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Caius Cooke
AP Language
Mr. Phillips
14 December 2016
Brexit; Was It the Right Choice?
The United Kingdoms people have spoken, and their voices were heard across the world. For
years, the European Unions clement immigration laws have left many British citizens in fear. Not to
mention, the hardworking taxpayers of Britain have reached a breaking point when it comes to losing
nearly half of their paycheck at the Unions benefit. On the twenty-third of June, Great Britains people
decided to leave the European Union, and the fate of that decision remains somewhat unclear. Britains
vote to leave the EU (dubbed Brexit) could benefit, or possibly hinder, their trading system in result of
the decline of the British Pound; but also it could be the first domino to fall over, with Netherlands or
France next in line.
June 23rd sent a shockwave of reports through the World, a lot of them largely emphasizing the
evident decrease in the Sterlings value. Dr. Andrei Nikiforov says, Two days after the vote, the pound
dropped to its lowest value in more than 30 years. Before the vote, the pound was worth 1.479 US
Dollars; as of now, it is worth 1.217 US Dollars. What does this mean? you might ask. For one, the
British Pound depreciation in value has triggered a swarm of tourists from China and America, a total of
30% more tourists in the summer compared to 2015 (Collinson, Jones). This surge of tourism has shown
a sharp increase in Englands retail sales, going up by 1.4% from June to July (Collinson, Jones). This is
very beneficial to individuals that enjoy visiting England, but dont enjoy the cost; however, the British
are having a harder time taking vacations to countries such as Sorrento, Italy, and Corfu, Greece
(Collinson, Jones).

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The British Pounds value abatement repercussions didnt stop with tourists and globetrotters; the
British companies affiliated with global trade have experienced a few differences post-Brexit. Large
exporters in England have experienced profit increase worldwide. A depreciated monetary value means
the countries importing these companies products will be able to pay less money, which is projected to
increase demand and profit. This could mean two things for Britain; a pay raise for some of the exporting
companies laborers, or a raise in the actual number of laborers (Chu). However this doesnt create a
stable system of trade for the British, because companies that import their goods and produce
domestically will be paying more money, eventuating in a steady loss of profits (Nikiforov). The nation is
in a state of confusion, unable to gauge the future success of companies as a whole. While trading profits
still remain a problem, an even bigger one faces the post-Brexit parliament.
When Great Britain was with the European Union, all 28 countries traded in agreement
that there will be no tariffs or quotas imposed on EU members; but Britain is no longer a part of the
Union. Under Article 50 of the Lisbon Treaty, the treaty that holds the constitutional basis for the
European Union, it is stated that any country that leaves the Union will have 2 years to compose a new
trade agreement (Milmo). The complications with Brexit has not left the leaders of the Union looking
towards Great Britain in good taste, so the possibility of tariffs and quotas on British imports and exports
is likely, according to Dan Milmo. The agreement made could determine the outcome of the British
economy. Nathan Bomey says, Some 54% of British goods trade is conducted with EU member
countries, according to a 2014 report by the Centre for European Reform. Any form of tariff could be a
significant increase in the countrys spending, but the World Trade Organization will be monitoring the
negotiations and trade deals during the two years. The WTO pushes for free trade; their goal is to lift
tariffs and other trade barriers, while promoting economic growth. This might be exactly what Britain
needs during the two years of negotiation with the EU. After two years, if there is no formal agreement
made, the two parties will need to extend their negotiations.

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The future seems bright for Great Britain, but for now there is some trouble with the European
Central Bank. Much like trading goods, trading services was accepted throughout the EU, nullifying the
need to be in the same country to sell banks, lawyers, accountants, and other financial services. Roughly
twelve percent of Britains gross domestic product was a result of trading these services. The post-Brexit
European Central Bank has decided to revoke those privileges. No one is quite sure about what will
happen to that booming English industry, but hopefully the trade agreement will work it out.
The largest contender of Brexit is Germany. The German people have been the largest
contributors to the EUs net fund, and the current leader, Chancellor Merkel, happens to be fairly
moderate, favoring the status quo. Her open-border policies and Eurozone implementation have
essentially scared the British away in fear of an overpopulated, Soviet European Union. Chancellor
Merkel sees no way to properly recover the European Union, so she has announced to her people that she
will not be running for a third term. The reason behind this is because no matter what she does, the EU
will more than likely collapse, and she doesnt want to be the one responsible for it (Chrisatis). According
to Anne Sylvaine Chassany, Germany is stuck between a rock and a hard place. Either the German
parliament pushes to mediate the situation and get possible charges of Hegemony, or they do nothing and
the Frexit supporter becomes the leading EU power.
The anti-immigration, anti-European Union party leader in France, Marine Le Pen, is planning on
running for President in 2017. Her victory will ensure a French referendum of EU membership, which
will more than likely be a vote casted to leave, which was inspired by the brave Brexit (Chassany). In
combat to her rising power, the socialist party leader and President of France, Francois Hollande, is trying
to get the people to support his plan to restore the EU. Considering his term is over in 10 months, there
isnt much Francois Hollande can do.
This anti-European Union scare is happening across the board, even in Netherlands. On the day
after the vote, Geert Wilders of Netherlands celebrated their leave publicly. Wilders is growing in

