Unveiling the Economic Impact of Ram Mandir Inauguration.

BREXIT- The Messiest Divorce in the History of the World

                          4 years, 3 Prime Ministers, 2 Giant Economies, 1 Brexit

            

After applying to be a part of the then European Economic Committee and being continually vetoed against for nearly a decade, in 1973 the country of Great Britain became a part of what is today known as the European Union, a behemoth of an economic organization comprising of 28 countries both developed and developing, on the European Continent.
By 2016 UK made up over 50% of EU's imports and exports and contributed to around 10 Billion Euros to its budget. But a seed that was planted way back in 1975 sprouted once again in the March of 2016 and today has become a gargantuan tree threatening to tear through the very roof of the British Economy, the Brexit.

But like a tree, it is taking it’s time, slowly, steadily, chipping away at the foundations one brick at a time.

The entire world, including the very Prime Minister of England, was shocked when the citizens of the UK voted in a referendum for their country to leave the European Union. Shortly after, David Cameron resigned from his post, setting off a political and economic downward spiral for the country. The immediate effect comprised of the depreciation of the Pound sterling, disinvestment, offshoring, slowdown in trading activities and a delivered a significant blow to the country’s GDP. The then Home Secretary Theresa May, upon the resignation of her predecessor, took over his position, putting Brexit on hold for some months, soon initiating the proceedings of Brexit according to the directions of the Article 50.

The Article 50 is, basically, a set of instructions by the EU for any country that wishes to withdraw itself from the bloc. It established the deadline for a two-year process of Brexit, which was back then the 29^th March of 2019. As of March, 2017, the British Parliament had a lot of issues, perspectives and consequences of the Brexit to evaluate and act upon. In a speech, Theresa May, cited the various conflicts that had brought about the decision of the departure from EU, stating the need to expand UK’s trade policies, addressing the excessive inflow of immigrants and the disputed territory of Gibraltar being some amongst them.  Over the course of next two years, the internal atmosphere within the UK was nothing short of tumultuous. A crisis of food shortage had befallen the country, the unemployment rates had increased, there was a Scottish insurgency for independence, there was an issue with the Irish borders, snap elections were held in June 2017, terrorist attacks had taken place in Manchester and a deep political unrest was heavy in the air. And then there was the insistence on a hard Brexit by the Conservatives.

A hard Brexit would mean absolute withdrawal from the EU’s trade policies for the member countries. The UK would have complete freedom in drafting new trade deals, however it would be a long and arduous process. In the period of hiatus, the UK would have to curtail to the trade policies of the World Trade Organization, which would come at a high cost to the British economy in the short-term, if not in the long-term as well. The economists of the country and of the world, opposing the hard Brexit, recommended the soft Brexit which would enable UK to stay a part of EU’s single market, easing the process of withdrawal, softening the blow on the economy. But the proposed deals by Theresa May, never say the light of day, as they were rejected by the Parliament multiple times, unable to reach a definitive decision that was sans any controversies or consequences, which was an impossible expectation at this point. Due to her alleged inability to handle the Brexit negotiations satisfactorily, heavy criticism of her actions and unpopular public opinion leading to May’s defeat in the House of Commons resulted in her resignation on 27^th March 2019 and the appointment of Boris Johnson.

The current Prime Minister of the United Kingdom, Boris Johnson was quick to bring about stability that was much needed after the resignation of May and extend the deadline to October 2019. But his recent attempts at securing a withdrawal agreement, quite like May’s, could not get past the Parliament due to the Irish backstop controversy and a lack of majority and the deadline was furthermore delayed to 31^st of January, 2020. Now with a questionable Trumpist propaganda and a hope of a no-deal Brexit that will land the British economy in unsafe waters, Johnson is facing the threat of looming general elections taking place in December. The impact they might have on the Brexit proceedings is absolutely unpredictable as of now.

As the deadline approaches, the people of the world hold their breath on Brexit, wondering if Johnson will be the last straw, bringing it collapsing down on the UK or will the mighty Great Britain endure through another day, another deadline, on the hopes of delaying the inevitable.

-Ketaki Limaye TYBA

 Isha Gokhale TYBA