at least 300 people to deal exclusively with the matter;
- David Cameron resigned as prime minister and after internal discussions in the Conservative Party, was replaced by Theresa May, who assured her that she would not back down from the Brexit process;
- Faced with the impasses in reaching an agreement, Prime Minister Theresa May resigned from her post and saw her biggest opponent, Boris Johnson, be invested as prime minister.
Economic consequences for the UK
- The day after the referendum, the pound sterling fell sharply, as did the Australian dollar and the New Zealand dollar;
- the stock market and the securities market suffered a sharp fall that week. So the British government lowered interest rates and made bank loans to stem a possible loss of capital;
- the pound sterling has been losing value against the dollar and the euro;
- several companies have already moved their headquarters to countries like the Netherlands and France.
Brexit's economic consequences for the European Union
- Lose UK monetary contribution;
- will have to renegotiate all trade agreements with the UK;
- fear that Brexit will inspire other countries to do the same;
- concern about the situation in Northern Ireland, which is part of the EU but shares borders with the United Kingdom.
Calendar for Brexit
Article 50 of the Treaty of Lisbon stipulates that the negotiation can last 2 years. Initially, the process should be completed in March 2019.
In December 2017, British Prime Minister Theresa May agreed to pay 45 billion euros to leave the European Union.
In March 2018 it was announced that there will be a two-year transition period when the UK to leave the European Union definitively in 2019.
On November 24, the 27 countries of the European Union agreed to the exit terms made by Great Britain. This must be ratified by the British parliament.
Thus, the UK would officially leave the European Union on March 29, 2019, but the process was postponed until April 12, 2019.
Without Parliament's approval, Brexit was again set for January 31, 2020, with a one-year adaptation period.
Brexit negotiations
Negotiations between the UK and the European Union are taking place little by little. The proposals that caused the most controversy concerned the customs model and the Irish border.
Let's see how this impasse was resolved:
customs model
Initially, the intention was to create a free trade zone between the UK and the EU. This plan, however, was rebuffed by more radical Brexit supporters who claim it would not bring back sovereignty to the UK.
Thus, the United Kingdom will not have any privileges when trading with the European bloc and will receive the same treatment as other countries in the world.
northern Ireland
Northern Ireland borders the Republic of Ireland, which is a member of the European Union. With Brexit, the two countries would once again have checkpoints, which would hamper the movement of people and goods.
In October 2019, Boris Johnson presented a proposal that pleased the European bloc. This territory will form part of the United Kingdom Customs Union, but must respect the rules of the European Common Market.
Disagreements in the British Government over Brexit
The clashes between supporters of a total break with the European Union and an amicable divorce, as Theresa May wished, exposed the differences that existed in the British government.
On July 8, 2018, after a weekend of tense negotiations, the minister responsible for Brexit, David Davis resigned after disagreeing on the maintenance of the customs union between the UK and the EU after the Brexit.
Two days later, it was the turn of the then Minister of Foreign Affairs, Boris Johnson, to resign from his post for the same reason. Boris Johnson was one of the main critics of May's policy.
British Government Proposal for Brexit
On July 12, 2018, the British government presented its proposal to leave the European Union. The document suggests the formation of a free trade zone in goods with the European Union. In addition, it proposes:
- The control of customs taxes and its commercial policy;
- The approval, by the British Parliament, of European laws and regulations that would come into force in the United Kingdom;
- The extinction of the free movement of people, but new legislation would be created for those looking for work or wanting to study in the UK.
On November 14, 2018, Theresa May presented the proposal to the British Parliament that contemplates her Brexit ideas. For disagreeing with the terms of the document, the minister for Brexit, Dominic Raab, resigned from the government.
Some points of this agreement are:
European citizens
Anyone who is a national of any European Union country and entered the United Kingdom before March 29, 2019 will be able to remain in the country with all their rights respected.
Likewise, the UK has pledged to respect those who take up residence there during the transitional period as well.
For their part, the British will lose the right to walk freely and take up residence in the countries of the European Union.
Budget
The United Kingdom will continue to contribute until the year 2020 to the European budget. However, for the five-year period 2021-2027, the British must no longer make economic contributions.
They will continue to pay the expenses and pensions of British employees in the EU, something that is expected to last until 2064.
Gibraltar
Great Britain has a territory that borders Spain: Gibraltar. Under pressure from Spain, the European Union has ensured that any change in Gibraltre's statute will have to have Spanish approval.
This idea was rejected three times by the British Parliament.
Brexit: yes or no?
Former Prime Minister Theresa May categorically reaffirmed that the government did not contemplate the possibility of Brexit not happening. Likewise, he reiterated that there would not be another referendum on this issue.
The Court of Justice of the European Union ruled on December 9, 2018 that the United Kingdom could leave the European Union without an agreement with the 27 European partners.
Again, British parliamentarians voted on Brexit on March 12 and 29, 2019 and, once again, Theresa May's proposal was rejected. Faced with this defeat, May resigned.
In the streets, both supporters of departure and permanence organize demonstrations in order to put pressure on the government.
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