Britain's historic divorce from the EU
BREXIT What is Brexit? -Brexit is a combination of the words, ‘Britain’ and ‘exit’ -It refers to the EU referendum, a vote that took place on June 23, 2016 to decide Britain’s membership with the European Union -The official question voters were asked was: ‘Should the United Kingdom remain a member of the European Union or leave the European Union?’ The EU Referendum Verdict Factors responsible for Brexit -High unemployment -Increased migration -Threat of terrorism -2008 financial cash -High EU membership fees Immediate impacts of Brexit - Fall in bond markets - Crude oil tumbled to 5% - Gold jumped to around 5% -Sharp fall in Pound to $1.3229 - High volatility in JPY and EUR -Major equity indices lost 2-10% Why India will survive Brexit? -Lower crude oil prices -Enviable macro environment -Overhauling in banking sector -Favourable monsoon forecasts -Stable government focussed on reforms Aftermath of Brexit - Divide in EU countries - Exports likely to be hit - Second referendum in Scotland - Slower economic growth in long term - Border control issues with Northern Ireland - Increase in populist movements seeking referendums
