Brexit : Origins And Consequences

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Brexit: Origins and Consequences

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Blain Kylian – Baron Jeanne

Sous la direction de Mr Denniel

Decembre 2016

Introduction:

During the 1960’s, in the globalisation context, the United-Kingdom decide to join the European construction. However, it’s only in 1973 that they are accepted in the European economic construction (EEC). This community, was essentially based on the economic field until 1992, and evolve with the Maastricht agreement. Thus creating a real institution: The European union.

However, despite the British willingness to become a part of the European project, refractory opinions are emerging alongside. As witnessed by the British desire to quit the European union, last June. This unprecedented event in the European union, is then called: Brexit.

The term Brexit came from the English abbreviation of “British Exit”. So we can define Brexit as the departure of the United-Kingdom from the European union, and in particular of the common market which so far was composed of 28 countries. The European common market is a market in which factors of productions, capital and labour force can move freely. But there’s also a harmonisation of the social norms such as the TVA, productions norms or degrees and qualifications.

Since the United-Kingdom’s integration in the European union, some opposite views face to the European project have emerged in the political field, the economic field, and also among the society and the businesses. These opposite views, which exists since the 1990’s, have become more pronounced during the last decade. Particularly with the different problems the United-Kingdom have been facing recently: such has European fundamentalism, the financial crisis, or migratory crises.

However, this United-Kingdom exit from the European union won’t be without consequences. Actually, this one would be experienced both in the economic field, political field and social field in the United-Kingdom and in the European union.

1. United Kingdom: Since the beginning a European exception

I.A. United Kingdom and European Union : From the EEC to the Brexit ( 1973 – 2016)

I.A.1.  Since 1973: an emerging Eurosceptic vision

Since their integration in the EEC (U. E's ancestor) in order to face the emergence of globalisation, the British have always been distant vis-à-vis Europe. From 1983,an Eurosceptic vision is developing in the UK. This is then defended by Michael Foot, Labour’s leader, who calls for the exit of the UK from the EEC. That’s why, in 1992, UK obtains numerous exemptions face to some European policy with the clause opt-out. In Fact, this clause allows UK to stay outside of the Eurozone and of the Schengen area. However, with the sovereign debt crisis in 2009, British Euroscepticism particularly strengthened (Le Monde, 2016)

Cf graphics on the following page

I.A.2.  Thatcher's vision: an Europhile vision who calls federalism

In 1988, during her historical speech at the European middle school in Bruges, Margaret Thatcher, as Prime Minister, supports some great ideas on EEC’s future. The first one is to build a strength Europe while maintaining an independence of each member. According to Thatcher : “Europe will be stronger precisely because it has as France, Spain as Spain, Britain as Britain, each with its own customs, traditions and identity.”Her second major idea is to reform the inefficient European policies such as the PAC. In 1984, the iron lady had already shown her dissatisfaction vis-à-vis the PAC: “I want my money back!”. It enabled her to obtain a rebate of the British contribution to the European budget. And at last but not least she wanted to create a European single market in order to help Europe prospering and create new jobs. Thereafter, Tony Blair, Thatcher’s successor, took over this idea. (Le Monde, 2016)

I.A.3.  The exit procedure: The clause 50

UK became member of the ECC(European Union today) in 1973 in order to integrate globalisation. However on 23rdJune 2016 , the British decided mainly through a referendum to put an end to this union. To trigger the exit procedure they need to apply the article 50 of the Lisbon agreement. According this one : “Any member of the EU can decide, in accordance with his own constitutional laws, to quit the EU.” Besides, this article provides for negotiations between the 2 part during 24 months. At the end of this 2 years, if no agreement has been conclude, UK can then be considered as a third country by the EU. According to the Prime minister Theresa May: “ The UK will trigger the article 50 by the end of March 2017”. (BBC, 2016)

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Source: BBC

I.B.        United Kingdom : a segmented country

I.B.1.  A deep segmentation among the British people

On one side, we can notice a clear opposition between the young people and the elderly. The former being for the remain and the latter mainly for the Brexit. On the other side, there is also an intra-regional segmentation. In fact, the rural households and the workers clearly tended to vote for the Brexit unlike the Greater London inhabitants. Beside, social category also plays an important role. For example the business leaders were mainly for the remain. As a consequence, the vote of the brexit has indeed been a generational and cultural vote indicative of the omnipresence of a huge social division among the British society.

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Source : Le Figaro

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Source: BBC

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Source: BBC

I.B.2.  A division among the business leaders

Indeed, we can find a division among the British chief executive officers.(CEO) On one hand business leaders of big firms ,such as Richard Branson whom is the Virgin CEO, voted for the remain. According to them, international exchanges are vital for the British economy. In fact, so far the UK conducted 45% of its exports towards EU.

On the other hand, the bosses who voted to leave are in general small and medium sized businesses ’CEOs and some MNF’s CEOs. As witnessed by the open letter published in June, where they affirm endorsing Brexit. In their view Brexit can freed them from some rules, laws and European policies imposed by the European Parliament. This could allows to increase the competitiveness of the British products. ( Mens, 2016a)

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