Great Britain just made a bold move and cut ties with the European Union and shocked the world in the process. Most people believed it wouldn’t pass, but in a tight vote, it did, and the future of the U.K. will look a lot different than it does today.
As a leader, we want you to be in-the-know about current events, global issues and historical decisions. Here’s a quick update on the six things you should know about Brexit.
The European Union started after World War II to make trade and economic growth more streamlined and efficient in the European region. Today it’s made up of 28 (soon to be 27) member states and oversees legislation, trade and monetary policies (including the euro) in the European region. No member has left the bloc until now.
The Set Up
Prime Minister David Cameron made good on his 2013 campaign promise to allow a vote to satisfy a vocal anti-EU division of the Conservative Party. Although Cameron himself didn’t want to split and was one of the “remains.” Since the vote, Cameron said he would turn in his resignation as Prime Minister.
The actual vote consisted of 17.4 million Britons voting to break ties with the European Union, and 16.1 million who voted to remain. But wait! There are already one million signatures on a petition for a re-vote. Stay tuned. *Side note: Trump was in Scotland this week (promoting a new golf course) and praised the country for their wisdom in making the split. The only problem? Scotland voted to stay in the Union. Cue Scottish snark on Twitter.
The Big Issues
Unhappy in the European Union for years, many Brits wanted out due to bailouts and mediocre economy, but the recent anxiety about the refugee crisis—and the potential to be overrun—is what seemed to drive the passion for a permanent split with many Great Britain voters. In other words, when things go bad–they go bad for the entire Union–and Britain is one of the wealthiest countries so they carried more of the financial burden.
The Immediate Results
Many global markets took a dive, and the bottom dropped out of the British pound as it hit its lowest level since 1985.
It’s unknown how this dramatic split will change Great Britain’s economy and the global market. Much of the future depends on the negotiations between Great Britain and the EU and nothing will likely be finalized for another two years.