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numbers of the Dutch Opinion Polls, and is currently the largest party in the polls (Foster). His movement
could cause a Dutch exit, but many are skeptical that he could actually get it done. Nonetheless, Nexit
will be a major role in the Dutch election of 2017.
Although very minor, the Brexit result is affecting a recent Italian proposed referendum. Italys
government is corrupt and due for change and Prime Minister Renzi plans on doing so. Considering
Italys parliament has two branches of the same size, it is very difficult for them to get anything done.
Renzi has decided to cast a vote soon to reform the parliament, however, if the people decide to keep the
government the same, Renzi will resign from office (Aleem). This action would give way to the antiEurozone party called the Five Star Movement, who plans on getting rid of the Euro. This could be very
dangerous in Italys current circumstances with the Bank. Zeeshan Aleem states that if Italy allows the
Euro to be removed from their economy, the investors in Italian banks will revoke their investments,
causing a crash similar to the one in the United States in 2008.
Brexit has its advantages and disadvantages, and they seem to be pretty equal. In the bigger
picture, Britain can handle its own trade deals, immigration policy, and income tax; but in the start of this,
Britain seems to be on the losing side of things. The economic impact of Brexit on the EU is primarily the
inspiration given to other members to leave the Union. It may seem rough at the beginning, but the
members of the Union will be better off economically as individual nations in the European continent.

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Works Cited
Aleem, Zeeshan. "Italy isn't quite on the verge of its own Brexit. But its Sunday referendum still
matters a lot for Europe." Vox. N.p., 02 Dec. 2016. Web. 13 Dec. 2016.
Bomey, Nathan. "Brexit fallout shakes up global trade." USA Today. Gannett Satellite Information
Network, 24 June 2016. Web. 20 Dec. 2016.
Chassany, Anne-Sylvaine, Stefan Wagstyl, Duncan Robinson, and Richard Milne. "How will Brexit
result affect France, Germany..." Financial Times. N.p., n.d. Web. 13 Dec. 2016. Bomey,
Nathan.
Chrisafis, Angelique, Sam Jones, Kate Connolly, Rosie Scammell, and Helena Smith. "How Brexit
is reshaping domestic politics in EU member states." The Guardian. Guardian News and
Media, 29 June 2016. Web. 13 Dec. 2016.
Chu, Ben. "7 ways the fall in the value of the pound will affect me." The Independent. Independent
Digital News and Media, 4 Oct. 2016. Web. 13 Dec. 2016.
Collinson, Patrick, and Rupert Jones. "The post-Brexit pound how sterling's fall affects you and
the UK economy." The Guardian. Guardian News and Media, 13 Dec. 2016. Web. 13 Dec.
2016.
De Vera, Ben O. "Asia-Pacific Trade Seen to Weather Brexit Tragedy." Philippines Daily Inquirer.
N.p., 1 July 2016. Web. 13 Dec. 2016.
"Dutch politicians shocked by Brexit vote, see EU reforms ahead." Dutch News. N.p., 24 June 2016.
Web. 13 Dec. 2016.
Foster, Alice. "What is Nexit? Will the Netherlands leave the EU next? ." Express. N.p., 26 July
2016. Web. 13 Dec. 2016.

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Milmo, Dan. "How will Brexit affect Britain's trade with Europe?" The Guardian. Guardian News
and Media, 26 June 2016. Web. 13 Dec. 2016.
Nikiforov, Dr. Andrei. "Brexit Economic Impact: 5 Ways It Affects US Stocks, Trade, Currency
And More [OPINION]." International Business Times. N.p., 08 Aug. 2016. Web. 13 Dec.
2016.