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Britain after Brexit
What will actually happen next? 

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Britain after a Brexit : what will actually happen?



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Events since the referendum : a Brexit timeline Before the referendum: Brexit for or against: the arguments Brexit: a short history from Churchill to 2020

   Looking back.

This page is an archive, dating from 2016. However the process of Brexit is not yet complete – indeed may well not be complete for some time to come.

What just might happen...

What is more likely to happen ...

Negotiations to leave.....

The  UK government, with David Cameron as the new prime minister, successfully concludes negotiations under Article 50 of the European Union Treaty, and Britain extracts itself painlessly from the EU. The European Union is eager to get Britain's exit sorted out as quickly as possible, and then begin a new relationship with a sovereign UK, offering us favourable bilateral agreements on trade, movement of people, reciprocal health care rights, and other subjects.
  Because Britain is such an important country, we manage to set up a new working relationship with the EU that is better than any other nation or group of nations has been able to obtain. This is a relationship in which we enjoy all the benefits of association with the EU without any cost in terms of contribution to the EU budget. We get to have our cake and eat it  – unlike Switzerland and Norway which both pay into the EU.
Either: Theresa May declares that more work is needed before Brexit can be triggered. This is actually a kind way of saying "I'm not going to take the UK out of the EU, because I don't think it is in the national interest, and I'm not the kind of politician who can think one thing and do the opposite. So I'll work for a solution that is better than Brexit"

Or. The  UK government, with Theresa May in charge, begins negotiations under Article 50 of the European Union Treaty, and is rapidly bogged down in inextricable international legal problems which considerably slow down the negotiation process.
   Article 50 stipulates that the terms of exit are decided by the remaining EU nations without the exiting country, then presented to it when there is a document ready. Finding agreement on a multitude of points is likely to take a lot longer than the two year exit period, and negotiating new arrangements for trade, movement of people, and cooperation in a raft of areas is liable to take up to ten years.
  But continuing negotiations beyond the 2 year time frame requires the unanimous approval of the other 27 member states. If just one member country refuses to agree to an extension, then the UK exits from the EU by default two years after applying to leave – but with no new agreements in place on any subject - neither trade nor travel nor health care nor law nor cooperation. Britain's situation with respect to the EU will be no different to that of countries like Burma or Uzbekistan. Even if it is probable that the principle of visa-free tourist traffic between the EU and the UK will be very rapidly put in place, even this will not be automatic – though whatever is set up will be a reciprocal agreement.

Relations with the remaining European Union

Both the British government and the European Union will want to reach new agreements as quickly as possible, as this will be in the best interests of both. New arrangements on movement of people between the UK and the EU (which means also between Northern Ireland and the Republic of Ireland, an EU member state) will be in place before the end of the two-year time-frame for negotiating the terms of exit. Since Britain is a major market for EU goods and services, EU negotiators will want to ensure that a customs union, or something similar to it, is in place between the EU and the UK before the Brexit actually takes place The British government  will want to reach new agreements as quickly as possible, but the European Union will have little interest in speeding up the process, if only to discourage other member states from following Britain. After all, walking away from the European Union will be an immensely costly and time-consuming process both for the country wanting to leave, and for the EU, and the EU will not want to go through it again.
   More importantly though, by leaving the EU, Britain will be making a body blow against the institution which will be immensely damaging to the EU, and could trigger an upsurge of populist nationalisms in other parts of Europe – even the collapse of the EU. This would have profound and very costly consequences for everyone, in or out.
   As Germany's finance minister has clearly states, "Out means out", and if that's what the UK chooses, then they will be out... Including out of the single market. The rest of the EU is not going to show any favours to a UK that has constantly been the most recalcitrant member of the Union.

Removing European law from the statute books

Parliament will act swiftly to remove unwanted European law from the statute books, scrapping certain laws altogether such as the Human Rights Act, and modifying others so that any inappropriate legislation is removed. It will take Parliament an awfully long time to remove forty years of legislation from the statute books. There is no way to wave a wand and delete all references to EU law in a single piece of legislation. Besides, Parliament will not want to remove all European law from the statute books. Far from it.
   While it may be possible to remove a batch of laws, making changes to individual acts of parliament must be done on a case by case basis, and each new law must be approved by Parliament. Parliament does not have unlimited time, and must also deal with other ongoing legislation. Extra time will need to be found to rewrite and approve changes to thousands of existing pieces of legislation.
   In the event, most parts of European law that have been adopted into British law will remain in force, as they are not controversial. No government is going to rescind more than a token part of EU environmental legislation, as most people in Britain want laws to limit air pollution, use of pesticides - even if certain lobbies complain that EU laws put extra costs on their operations.
   Look at the situation in Switzerland and Norway; neither country is a member of the European Union, but both countries adopt most of European law.

