United Kingdom one of the most influential members of the EU is no longer its ally now. European Union finally lost one of its most powerful & strong members – the United Kingdom on 31st January after a long hustle. European Union has been an intergovernmental organization of European Countries for over 45 years. U.K had great importance to EU in many essential aspects – Geographically, Economically & Politically.
Though, the effect of Brexit remains speculative until the U.K’s post-Brexit relationship become clear with the EU. Eventually, U.K will need to have a good relationship with the EU because of its economical & trade needs whereas it will be hard to cooperate with Brexit loss for EU as well.
Unambiguously, there are a few things which Brexit has indicated sharply – During the 11 months Brexit Transition Period (February 1st to December 31), U.K would gradually & securely settle its market & economic ties outside EU agreement. Thus, it’s a period of Brewing & reorganizes their structures out of EU world. At the same time, there is a mammoth loss for EU caused due to Brexit as EU powers are destined to decline further in the upcoming years. Europe as a Continent is already facing a long term democratic crisis. Europe is the oldest continent across the Earth with a median age of 45. Its working-age to decline to approximately 50 million people by 2035.
Apparently, on the other side, the EU has many Competent & Capable militaries with Robust Economies. Which strengthen the European Union regime & its influence across the world. EU still comprise 3 out of 10 economies that belongs to Top 10 Economies Club even post Brexit – France, Germany & Italy. EU will leave the UK with new tariffs & other barriers will come into forces after the Transition period ends on January 31. This will put an onus over UK administration to cope up with new Trade rules. Now, it’s a need of an hour for UK to have some tax relaxation with EU in Trade deals. Here, the EU has a chance to negotiate according to its favours as the EU is a big market for UK which unfolds a great negotiation space for EU.
Brexit – Again for the U.S
The day after Brexit was voted, the currency market was in turmoil. The Euro fell 2% to $1.11 & Pound fell 8% to $1.36. Which means both increased the value of Dollar. Thus, Directly or Indirectly the whole Brexit exercise will benefit to the U.S as well to an extent.
The threat of Dissolving EU
Vividly, if we have a look at entire Brexit exercise, we may see a rise of Anti-immigration parties throughout Europe. And, if these parties get a good ground in France & Germany which is the backbone economies of the European Union. Then, France & Germany can also lead to vote against the EU which may hit the EU badly.
European Union should somehow turn its attention towards these sensitive concerns before it is too late. In this hard time when Coronavirus has hit EU the most, it is going to face a big crisis which may derail its attention towards the real issues affecting the European Union. A partisan is never a good option though it looks like a solution.
