WASHINGTON, June 24, 2016 – British voters sent shock waves across the country when 51.9 percent of European voters decided in favor of the “Brexit”, or to leave the European Union. Britain is the world’s fifth largest economy and they had found that Brussels, as the seat of European Union is generally called, was making more and more decisions for Britain that nationals felt were far overreaching and detrimental to Britain.
Many are seeing the vote for Brexit is a vote against the big merchant banks, open borders leading to eroding economies and Islamization of their country, and globalization. These are many of the same issues that have led to the rise of Americans who are embracing the message of Donald Trump for smaller government, less government influence, and a say as to who will live, work, profit in their country.
Interviews with voters echoed concerns that as a member of the EU, Britain was having less and less say over issues important to their sovereignty, EU treaties were giving the central EU bureau in Brussels the power of decisions that affects Britain such as competition policy, agriculture, and copyright and patent law without considering the position of Britain nationals.
Rules from the ridiculous, you can’t recycle a teabag, or that children under eight cannot blow up balloons, to the concerns of Justice Minister Michael Gove, the Brexit camp’s loudest voice, that the EU was demanding more control over Britain’s banks and financial institutions as well as creating overburdensome regulations that cost the British economy “£600 million every week” ($880 million)”
And while the argument for or against Brexit mostly focuses on economics, the vote for Brexit is also influenced by immigration as EU law guarantees that citizens of one EU country have the right to travel, live, and take jobs in other EU countries.
Economic pundits are asking if Britain will adopt Margaret Thatcher like policies and tax cuts to recover their economy and stability. Others saying “Margaret Thatcher is looking down and smiling”.
Global watchers are also wondering if other members of the EU, such as France who is suffering under the burden of unchecked immigration, will also take steps to leave the EU, signaling the end of the governing body.
To many Britons, the European Union was overriding national laws they felt hindered Britain’s sovereignty and growth.
Globally financial markets were hit hard by the “Brexit” with the pound falling to its lowest level since 1985 creating strong anxiety in the global economy, with investors struggling to figure out what the global impact will be.
This decision goes against what President Obama was hoping for and leaves our next president with a new economic struggle as concerns over multinational banks located in Britain moving jobs to other financial centers such as those in Paris, Frankfurt, Dublin and Amsterdam.
There is also concern over American companies leaving Britain for what they see as more financially stable waters.
Many experts assume Brussels will move quickly to restrict trading of euro-denominated assets — a major business for Britain.
Donald Trump, in Scotland for business reasons, said in response to the Brexit vote, that it was the result of people’s anger over the lack of jobs, chastising President Obama for going to Britain to campaign for the EU to not Brexit, which was not warmly received by all the British people.
“Come November, the American people will have the chance to re-declare their independence. Americans will have a chance to vote for trade, immigration and foreign policies that put our citizens first,” he said. “They will have the chance to reject today’s rule by the global elite, and to embrace real change that delivers a government of, by and for the people.” Investors were expecting the U.K. to remain in the European Union, which has so far created some panic throughout the word.
Energy giant BP has stated that they are projecting job losses in London releasing a statement following the “Brexit” vote:
“it is far too early to understand the detailed implications of this decision and uncertainty is never helpful for a business such as ours. However, we do not currently expect it to have a significant impact on BP’s business or investments in the UK and Continental Europe, nor on the location of our HQ or our staff.”
If predictions on the Brexit impacts U.S. economy come true, the global economy will play a larger part in the 2016 election as increasing fears of a recession in the U.S. would be a huge boost for Trump, allowing him to attack Obama and Clinton for destroying the U.S. economy.
The “Brexit” decision is now forcing American companies to decide whether to leave the U.K. Obama has warned the U.K. of not reaching a new trade deal with the country if it left the European deal. After the decision to leave became official, U.K. Prime Minister David Cameron announced his resignation saying he will step down after voters moved to withdraw from the European Union.
“I do not think it would be right for me to be the captain that steers our country to its next destination,” he told reporters outside his Downing Street office, adding it was “not a decision I’ve taken lightly.”
Former London mayor and “Leave” campaigner Boris Johnson, who has been tapped as a potential successor, praised the decision to “take back control” from Brussels, calling it a “glorious” opportunity.
“The British people have spoken up for democracy in Britain and in Europe and I think we can be very proud,” he said. “We can find our voice in the world again.