What is the European Union
The EU is a unique economic and political partnership
between 28 European countries that together cover much
of the continent.
Road to the European Union
• After seen the horror of WWII the European Community
needed an alliance.
• In 1951 European Coal and Steel Community was formed by 6
• In 1957 European Economic Community was formed.
• 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 Eurozone.
Purpose of EU
The fundamental purposes of the European Union are to
promote greater social, political and economic harmony
among the nations of Western Europe.
Now the European Union is an economic and
political union of:
• 28 member countries.
• With the population of approximately 507.4 million people.
• With an economy that generates a nominal GDP of about €14.3
trillion (US$18.5 trillion in 2014)
What is Brexit
Brexit is an abbreviation of "British exit" that refers to the possibility of
Britain's withdrawal from the European Union.
Reasons that leads to Brexit
• The interference of European Union.
• The UK tax payers money goes directly into European
Union, £ 14.5 billion a year.
• The European Union regulations cost UK businesses
over £ 600 million every week.
What are the impacts of Brexit ?
• One in every ten UK jobs are linked to the trade with the EU. Therefore
Brexit might affect there jobs directly or indirectly.
• 61% of UK small business exports go to the EU. Being able to trade freely
with EU countries, with no tariffs or barriers, helps small businesses in
the UK grow and create jobs. This might be affected.
• Impact of Brexit could lead into lower GDP of 2.2% in 2030 or hopefully
lead into higher GDP of 1.6%.
• Leaving the EU could lead into lower trade between the EU and UK
• Leaving the EU could also affect Foreign Direct Investment, immigration
and economic regulation in UK.
Impact on currency
Sterling (BoE) index
• Investors are worried about the possible
economic impact of a decision to leave the EU.
• The Sterling Pound is falling against all major
• It was down by 2% against US Dollar and hit the
lowest since 2009.
• It’s dropped 1.3% lower against the Euro.
Impact on Trade
• Trading freely with the EU allows UK businesses to grow. Being able to trade freely with the EU
helps UK businesses grow and create jobs . Therefore, leaving EU might put all this at risk.
• 4 out of 5 Small Business back the EU. Four out of five UK small businesses say access to EU
markets is important to their future growth, in case of UK leaving EU, these small business might
• 70% of major business expect damage if UK leave the EU. A new survey shows 70% of FTSE 350
firms, some of the UK’s largest companies, think they’ll be hit if UK leaves the EU.
• TTIP (Transatlantic Trade and Investment Partnership) deal between US and EU will not benefit
UK if they leave EU.
• CETA (The Comprehensive Economic and Trade Agreement) between Canada and EU will also not
benefit UK if Brexit happens.
Impact on Society
• Being in European Union means lower prices for UK families - because it's
cheaper to trade and there’s more choice. If UK left the EU, the cost of
imports could rise by at least £11 billion (sources: HMRC & WTO) – leaving
UK families out of pocket as prices rise.
• Independent experts estimate the benefits of being in the EU are worth
£3,000 a year to the average UK household - due to lower prices and more
jobs, trade and investment. This will be all lost if UK leave the EU.
Should the UK remain a member of
the EU or leave the EU?
And I say UK should remain
a member of the EU.