The UK leaves the European Union
Supporters hold a banners during a pro-EU rally in Trafalgar Square in London, after some of the pro-EU events organized in the aftermath of last week’s historic referendum have been cancelled at short notice over safety concerns, Tuesday, June 28, 2016. (Ian West/PA via AP)
The United Kingdom left the European Union on June 23 when citizens officially voted on a referendum resulting in the resignation of Britain’s prime minister, global economic effects and reconsiderations from additional countries in the EU on whether or not to stay in.
Since the decision, Britain has faced several new developments, both political and economic.
The following Friday, Prime Minister David Cameron, who lead the campaign to stay in the EU, announced he would be leaving his position in October. In a press conference held in London, Cameron said that he felt the country should have a leader that supported the people.
Ratings agency Standard & Poor’s strips the UK of top AAA credit rating following vote to leave the EU pic.twitter.com/XRNbcnCpbZ
— Sky News (@SkyNews) June 27, 2016
“I will do everything I can as prime minister to steady the ship over the coming weeks and months, but I do not think it would be right for me to try to be the captain that steers our country to its next destination,” Cameron said.
In addition to the Prime Minister resigning, Britain’s economy has had a significant change.
According to the Associated Press, the stock market went down 7.7 percent shortly after announcement was made.
The European Central Bank said it would be monitoring financial markets in the weeks to come, ready to provide any additional liquidity.
According to ABC News, the Bank of England’s Governor, Mark Carney, released a statement on the issue:
“Some market and economic volatility can be expected as this process unfolds. But we are well prepared for this,” Carney said
— CCTVNEWS (@cctvnews) June 28, 2016
There have been significant changes thus far in the economy that have not been positive. The British pound fell to a three-decade low against the U.S. dollar, its biggest one-day fall on record, while the euro slipped three percent.
What was once one of the greater economies in Europe is now likely to suffer a small recession in the months to come. However, the impact this situation has had on the global economy is still uncertain.
The voter turnout for the referendum was 72.2 percent, with 51.9 percent being on the “Leave” side and 48.1 percent on the “Remain” side.
Former mayor of London, Boris Johnson, supported the Independence Party and was a big advocate for the leave. He is also a consideration for the replacement of the current Prime Minister.
In the aftermath of the Leave other countries in the EU have also considered their own referendum and some have refused. The biggest concern about this whole thing is the future of the European Union.
Angela Merkel regrets but accepts the decision of the UK to leave the EU https://t.co/rVSkyo0bmh
— Sky News (@SkyNews) June 28, 2016
According to American Funds, Euro Pacific Growth Fund portfolio manager, Matt Brett, released a statement regarding his worries for the remaining countries in the EU.
“This isn’t just about the U.K. leaving. Ultimately, the U.K. should be able to devalue its currency enough into a competitive position. The bigger question is how the other 27 EU members deal with their problems now,” Brett said.
However, those who support the leave have acknowledged their feeling on the issue, claiming that there has been some overreaction on the economic spectrum.
Britain is the first country to leave the EU, and as the situation progresses, only time will tell how it will continues to effect the UK, Europe and the world.