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BREXIT

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effect of brexit on EU.

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BREXIT

  1. 1. Submitted By: - Nidhi Sharma EFFECT OF BREXIT ON EUROPEAN ECONOMY
  2. 2. Meaning As the word Suggest BREXIT= “Britain” and “Exit”. Withdrawal of the United Kingdom from the European Union. The UK electorate will address the question again on June 23, 2016, in a referendum on the country's membership.
  3. 3. HISTORY  The EU is a unique economic and political partnership between 28 European countries that together cover much of the continent.  In 1973 the UK joined to the European Economic Community.  In 1993 the European Union was formed.  In 2002 the Euro became the currency of Euro zone.  The fundamental purposes of the European Union are to promote greater social, political and economic harmony among the nations of Western Europe.
  4. 4. REASONS FOR BREXIT FROM EU Britain wants reforms in European union.  Link between immigration and EU membership.  The UK tax payers money goes directly into European union.  The relative health of the UK economy.  The European union regulation cost UK businesses over 600 million euro every week.  Britain’s loss of full authority over its economic policies and regulations .
  5. 5. IMPACT OF BREXIT  OVERALL ECONOMIC IMPACT  BUSINESS AND FINANCIAL SERVICES .  EMPLOYMENT.  AGRICULTURE.  OTHER IMPACTS  ENERGY AND CLIMATE CHANGE.  TRANSPORT.  HUMAN RIGHTS .  SOCIAL SECURITY.  HIGHER EDUCATION
  6. 6. Impact On India If they Exit  SENSEX AND NIFTY WILL TUMBLE IN THE SHORT-RUN.  INDIA IS PRESENTLY THE SECOND BIGGEST SOURCE OF FDI (FOREIGN DIRECT INVESTMENT) FOR GREAT BRITAIN. BUT, IF BRITAIN EXITS THE EU, IT WILL NOT BE AS ATTRACTIVE A DESTINATION FOR INDIAN FDI AS BEFORE.  INFORMATION TECHNOLOGY .  AUTO COMPONENTS.  PHARMACEUTICAL.  GARMENT .
  7. 7. Indian Companies to look out for on the event of Brexit.Company Impact of Brexit Tata Steel Has turnover more than GBP 2 billion from UK Steel Plants. Has 12 production plants spread across UK. Tata Motors (Jaguar &Land Rover) Jaguar and land Rover are UK based and are UK’s largest automotive manufacturers Motherson Sumi Have major Automotive Clients in Europe and derives more than half of its income from Europe Kitex Garments Kitex Garments client Mothercare derives 20% of revenue from UK Tata Consultancy Services its Europe operation grew by 12.9% and UK by 8.23%. Europe and UK together are major contributors to its revenue. Bharat Forge Caters European automotive clients, Has 3 plants in Germany and 1 in UK Tech Mahindra Has Banking and Financial Clients from UK, and acquired UK based firm Fintech Bharat Airtel Has been rated by Grant Thornton as fastest growing Indian company in UK Marksans Pharma UK and Europe market account for 60% of their revenue. Emcure Pharma Has acquired UK based Tillomed Laboratories and still expanding
  8. 8. Impact On Global Economy If they Exit  Global financial market volatility can be readily expected. Markets across the world will tank.  The pound will depreciate against most major economies.  Brexit could reduce economic growth by up to 5.6 percent over the next three years
  9. 9. What If…. Britain Exits Or Stays  If Britain remain with EU Real GDP growth of 2.3% per annum over the period to 2030.  If Britain leave Stock market falls, Debt interest rate rise.  Brexit could cost UK economy 100 billion Euro which is equivalent to 5% of GDP by 2020.  9,50,000 Job losses and Unemployment would increase by around 5,00,000.
  10. 10. CONCLUSION  we come to the conclusion that a Brexit would have damaging effects on the economic development in the entire EU. The economic consequences of leaving the EU will depend on what policies the UK adopt following brexit  The much discussed ARTICLE 50 of the EU charter states that once a member nation chooses to “activate” it, that nation shall have no more than 24 months to finalize every single detail revolving its exit from the EU.  effectively announced that the UK will be out of its limited EU partnership/presence before the end of March 2019.

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