Yesterday, June 23, 2016, the United Kingdom voted whether they want to remain in the European Union. The results are in. It was a tight race, but in the end 51.89% of voters wanted Brexit. Now the UK and the EU has 2 years to prepare.
The polls of the last few months showed „Leave” gain momentum, gradually overtaking, then passing Bremain. Bremain recovered in the last few weeks, but not enough to win the race. In the end,
Bremain got 16,141,241 votes, which is 48.11% of all votes, and
Brexit got 17,410,742 votes, which is 51.89% of all votes.
If a member states indicates they intention to leave the EU, the time designated for preparation is defined in two years, so Brexit cannot actually happen before 2018. As this is the first time a member state ever leaves the EU, these regulations have never been needed before, so right now it is not known how exactly the procedure will go.
Leaving the EU was formerly suggested to take place by 2020. Until then, major legislative changes are to be expected.
Brexit has a vast number of short term and long term impacts on the economy, on the legislation, and on the daily life of people – in and outside the UK as well. GBP continues to fall since the first results started to come in, just like European stocks including DAX and STOXX 600.
Since the United Kingdom itself is a union of countries, now there is a question whether Scotland and Northern Ireland, which voted on Bremain, will launch a referendum on leaving the UK.
Over the next few months and years we will see what effect Brexit has on UK trade, travel, and immigration. It is to be seen what kind of trade deal the UK will now negotiate with the EU. It is also a question how the UK labor market will change, as currently immigrants hold so many jobs and thus significantly contribute to the GDP.
The UK has never been a member of the Schengen zone, but travel and immigration was (and still is, for now) relatively simple for EU citizens. Only time can tell how this will change.
Last updated 12:28 CEST on 24/06/2016.
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