Brexit

1. What is Brexit?

The word Brexit comes from the junction of the English words "Britain"
(Brittany) and "Exit" (exit).
The expression is used to characterize the exit process of the United Kingdom
from the European Union initiated with the referendum of June 23, 2016 and
expected to end in the first quarter of 2019.
In a context of time, on November 24, 2018, after two years of negotiation, the
European Union accepted the agreement presented by the United Kingdom;
and on March 21, 2019, its formal exit is expected, but will still have a period of
two years to complete its final exit.
The European Union (EU) was created with the aim of maintaining harmony
between the countries of the European continent.
The United Kingdom, however, always remained on the sidelines and only
accepted to be part of the group 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 largest European projects that were, the creation of a single currency, the
euro, and the creation of the Schengen Area, which allows free movement of
people.

2. Brexit Referendum

The British were called to vote on June 23, 2016 to decide their future as a
member of the U.E.EU will decide whether they want the United Kingdom to
remain in the European Union or to leave the common bloc.
No member country has ever left political and economic union. Since its
inception, the U.E. has only expanded. The British exit will be interpreted as a
major blow to the European project.
This referendum resulted in: 48.1% voted not to leave the EU, but 51.9% voted
yes.
However, over the course of October 2018, thousands of people, mostly young
people who were not old enough to vote in the 2016 referendum, joined Hyde
Park and the British Parliament to demonstrate their displeasure at Brexit
On this occasion, Scotland's Prime Minister Nicola Sturgeon also called for the
convening of a new referendum which included the option of staying in the
European Union.
At the origin of this protest was the "People's Vote" campaign, which claims a
popular vote to the outcome of the negotiations for Brexit because they
believe that the result will be very different from that obtained with the
campaign for the 2016 referendum that determined the British exit of the EU.
The popular vote is a campaign promoted by a number of organizations,
including Open Britain and Britain for Europe, which argues that a new
referendum is in the interest of both those who voted against those who voted
at the time in favor of Brexit.
Following these demonstrations, British Prime Minister Theresa May said she
was considering extending the transition period between EU exit and the entry
into force of an agreement regulating relations between the UK and the EU
bloc beyond December of 2020.

3. Consequences of Brexit for Portugal

The consequences of Brexit are difficult to predict, as it is an unprecedented

process.
For the time being, we note political impacts: the Ministry of Exit of the
European Union was created, which employs at least 300 people to deal
exclusively with the subject; and David Cameron resigned as prime minister and
after internal discussions in the Conservative Party, was replaced by Theresa
May, who assured that he would not go back in the process of Brexit.
Impacts of an economic nature: exporting companies may be among the
economic agents most affected by Brexit, as the United Kingdom is one of the
main international markets, thus a decline in the economy and purchasing
power, accentuated by the devaluation of the pound against euro, punishes
Portuguese exporting companies, but also because it anticipates the return of
customs duties to products destined to the British market that originate in the
European Union.
This threat is highlighted by António Afonso, an ISEG professor. "For Portugal,
the effect may be felt in terms of trade, which may be reduced by an
imposition of import tariffs by the United Kingdom"
(https://observador.pt/2016/06/24/o -which-can-cost-you-brexit-a-portugal /).
Exit from the EU also means abandoning the customs union.
However, there is the expectation that a free trade agreement with the
European Union will be negotiated to soften the economic impact of Brexit on
both sides. And, more important than customs duties, is the compatibility at
the level of technical specifications and environmental requirements of the
goods traded.
The UK market absorbed 6.7% of Portuguese exports of goods in 2015, a share
that has been growing steadily since at least 2011. In the past, sales to the
United Kingdom accounted for 3,350 million euros and the balance was clearly
positive for Portugal. Machinery and apparatus for motor vehicles and
transport, clothing and footwear and food products are among the main
Portuguese exports to the pound country.
The United Kingdom is the fourth most important market for Portuguese
companies and in 2015 exports of goods and services to this country exceeded
7 billion euros.
The British are also investors in Portugal. Last year, they were the second most
invested country in Portugal, with around 582 million euros.
Data from the UK Trade and Investment, which corresponds to the British
Aicep, also reveal that there are 100 UK companies investing in Portugal. The
UK's main investments are in the textile and wine sectors in the north of the
country and in real estate and tourism in the south. The presence of English
companies is still important in the energy sector, with BP, the only
multinational in the sector still in Portugal, and International Power, a
shareholder of companies that operate power plants, Tubogás and Tejo
Energia.
The departure of the United Kingdom will necessarily have an impact on
European policy and, consequently, on relations between Portugal and Europe.
With regard to emigrant citizens in the United Kingdom it was stipulated that
whoever possesses the nationality of any European Union country and entered
the United Kingdom before 29 March 2019 may remain in the country with all
their rights respected.
Similarly, the United Kingdom has undertaken to respect also those who
establish residence during the transitional period.
For their part, the British will forfeit the right to move freely and to establish
residence in the countries of the European Union.

CONCLUSIONS

The United Kingdom of Great Britain and Northern Ireland, by simple majority
of the votes of its citizens, has chosen to renounce membership of the
European Union.
We are not sure that the British people have taken the best option by the
majority. On the economic-financial level, probably not.
Badly or well, the British people took a stand through the referendum. The
generational question has been put very much, one could conclude that the
older generations, by their greater experience of life, will, from the outset, be
wiser. However, this is not the opinion that prevails, since the younger
generations have shown revolt on this subject and have even claimed the
holding of a new referendum.
With regard to emigration, exit from the United Kingdom of the European
Union could lead to a change in the policy of open doors for EU citizens, and to
block the arrival of immigrants from outside the EU, which is generating great
fear in the community Portuguese in England.
What can also be concluded is that leaving the European Union may allow
greater autonomy for the UK in terms of foreign trade policy, but it also means
a loss of its influence on the future of European regulation.
Brexit is still a big unknown, both for the UK and for the European Union. Only
the future will unravel if this was a good or bad solution for the English.
What is certain is that this whole situation is being a major bruise in the history
of the European Union.