Life in Britain

Life in Britain will get better. Freed from the cost and bureaucracy of the European Union, our employers will be free to develop their businesses as they wish and to conquer new markets; we will become a richer nation, and the world will look up to a new sovereign United Kingdom.
   The millions of pounds currently sent each day to Brussels can be spent instead on building new hospitals, helping farmers, and reducing taxes.
  The number of foreigners in the UK will fall, relieving the pressures that are currently strangling public services. Waiting times in A&E and doctors' surgeries will fall, there will be more housing available, and smaller class sizes in schools.
   Wages for unqualified jobs will rise, once they are no longer driven down by competition from workers from other EU countries. Unemployment will fall to zero.
  In the end, everyone will be better off.  The government will be able to reduce VAT, or replace it with a fairer form of sales tax.
Everyone in Britain will get poorer. The quality of life in Britain will deteriorate, as the British economy begins to contract following a vote to leave the EU. Unemployment will rise, the cost of imports will rise, and as a result taxes will go up.
   The millions of pounds currently sent each day to Brussels will have to be spent making up for the loss of the large EU grants that currently support British farmers, scientific research, projects in Britain's poorer regions, student aid programmes, and other European projects, and paying the army of new civil servants who will be required to take over the running of all of Britain's new sovereign international trade and cooperation agreements.
   The number of foreigners in the UK will not fall, as the UK will not be able to unilaterally expel foreign nationals, especially those of them - which means the majority - who are contributing positively to the UK economy, and filling vital roles in public services or with private sector employers.
   Pressures on the National Health Service, housing, schools and other services will get greater, as a stagnant or falling economy gives the government less money to invest.
   VAT, which already stands at 5 points above the EU required level, will remain high, and may even increase. The treasury will need to find new ways of raising taxes

Borders and immigration

Britain will regain full control of its borders, and people from EU countries will be subject to the same controls, restrictions and visa requirements as those from other parts of the world.
   Since visa and immigration rules are established on a reciprocal basis, British passport-holders will face similar restrictions when wanting to travel to Europe for holidays or for work. Expect less mobility, therefore higher air fares and long delays at airports and ports. This is the price we must pay to regain the right to exclude EU citizens from coming to Britain.
   Britain will negotiate with the EU to allow the free movement of labour between Britain and the EU for certain types of job and up to clearly defined limits, corresponding to the needs of the British economy.   
Britain will regain control of its borders, and people from EU countries will be subject to the same controls, restrictions and visa requirements as those from other parts of the world.  British passport-holders will face similar restrictions when wanting to travel to Europe for holidays or for work.
   But this will be the thin end of the wedge. The EU will not be willing, and indeed not be legally able, to allow selective  free movement of labour between Britain and the EU. Citizens of EU countries are equal before the law, and the EU will not sign up to a deal that allows the UK to restrict access to Bulgarians and Poles, but not Germans or Dutch workers. If there is to be a free movement of people agreement, it will be like that which already exists with Switzerland.
   Although it is not a member of the EU, Switzerland has signed up to the EU free movement of people agreement, and also to the EU borderless Schengen zone, as the price to pay for allowing Swiss companies, though not their financial services, free access to the EU market.

