European Union was constructed to counter United States of America and Soviet Union along with possible threat China and India. But now United Kingdom exits from European Union on 31st January 2020. At present United States of America, Russia, China and India are very dominating position in World Politics. It is very hard to any European Country to search itself in the mainstream of Politics. India and China are fastest growing economy and have human resource. To counter India and China, European Nations made an organization. That is called “European Union” in which there were 28 Nations. It is 27 Nations after Brexit. BREXIT MEANS, ”Great BRITAIN EXITS FROM EUROPEAN UNION.”
A Referendum was taken place in June 2016 in which 52% people voted to leave European Union while 48% people remained with European Union. After referendum, British Government announced to withdraw from European Union by March 2017. Process was started to withdraw from European Union. Withdrawal was very crucial because of Britain Parliament. Deadlock in UK Parliament delayed its withdrawal from European Union. Finally General Election was held by Conservative Party Leader and Prime Minister of UK Boris Johnson. After General Election, UK Parliament voted once again, then BREXIT Deal was done. At the midnight of 31st January 2020, Great Britain formerly evicted from European Union. Although it will take 9 to 10 months to snap from European Union, Process has been begun.
It was all started in 1951 when Inner Six (Belgium, France, Italy, Netherland, and West Germany) signed a Treaty of Paris to establish the European Coal and Steel Community (ECSC). After that Treaty of Rome was set up the European Economic Community (EEC) and the European Atomic Energy Community (EURATOM) in 1957. In 1967, This Organization was known as the European Communities (EC). At that time, United Kingdom (UK) tried to join this Organization in 1963 and 1967 but The then President of France Charles De Gaulle vetoed both times not to entry United Kingdom in European Communities. Finally United Kingdom became member of European Communties in 1973 under the then British Prime Minister and Conservative Leader Edward Heath along with Denmark and Ireland.
But Politics over European Communities was still on in United Kingdom. In 1974, Conservative Party was defeated by Labour Party. First time in United Kingdom, A Referendum took place on which United Kingdom should stay with European Communities or not in 1975. In that referendum, Two Countries of United Kingdom Scotland and Northern Ireland voted to stay on in European Communities, but England wanted to leave European Communities with 67.2% Voting. Due to divide on that issue, Matter was called off by Labour Party. In 1983, Labour Party made that issue in the Election and announced if Labour Party came in Power, European Communities would be leaved without referendum. That trick backfired to Labour Party. After that Labour Party changed its strategy after Election in 1985. The then British Prime Minister Margaret Thatcher signed the Single European Act without referendum. UK Government joined the European Exchange Rate Mechansim (ERM). Due to heavy oppose of ERM, The then Prime Minister Margaret Thatcher had to step down. Finally United Kingdom withdrew its support to ERM in September 1992. After that European Communities became European Union as per MAASTRICHT TREATY in November 1993. During that period, Eurosceptic Ideology was developed in United Kingdom. Eurosceptic means to oppose closer ties with European Union. Leaders like Margaret Thatcher and David Cameron wanted Europe as a single market, but denied closer ties with European Union. UK Independence Party (UKIP) started its journey in political arena of United Kingdom in 1993. It was a pure Eurosceptic Party. Its seat and vote share increased slowly and slowly. After 1993 at every Election in United Kingdom, This party took on well against with Labour Parry and Conservative Party. In 2014, UKIP defeated Conservative Party in By Poll.
It was rise of Modern Eurosceptic Ideology in United Kingdom. The then British Prime Minister David Cameron announced if he would be elected Prime Minister of United Kingdom so he would make a referendum on BREXIT in 2014. It was announced due to immense pressure of UKIP due to rising its vote. At last, David Cameron was elected Prime Minister of UK once again. He organized a referendum on BREXIT on 23rd June 2016 in which 51.89% votes came to exit from European Union while 48.11% voters wanted to remain in European Union. The then British Prime Minister David Cameron was a Eurosceptic Leader but did not want to leave European Union due to Economic Benefits. Finally he resigned and His Conservative Party made Theresa May UK Prime Minister to work out how to exit from European Union. Withdrawal from European Union was processed under Article 50 of European Union. Prime Ministership of Theresa may came to end due to no majority in House of Commons. Conservative Leader Boris Johnson became Prime Minister of United Kingdom, he failed to persuade Members of House of Commons. Finally he dissolved House of Commons and Election took place in 2019. Boris Johnson brought full majority. He started to sort out pending issues on BREXIT. BREXIT did very smoothly work but issue on Northern Ireland and Republic of Ireland was tensed. It was called BACKSTOP in which Border between Northern Ireland and Republic Ireland would not be internal border. It would be External border because United Kingdom exited from European Union. Goods and Commodities are carried through that border easily, but after Brexit, it would be paid tariff.
According to Financial Times, Great Britain is set to break or scrap almost 759 International Agreements with Nations of European Union. Except it, 168 Agreements of Non – European Union Nations will also be broken. Economists believe that Great Britain would be in huge loss after Brexit. Per Capita Income of Great Britain will decrease for long time. If Per Capita Income reduces, GDP Growth will also hit negatively. During European Union time, Great Britain made a lot of agreements and treaties with European Nations and Non – European Nations. There was a collective force of European Union with Great Britain during dealing with other Nations. According to a study, Inflation of United Kingdom increased by 1.7% after referendum for Brexit in 2016. Financial Times showed that British Income reduced by 1.3% in December 2017. According to Economists, Great Britain had strong positive position for its Economy before leaving European Union. After Brexit, Great Britain will have to pay Tariff to export its goods to Nations of European Union and rest of the world.
India invests more in the United Kingdom than Nations of European Union as per norms of European Union. Now United Kingdom exits from European Union so its negative impacts would come on India. United Kingdom is third largest Foreign Direct Investment (FDI) in India. There are more than 800 Indian Companies which have large business in United Kingdom would suffer. It was considered that United Kingdom was a gate way for India to enter European Nation Countries. By now Indian Companies had border free access to rest of European Countries but now it is so hard to enter their market. As per a report of NASSCOM, Indian IT Industry set to take negative experience due to the BREXIT. It will lead due to depreciation of the Pound. After BREXIT, Spikes in the price of imported goods will surge, so Indian Companies will suffer a lot. There can be many positive effects on Indian Economy. Great Britain will seek New Free Trade Deal with India and rest of the world after Brexit. India will have in positive marks due to its strong fundamental economy and human resource. India is one the most Foreign Direct Investment (FDI) Invertor for United Kingdom so British Government will deal with India to stay Indian Investors there. It is expected that Great Britain will offer India more tax free business and relaxed regulations.
After BREXIT, It would be politically and economically tough for Great Britain to find a way for its growth and development. European Union was very co-operative for Great Britain. Now Great Britain would emerge itself with World Economy and take on lonely with Tough competition with Developed Nations like US, Canada, France, Germany, Japan, etc. along with developing Countries like India, China, Brazil, South Africa, etc. Brexit will damage economy of Great Britain for short time and may create more hurdles for long economical goals.