Britain loses control of brexit why did Britain brexit
4hw.com.cn: brexit has been a hot topic in the past two years. The latest news is that Britain has lost control of brexit. Why Should Britain get rid of the EU? Is it good for Britain to get rid of the EU? Let's analyze it in depth!
Why did Britain leave Europe?
1. 'isolationism' has a far-reaching impact and does not like immigrants to encroach on welfare
People familiar with European history know that the British have a sense of superiority in the face of the European continent for a long time, and then derive a tendency of 'glorious isolation'. The popular explanation is: no matter how many countries in the European continent fight, as long as you maintain a balance of power and 'fight without breaking', then I can live my own happy life in Britain.
This time the British chose to leave Europe, which undoubtedly indicates that the idea of 'isolationism' has once again become the mainstream. At present, the UK's economic situation is better than that of the EU as a whole, and its independence from the monetary system outside the eurozone has prevented the transmission of the EU crisis, which further contributes to the British people's sense of superiority.
In the view of those who advocate Britain's "brexit", the EU has dragged down Britain's economic performance. Immigrants from the European Union also encroached on the welfare of the British.
The immigration issue can be regarded as the most convincing reason for the "brexitists" in Britain. Since 2000 (during which EU member states have increased rapidly), immigrants from other EU countries have begun to enter the UK in large numbers, because the UK economy is more dynamic and has more employment opportunities than the EU in the same period.
However, with more and more immigrants from the EU, there is more opposition to immigration in Britain. In the view of these Britons, immigrants from the EU occupy their own employment opportunities, and because most of them are low skilled workers, the British government even needs to pay a lot of benefits for this.
However, despite the British people's anxiety about immigration, the International Monetary Fund (IMF) recently released a report on the impact of brexit, which believes that most EU immigrants are low skilled workers and do jobs that the British are unwilling to do. In fact, they have helped the UK improve labor productivity. At the same time, the IMF report believes that there is no evidence that EU immigration has led to the reduction of British jobs.
2. The British are very aggrieved that they paid 'part money' to the EU but didn't get any benefits
In addition to the issue of immigration, the 'money' contributed by Britain to the EU every year has also frequently aroused domestic discontent in Britain.
According to the data in the report on brexit recently released by the IMF, in 2014, the UK made a net contribution of 7 billion euros to the EU budget, making it the third largest net contributor to the EU (only second to Germany and France).
However, after paying so much money, the British believe that they have not been able to obtain the corresponding level of subsidies from the EU. In 2014, Britain's income from the EU was only comparable to that of Belgium and Greece, lower than that of Germany, France, Italy, Spain, Poland and other countries.
However, the IMF disagrees with this view. In the brexit report issued by the IMF on June 17, the IMF believes that compared with other EU countries, the agricultural sector in the UK accounts for a small proportion of GDP, and a large number of EU subsidies have entered the agricultural sectors of Member States, which is the main reason why the UK receives less subsidies from the EU.
The IMF report also said that if combined with the size of its economy, in fact, the proportion of Britain's contribution to the EU in its GDP is only about 0.3%, lower than that of Austria, Germany, France, Denmark and other countries.
3. The EU's complex regulatory measures cost the UK $47 billion
In addition to the above two points, the unified regulatory measures formulated by the EU also dissatisfied Britain. According to a report released in 2015 by open Europe, a British think tank studying EU issues, the EU's heavy regulatory regulations cost the UK 33.3 billion pounds (about US $47 billion) a year.
According to the analysis of open Europe, in the best case, the UK will save the above expenses due to 'brexit', so as to offset the losses in trade and maintain the growth of UK GDP.
In addition, Britain can develop trade relations with other emerging economies more freely, so as to stimulate the development of domestic industries without being constrained by the overall trade policy of the EU.
However, open Europe also acknowledges that in the worst case, the more than 30 billion pounds spent by the UK on EU regulation each year may not be saved.
4. Britain's trade dependence on the EU does seem to be decreasing
According to the report released by the IMF on June 17, the British economy is in the stage of gradual recovery in recent years, and its dependence on the EU is also declining, which also gives the 'brexitists' the strength to cry out.
From the data, Britain's dependence on the EU has indeed decreased. Considering the export direction alone, the proportion of exports within the UK and the EU has decreased from 55% in 1999 to 45% in 2015.
However, if the EU is still Britain's first export destination in terms of total volume, it is unlikely that this situation will reverse in the short term. According to the official data of the British Bureau of statistics, the income of British investment in the EU is relatively stable, while the income of investment in other countries has declined significantly. This has become one of the reasons for the "stay in Europe faction".
The impact of brexit
After brexit, the British economy faced Waterloo
Britain's decision to formally withdraw from Europe in this referendum is most concerned about Britain's economic prospects.
In the report on brexit previously released by the IMF, it pointed out the current situation of the UK economy:
On the one hand, everything is getting better, the GDP and employment rate have increased steadily, and the employment rate has reached an all-time high of 84%;
But on the other hand, everything is like a mirror in water. The fiscal deficit is expanding, the improvement of industrial productivity is slow, the mortgage rate of residents is rising, and the income level is likely to fail to keep up with the changes of house prices and interest rates.
Obviously, Britain's formal choice of brexit will undoubtedly bring great uncertainty to Britain's fledgling economy.
In fact, in the view of major global mainstream economic research institutions, brexit will have a huge impact on the British economy.
In the short term, no institution believes that the UK will maintain GDP growth after brexit; In the long run, most institutions still believe that the UK economy will enter a downward channel.
In other words, although the British firmly choose to 'leave' this time. But the hidden worries and impact on the British economy have just begun.