Britain left the world, including its own prime minister in shock after it decided to leave the European Union.
David Cameron has stepped down as the prime minister of Britain after a moving address to the nation. As speculated, many believed that Brexit could prove to be a fatal blow to his government. He tried his best to convince the people to vote against Brexit, for the safeguard of Britain’s political and economic interests. He was particularly worried that Britain might fall prey to recession, if it withdraws its membership from the EU. Camerons worst fears may prove true as Britain starts to face the music of its decision to file for a divorce from the EU.
Not a day has passed since the poll results and Britain has already sent shock-waves across the world. In the wake of the historic referendum, investors are pulling out money from the UK and the pound has dropped to a 31-year record low. So much has happened so quickly that investors are getting concerned and investing in other markets as a result. Earlier this year, S&P Global Ratings hinted that the U.K. is most likely to lose its AAA credit rating if it chooses to distance itself from the EU. Financial pundits believe that with the lowering worth of pound higher inflation is going to hit the UK. Moreover, interest rates are also expected to rise as a lower pound could trigger inflation. The Bank of England is supposed to keep the inflation at 2% but if prices soar up too quickly the Bank will have no choice but to raise the interest rates to cancel out the effect of inflation.
University towns throughout Britain such as Cambridge and Oxford voted in favour of retaining the member status. UK is the second most popular study destination in the world and receives huge funding from the bloc to fund its research projects. Higher education is one of the main sources of funding for many UK universities. Apart from that, hundreds of the brightest minds in Europe opt for British universities to pursue a career in teaching and research encouraging students from around the world to study in the UK. In the recent past, over a 100 vice-chancellors from the UK signed a letter which read that leaving the EU could undermine our position as a global leader in science and innovation, impoverish our campuses and limit opportunities for British people.
The stats depict the stark differences in the opinion of the youth and those who have retired or are nearing retirement. A clear majority of the younger voters chose to stay in the EU but their voice was overpowered by that of the older voters. People from all over the world took to social media to blame the older voters for failing the youth. Critics raised their voice in support of the dejected youth; even after out- rightly rejecting Brexit, the youth will have to pay the price for the decision made for them by the older lot.
The UK has two years to negotiate the terms of its departure from the EU. Within this time, the UK would aim to ensure that like Norway, it has access to the unified European market as its economic survival depends heavily on it. Furthermore, as Scotland and Ireland voted in favour of staying in the EU the masses are upset over the results. Many believe that if the UK government fails to address the grievances at home chances are that Scotland might make a move for independence. On the other hand, Irish republican political party Sinn Fin has already demanded a poll on Irish unity after the results showed that 56% of people in Northern Ireland voted to stay in the EU. The party committed to the reunification of Ireland and says it has demanded a poll because “British government has forfeited any mandate to represent economic or political interests of people in Northern Ireland”.
With the looming threat of a split up, the historic polls have left Britain in a thick fog of uncertainty which could steer the UK in a direction that Britons would regret in future.