The economic side of Brexit

Source: actionforex

The historical relevance of Brexit

Brexit unquestionably represents a turning point in the history of the European Union, and possibly of the contemporary world as well. The result of the United Kingdom’s EU membership referendum is indeed a very evident proof of the increasing feeling of Euroscepticism by the citizens, which has significantly grown in several nations over the last years, and that requires appropriate and tangible responses both at the national and European level.

Results of the UK European Union membership referendum by Parliament constituency. Source: Wikipedia, "2016 United Kingdom European Union membership referendum".

The United Kingdom joined the European Economic Community, having then evolved into the European Union with the Treaty of Maastricht, in 1973, after years of hostility with France, which was reluctant to accept a member state that was considered too close to the interests of the U.S.A.. Its permanence was always marked by a certain degree of distrust against the European institutions, reaching its peak during the early phases of Margaret Thatcher’s government, and by the refusal to take part in some fundamental steps of European integration, such as the Schengen Agreement and the adoption of a common currency. The British government’s decision to announce a referendum for the country’s membership hence came after decades of proposals to renegotiate its position in the Union, and also following the results of the general election of 2015, where the Conservative Party earned the majority and where a newly predominant role was assumed by the United Kingdom Independence Party as well.

The necessity to ensure a smooth transition to national independence has led the European and

British institutions to engage in complex and long-lasting negotiations, resulting in a withdrawal agreement which was ratified by the European Parliament in January 2020. Despite the detailed provisions that this document encompasses, analysts and experts in different fields have expressed their concerns about the eventual political, economic and social repercussions of this historical event, which will likely shift the equilibrium of the Union towards a new direction.

The economic impact of the withdrawal

The effects of Brexit on the ec