European Union ; Brexit and India
What is the European Union?
The European Union is the union of 28 countries who are politically and economically related. It is referred to as EU. The following 28 countries were included in the European Union.
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom.
Why was EU established?
Immediately after World War II, the peace agreement was made for the war-ridden countries. Initially, after five long years of World War II since 1939 to 1945, France and Germany came to a mutual agreement that they would not sort any war against each other. Thereby six other countries – Belgium, France, West Germany, Italy, Luxembourg, and Netherlands further joined the union. Thus now there are 28 countries in the European Union.
Thus now the European Union depicted a single market where there is a free movement in trade and commerce as well as people ultimately portraying as a single country. The European Union uses Euro as their currency.
The following are the 19 countries which use the currency as Euro
1) Austria 2) Belgium 3) Cyprus 4) Estonia 5) Finland 6) France 7) Germany 8) Greece 9) Ireland10) Italy 11) Latvia 12) Lithuania 13) Luxembourg 14) Malta 15) Netherlands 16) Portugal 17) Slovakia 18) Slovenia 19) Spain.
The European Union has its own parliament, includes prior set rules on the environment, transport, consumer rights and even mobile charges.
How does EU work?
EU was originated from European Coal and Steel Community (ECS) and European Economic Community (EEC) founded by six countries.
EU consists of seven decision making bodies or the Institutions of the European Union that include the European Council, the Council of European Union, the European Parliament, the court of Justice of the European Union, the European Central Bank and the European Court of Auditors.
Where and how does EU spend money?
EU has created a Trading Bloc where there is a free unhindered movement of goods and services within a single market. Thereby it concentrates on reduction in regional disparities, conserves and preserve the environment, encourages human rights and education.
Britain is the biggest trading partner of EU. EU spends its funds for farmers, employment in UK, redevelopment and Education research. Thus it also provides costless travel, cheap mobile data roaming, as well as increased the water standards in Europe as a whole.
But with the increase in subsidies for farmers, there was an increase in the supply of the crops. Thus Critic analyzed the situation that EU has utilized major power from the UK. Thus Britain found the policies implemented, was much costlier and as well felt that it could sustain without them as well. Britain would be able to sign a deal with developing economies like India and China. Critics even expressed the fact that EU spends funds of taxpayers on excessive bureaucracy and administration.
What do you mean by Brexit?
The referendum was made with the outcome of the majority voters on deciding “Whether the UK Should Remain in the European Union or Not”. On Thursday, June 23rd 2016, the turn out of the total voters was 71.8% with more than 30 million voters. The firm agreement to leave won by 52% to 48%.
Thus Britain Had To Make An Exit- Brexit.
What are Soft Brexit and Hard Brexit?
There are various speculations as for how does the UK maintain the relationship with EU after their exit. Post-EU-arrangements has been roughly categorized into “Hard” or “Soft” Brexit.
In this form, UK will exit from EU but they try to remain in close to the arrangements which were made a prior exit.
The UK would no longer be a member of Union and would not even have a seat in European Council.
The pass porting rights would not be much affected. This means” four freedoms” of movement of goods capital and people would be existing.
Thus Soft Brexit is the deal where in the UK would observe four freedoms, though it does belong to the EU. Thereby there would be free access for European Nationals to work and settle in the UK
In Hard Brexit, UK will exit, and arrangement would be made where UK will be a single market and have full access on customs of EU.
Moreover Britain would have a complete control over its borders, agreeing upon new trades as well apply new laws within its territory.
Theresa May, the Prime Minister of Britain
Theresa May, the Prime Minister of Britain, after David Cameroon stepped down, took a firm decision about Brexit, took a stand for a “Hard Brexit” that would take Britain out of the European Union’s single market.
Thereby she had publicly made an announcement, “"We are not leaving the European Union only to give up control of immigration again. And we are not leaving only to return to the jurisdiction of the European Court of Justice,"
It also elevates doubts upon the forthcoming of past sporting, which permits financial service providers to trade across the EU without much hindrance.
But there exists another issue; the government’s plan to start the formal process for Brexit is by the end of March.
It also shows Britain might make an exit from EU before 2019, but banks should have a prior plan for further sustenance ahead. Thus, the latest warning from Anthony Browne, chief executive of the British Bankers’ Association, that banks might initiate migrating jobs to Europe early next year.
Moreover, Migration is another prevailing issue wherein the Brexiteers want to introduce work permits and visa for those who are Britain nationals
When will Britain Actually Leave?
In order to leave EU should invoke agreement called Article 50 of the Lisbon Treaty, which states that both sides require two years to slip completely and be in terms of the agreement.
As per latest news, Theresa May claims that she intends the process by the end of March. Thus the UK would be completely separated by summer 2019, with an agreement of certain negotiations.
There is also a proposition made that they would introduce the Great Repeal Bill, which will end the dominance of EU Law in the UK.
What would be the effect of Brexit upon the relation with emerging markets in India?
The reverberation caused by the political- financial consequences of Brexit will have an impact on Global Economy.
British has already maintained amicable relation in economic, political and cultural ties.
Firstly, financial experts claim to say that there was 8% decline of Pound against Indian Rupee. The fall in currency would give a positive impact on Indian citizens in real estate, less cost travel and less expensive study.
Secondly, As Britain was a part of EU so there was a hindrance making a free trade agreement. Thus post-Brexit, India could make new trade policy with Britain separately.
Thirdly, the roller coaster financial- political stability of Britain has given space for Indian Stock Market to destine a Foreign Investment.
Fourth, with Brexit new policies of Immigration would set up. Thus give ample space for high-skilled professionals in the UK.
The compilation awaits for the invaluable inputs, suggestions, most desired advice since I believe that it would strengthen the article much more.