Question

The European Union uses the single currency, Euro, in member countries. However, United Kingdom (Britain) has decided to exit the European Union. This is has been termed as the Brexit. Why, in your opinion, would a country such as Britain wants to exit the European Union? Is this a good or bad move? Explain your answer.

Answer 1

Britain had multiple apprehension with regards to it's involvement as the member of European union, autonomy of the monetary policy is one of them Britai wasn't pleased with the ECB monetary policy during the time of 2008 recession when ECB adopted a contractionary policy at the later periodnof crisis, also other major concern was with regards to the immigrant whose influx increased into Britain. This has led to higher social security pressure upon Britain's budget as well as increased unemployment .

Post Brexit outcome is uncertain and depends upon whether Brexit is with deal or no deal , expectation in case of no deal Brexit would a bad one for Britain where it will lose a unhindered access to it's most important market though will get autonomy but will be deterimental to several of its large industries like automobiles, steel sector. While the Brexit with deal will help cover up those losses in terms of market access as well as help retaining autonomy.