A question of unity in Europe: What is this Brexit all about and why is it important?

Thursday is an important day for Europe, and quite likely for the rest of the world. On 23 June, Britain, through a referendum, will decide whether it wants to stay or leave the European Union. The term ‘Brexit’ - Britain’s exit from EU — started being the talking point as Britain, in a historic voting, will decide the political and economical fate of the nation. But, before we start talking about why Britain wants to leave the EU, let’s take a look at the history of the European Union and its ties with United Kingdom. What is the European Union? It is a group comprising 28 member states that was formed after the Second World War to create better ties and economic co-operation within the member states, with the hope that better ties and a sense of unity would lower the chances of these countries going to war with each other. Its origins can be traced back to the European Coal and Steel Community (ECSC) and the European Economic Community (EEC), which were formed in 1951 and 1958. After the Maastricht Treaty in 1993, the European Union was finally established. The EU has its own currency (the Euro), its own parliament and its own set of rules covering several areas like environment, transport and consumer rights. It has evolved into a ‘single market’ which allows goods and people to move around freely. Britain’s uneasy ties with EU have a long history The ties between Britain and the EU have been uneasy for a long time now. According to The Economist, only 10 percent of British exports went to the six countries which formed the ECSC. Britain even missed the Messina conference in 1955 which led to the formation of the EEC. Instead, in 1960, Britain persuaded six European countries to form the European Free Trade Association (EFTA). [caption id=“attachment_2845230” align=“alignleft” width=“380”] The Brexit issue may be the key factor deciding the unity in the European Union. AFP[/caption] Another article in Vox says that Britain never accepted the authority of the EU like other member-states. It refused to join the Schengen Area, which eliminates border control and allows more free movement of people and goods and it also refused to accept the common currency. Why does Britain want to leave the EU? This is the million dollar question. Even though Britain has always had a difficult relationship with the EU, the call for Brexit gathered a lot of strength after the 2008 financial meltdown and the Syrian refugee crisis. The Vox article says that the decision of the European Central Bank (ECB) to raise interest rates in 2011 after the global financial meltdown led to a double-dip recession in Europe. Even though Britain does not use the Euro, the ECB’s erroneous decision made it view the EU membership as something dangerous. The EU’s liberal rules on migration have also given Britain all the more reason to go for a Brexit. Even though Britain refused to accept the Schengen agreement, EU law still required member states to admit an unlimited number of migrants from other EU countries. Large-scale migration of labourers from other less affluent EU states like Poland and Portugal to Britain has led to lower wages for the local British citizens. The Syrian refugee crisis only worsens this situation. For example, in February this year, the International Organization for Migration had said that 76,000 people — nearly 2,000 per day — had reached Europe by sea from 1 January till February, a nearly tenfold increase over the same period the year before. Who wants a Brexit and what is their stand? The UK Independence Party, which won the last European elections, wants Britain’s exit from the EU, according to BBC. Moreover, about half of Conservative MPs, many Labour MPs and the Democratic Unionist Party (DUP) are in favour of a Brexit. “They believe Britain is being held back by the EU, which they say imposes too many rules on business and charges billions of pounds a year in membership fees for little in return,” says the article. The pro-Brexit campaign ‘Vote Leave’ has the backing of senior Conservatives and has raised £2.78 million so far. The pro-Brexit leaders also argue that Britain actually pays more to the EU than what they get from it. The BBC article says that only France and Germany contribute more than Britain to the EU. The ‘Vote Leave’ leaders also say that after a Brexit, Britain can negotiate a new relationship with the EU without being bound by EU law, stop sending membership benefits to EU and spend that money on its own economy and re-gain control over areas like employment, law and health. Who is against a Brexit and why? Even though British Prime Minister David Cameron promised to hold a referendum on Brexit if he won the 2015 general election after he faced pressure from pro-Brexit leaders and the growing demand for a Brexit, he is against a Brexit. Instead, he has proposed a deal with the EU which he says will give Britain “special” status within the EU. This deal, if it comes into effect, will impose restrictions on the child benefit and other welfare payments which migrants workers can send back to their home country. Any British money spent on bailing out other member states will also be reimbursed. Britain will also make it clear that it does not want a “closer” union with EU states to form a ‘United States of Europe’. The campaign against a Brexit is called ‘Britain Stronger in Europe’ and has raised £6.88 million so far. The Labour Party in Britain and other countries like US, France and Germany want Britain to stay in the EU. Big businesses also want Britain to stay in the EU as that makes it easier for them to move money, people and goods around the world. The leaders against a Brexit argue that if Britain stays, it can avoid tariffs and red tape and obtain better trade terms because of EU’s huge size. The EU also collapses 28 national standards in Britain into one European standards, reducing red tape and benefiting businesses. The leaders also say that a Brexit does not necessarily mean reduced immigration because countries outside the EU which trade with the EU have higher rates of immigration. What happens if Britain leaves or stays? One of the most obvious effects of a Brexit will be that it will encourage other member states of the EU to leave it, thus weakening the idea of a unified Europe. If a Brexit actually happens, an independent Britain can negotiate a deal with the EU which grants British businesses the same benefits which they receive now, according to Vox. Norway (not an EU member state) has the same kind of deal with the EU.

However, whether the EU itself is in the mood for such a deal with Britain after the Brexit is another matter altogether. Even if a Brexit happens, the EU and Britain will have to negotiate over the terms of the Brexit and they would have a two-year window to arrive at an agreement. Moreover, a Brexit will have big economic implications. The British economy could be reduced to be between 3.8 and 7.5 percent smaller by 2030, depending on how well the negotiations go. Even if Britain stays, that does not mean things will remain exactly the same. If the deal — with which Cameron says will come into effect if Britain stays — actually comes into effect, Britain will have more autonomy than before. However, there are some critics who say that this deal will not make much difference to Britain.