Trade between Britain and the EU after Brexit

Even if Europe is Britain's biggest export market, taking about 40% of all our exports, the European Union exports more to Britain than Britain exports to Europe, so it is in Europe's interest to set up a free trade deal with Britain as quickly as possible.  
   Freed from European red tape and the cost of EU membership, British firms will then find themselves at a competitive advantage over manufacturers and service companies in the EU, and will be able to expand their export business, specially if as expected the value of the pound falls against the Europe following a Brexit vote. This will be good for jobs in Britain.
    European imports to Britain will become relatively more expensive, and this will help to rebalance trade between the UK and the EU in Britain's favour
Although the EU exports more in value to the UK than we export to Europe, the European Union is a much bigger economy than the UK, and in fact Britain only takes 6% of EU exports.
    Under these circumstances, the EU will only have limited interest in re-establishing a free-trade agreement with the UK, specially if major industries in EU member states object to UK exporters undercutting them.
    The EU will only set up a free trade agreement with the UK, as it has with Switzerland or with Norway, if this is in the EU's interest; it will have little interest in doing so if it is solely or predominantly in the UK's interest.
    Free access to European markets for UK manufacturers and service providers will therefore be dependent on the UK accepting European Union rules and standards concerning product specification and workplace legislation – which will be a pretty pointless result, as one of the main reasons that drives people to reject the EU is a desire to be free of these perceived forms of "red tape".
   If the UK really wants to trade favourably with the EU, as it does today, then we will not be able to do so without keeping EU legislation in our national law.  To suggest that we could "free ourselves" from EU legislation is complete make-believe. Though Switzerland is not a member of the EU, "around 40% of Swiss legislation derives from EU rules - ironically more than twice as much as in the British context " according to a report by the University of Kent.

Trade between Britain and the rest of the world after Brexit

  As a sovereign nation, we will be able to set up any trade agreements we want with any nation or group of nations in the world. We will no longer have to wait for the cumbersome machinery of Europe, in order to set up agreements with countries outside Europe, and this will be a big stimulus for British trade and services. As Barack Obama pointed out, even if it is currently the world's sixth largest economy, Britain will not be a priority for larger trading blocs or nations like the USA. Britain will have to go to "the back of the queue", as Obama put it, and will not get preferential deals.
  Other nations will have far more interest in setting up trade agreements with the EU than with Britain, given that the EU is a far bigger market than the UK. 

The NHS and health care

  A lot of the money currently being paid into the EU budget can be used instead to increase funding for the NHS. And with less immigration to the UK, there will be less pressure on services, so waiting times will fall and the quality of service will improve. We will be able to recruit more nurses and doctors from Commonwealth countries to replace the EU health workers that are now recruited to help run our health and social services.
  Foreign visitors to the UK will have to pay for any health care services they use
There will be very little extra money specifically available for the NHS, if we stop paying into the EU budget. Besides, if we want to obtain a privileged trade agreement with the EU, we will still either need to pay into the EU budget and/or accept free movement of people, as Norway and Switzerland do; so there may be no extra money at all - or no less people.
  In addition, by leaving the EU, Britain will be out of the European Union health insurance scheme. Britons will no longer be eligible for a free EHIC card, giving them access to national health care systems throughout the European Union. Instead, holidaymakers and business travellers to Europe will need to purchase costly health insurance... yet another cost of leaving.

Politics and government in Britain after Brexit

 Following a referendum vote to leave Europe, David Cameron remains provisionally as Prime Minister, as he has said he will do, handing over to a new leader in 2019, before the next general election. Boris Johnson will become the next Prime Minister, and the Conservatives, now reunited as a party, can govern serenely to enact a seamless transition to a prosperous new age of Britain outside the European Union.  Thanks to the return of millions of voters who had gone over to UKIP, the Conservatives under Boris Johnson win a handsome victory at the 2020 General Election,
  With Britain now out of Europe, UKIP no longer has much reason to exist;  it therefore disbands, melts away, or is merged with the Conservative Party, and the new government, with a substantial majority in parliament, is in a position of force not just to govern the UK, but to represent the UK's interests on the international stage.
Following a referendum vote to leave Europe, the Conservative party is thrown into disarray. David Cameron rapidly steps down, and is replaced by someone else; but the Conservative party is now seriously fractured and a number of Conservative MPs, deeply unhappy with the way the party's lurch towards isolationism, break away to form a new centre-right  party. 
  Without a parliamentary majority, the new PM struggles on until 2020, or else decides to call an early election. With both the Conservatives and Labour seriously divided, the election campaign is nastier than ever before.   In one secenario, the new Conservatives sweep back to power with the help of UKIP voters, and form a very right-wing government pledged to roll back not just any remaining bits of EU legislation, but a whole raft of "interfering" national legislation in the fields of environmental protection, social protection, human rights and justice. The Scots meanwhile vote for independence, but the new Conservative government does not accept this attempt to break up the UK.
   In an alternative scenario, given the turmoil that has engulfed Britain since the referendum, the Conservatives lose heavily, and Labour, still under Jeremy Corbyn, emerges as the single largest party. In the end, Labour is forced to form a coalition with the Scottish Nationalists



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 © Andrew Rossiter and About-Britain.com 2016 





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