Brexit is an abbreviation for “British exit” referring to the UK’s decision of leaving the European Union.So,before discussing more about this let us first discuss about ‘What is European Union?’
The EU is a political, trade and economic union founded in 1957. It evolved over decades and reached its present model in 1992.There are 51 countries in Europe, out of which 28 countries have signed a treaty to become a part of the European Union. So, clearly, there are countries in Europe which are not part of the European Union.
The EU treaty provided for a European Parliament and European Council which consisted of representatives of the member states.EU members account for 16 per cent of world imports and exports.It is the largest trading bloc in the world surpassing the US.
In 2012, the EU was awarded the Nobel Peace Prize for advancing the causes of peace, reconciliation, democracy and human rights in Europe.
What is the Euro Area?
The Euro Area (EA) is a subset of the EU, which is a monetary union of 19 of the 28 countries which use the common currency, Euro.Not all EU members use the Euro. Britain is an EU member, it is not part of the EA. It does not use the Euro and has retained its own currency, the Pound Sterling.
Now the question arises “Why the ‘Leave EU’ campaign?” started:
The Leave Campaign argues that Britain is losing out a big deal by staying in the EU.It has to pay millions of pounds each week as a contribution to the European budget.
The extremely bureaucratic nature of the European parliament is hurting British exporters.
Migration from the European Union into Britain (mainly PIGS economies) is creating an imbalance in the welfare schemes of the UK government.But, those who oppose the campaign say that Britain is a net gainer if She stays in the EU.
About the referendum and the result:
A referendum denotes voting in which everyone of voting age can take part, normally giving a ‘Yes’ or ‘No’ answer to a question. The side which gets more than half of all votes cast is declared a winner.
Prime Minister David Cameron (Conservative Party) had promised to hold a referendum for Brexit if he won the 2015 general election. But, he led the campaign for ‘stay’ vote.
There were growing calls from many MPs of the Conservative Party and the UK Independence Party (UKIP), for a new referendum. (In 1975, Britain had voted to stay in the EU in a referendum).
A referendum was held on June 23, 2016, to decide whether Britain should exit or remain in the European Union.
Eligible voters: All British, Irish and Commonwealth citizens over 18 who are resident in the UK, along with UK nationals living abroad who have been on the electoral register in the UK in the past 15 years.
51.9% of voters favoured exit of Britain from the EU. It is the first time since the EU was founded in 1957 that a member country is leaving.
Hence,Britain declared it’s exit from the European union popularly known as Brexit.