Brexit. Which potential influences does it have for the British Economy?

Seminar paper from the year 2018 in the subject Politics - International Politics - Topic: Globalization, Political Economics, grade: 1,7, University of Applied Sciences Essen, language: English, abstract: It seems that if the Brexit will come, there can occur a lot of Problems for the British population and economy, but also on the economy and population of other EU member States, because of different regulation consequences which will come with the Brexit. The question is how far the Brexit can influence the british economy positively or negatively. Another question is what models the british population can use after the potential Brexit to prevent a negative outcome. The aim of this work will therefore be to identify the potential impact of the Brexit on the UK economy, as well as on the EU.

On 26 June 2016 for the first time in the history of European politics, direct democracy was applied. The British population decided directly and not through a parliamentary representation in a referendum, to withdraw from the European Union. The British EU cepticism rose with the debt crisis in the euro zone that had existed in the years prior to the referendum. At the end of the referendum, a majority of 51.9% of the British population was against remaining in the EU. The referendum had a turnout of 72%, with Scotland and Northern Ireland showing a majority rejection of the resignation, while Wales and England spoke in favour. Never before in the history of the EU, a country has left the Confederation of States which makes the economic consequences of the so-called Brexit for the British or European economy uncertain, because it is unclear what the relations of the United Kingdom and the European Union will be like after the withdrawal.

The British government had until March 2017 after the referendum to announce an official exit notice, and Theresa May submitted her country's official resignation to the EU on 29 March. Future economic and political rules between the EU and Britain will be negotiated under Article 50 of the Lisbon Treaty. It is important that if the EU and Britain cannot agree on the different points within two years, the EU treaties will beco-me invalid for the United Kingdom. Article 50 has never been applied because no EU member state has ever wanted to leave the alliance. For this reason, the outcome of the negotiations is currently uncertain.