Brexit: The referendum that shook the world by Darsh Pant

Brexit: The referendum that shook the world

“It started as a cry for liberty but ended as a rebuke for the British establishment”. Brexit has not only damaged the UK but all of the world. It has sent shivers down the spines of global share and trading markets.  It has shattered trade relations, and due to this UK’s economy is plummeting. Not only that, it has further augmented to the repelling forces that have torn the EU apart, and has further hindered with fragile ties of political stability and diplomatic relations with the EU states; now with its primary policymaker gone the EU is vulnerable to loss of sovereignty in the form of terrorism.  Brexit was fueled by an ambiguous anti- immigrant, anti- social, anti- liberal and fear based propaganda, which was proposed as an act of independence and liberty. Brexit was a horrifying choice

To begin with, the British stock market saw its ever drop since the great recession of the 20^th century, as a result many global stock trading firms wept and leapt back in alarm as the Britain got knocked out on in the financial sector. London which is one of the world’s largest financial centers faced its doomsday as it crumpled against New York, Honk Kong, Tokyo and many more financial centers. “The FTSE 100 index (which is London stock market’s benchmark) has slumped by 7.5 % and the FTSE  250 also lowered and is still below its pre Brexit vote level” – The Guardian. Since the EU provides a common market for trading without tariffs being imposed the share trading market has been plummeting. Although some people were constantly ranting about the millions of pounds that UK was paying the EU, and that if this referendum is passed that money will be used for healthcare, but as usual this was just another brick in the wall of fake and delusional promises; the healthcare is yet abandoned. According to the guardian the pound has fallen sharply against the dollar and the banking shares have been hammered on sector health fears. Another report has reconfirmed hat the sterling has stumbled against the euro. As a result of this referendum the world stock market had plunged into what seemed a pandemonium, as the pound, euro and the sterling faced a steep drop. Not only that the Dow jones fell 611 points in a day!The damage was not specific to UK only as even bigger losses were faced by Paris and Frankfurt which fell more than 10% at a specific time, the EU was extremely concerned since both of them were Eurozone’s main markets.  A report by the “Atlantic”, a reputed press agency reconfirmed that on the 23^rd June approximately $171 billion was lost in the steep fall on the FTSE. The EU allows UK based financial asset managers to sell stocks in other EU countries from London, now tariffs are being imposed and this is causing many. According to the germen MEP “there cannot be pass porting without accepting all the obligations of the common market”, “you can’t grant the city of London, directly or indirectly, market access (without the UK playing by EU rules), he said. “There must be a priority to avoid any bad incentive structure”.” More than 50% of tour exports go to EU states”, commented Sky news, now to trade UK has to pay the same amount of price as any other non EU country, because the integrity of European institutions should be respected. The guardian reported that “The most likely outcome is reduced bilateral trade with EU countries”. The UK has decreased its financial sector .Overall it was just a turmoil on 23^rd June as a financially instable UK trembled and eventually fell, causing many other stock and trading markets to drown with itself.

To add onto that, this referendum has rattled the fragile political ties amongst the EU states; it has multiplied the centrifugal forces that are ripping the EU apart. Since Scotland had strongly voted to remain in the EU, a possible act of Scotland leaving the UK is very much possible; according to Richard Haas (the president of the council on foreign relations) “In five years there will no longer be a United Kingdom. Scotland will be independent and part of Europe”.  UK has lost its negotiating power, and Europe will be now centered around Germany; UK is now secluded politically as it has shut its doors to any diplomatic relations with the EU states. The EU provided a common forum for tackling problems that may concern Europe as a whole and further strengthened the ties between its fellow members, it was perceived as a global institution for prosperity, security, and an epitome of international architecture, but now with its primary policy maker gone the EU more vulnerable to sovereignty threats and with the world enjoying populist movements many countries could possibly also leave the EU. Many global firms may decide to move out of the UK since will be imposed on trade with EU states and 50% of UK’s export go to the EU states, this will result in unemployment and economic instability. If other EU states, follow the Britain then the 60-year-old primary institution of Europe will be in great peril as an already instable Europe will crumble. The UK will lose political authority and power, according to John Mc Laughlin who is a   ‘Brexpert’ “ Germany, which is now the continents  largest and the most influential power, will be poised to dominate economic and political trends”, clearly suggesting that the UK will trail behind; Brexit will lead to a weaker, less confident, unstable and a politically weak UK and EU. The dream of an ‘ever closer union’ is well and truly dead.  A new referendum could be provoked that would lead to Scotland’s independence; the political division will increase and a divided Europe will find it hard to heal itself. According to professional economists a loss of $5000 per annum will be evident for the common public. Though some may believe that this act granted UK liberty and independence, but in reality it has left UK in political seclusion, financial jeopardy and has led to a weaker and an unstable Europe. Britain has hindered with diplomatic ties between the EU, now it has to negotiate its relationship with the EU, since the EU has ties with many superpowers UK will lose the opportunity to globalize with these superpowers. Ian Bremmer, president of the Eurasia group believes that “There will be some form of disintegration of the United Kingdom”, weakening the geographical and political ties in the time when UK required it the most. Now Europe is to be dominated by the French – German diplomacy, leaving the UK behind. The aim of this referendum was to gain was to gain independence and liberty from the EU, but this had has led to seclusion and political instability and has weakened the UK, but the EU was not invading UK’s sovereignty nor was it threatening its liberty, but it was making UK stronger as a nation, so the entire aim behind this referendum is highly questionable and ambiguous.

“A vote to leave is the gamble of the century. And it would be our children’s future on the table if we were to roll the dice” – David Cameron, UK’s ex-prime minister. It has turned out that Mr. Cameron was right, except it was not just the children’s future on the table but the future of the entire Europe. The biggest question is this, if it was so bad then why did UK vote in favor of this referendum? Brexit was propelled by an anti- immigrant, ant-global, delusion based propaganda, but the opposition termed this as a referendum of independence and liberty, and the consequences are evident. Even a pro Brexit voter is shocked “I am a bit shocked, I am shocked that we voted to leave, I didn’t think it was going to happen” on leave voter told BBC. The consequences were so devastating that David Cameron abdicated from the position, and had lost faith in his country. It came to us as a baton of liberty, which would pass onto to be an act of independence, but scattering light on recent events even the common man is regretting the vote. This same propaganda that propelled and fueled Brexit is now decreasing the liberal parties and is bringing in more conventional, anti-immigrant and anti-global parties, if any other EU state follows the example of Britain then the EU will fall into pandemonium. The opposition promised better healthcare, independence and liberty; but this was just another fake promise, it was a delusion; it was based on nationalism, independence and control over its immigration and democracy, but this turned into seclusion, havoc in the financial sector, and geo – political instability. The vote was passed because UK citizens thought that the promises will be upheld, a promise of a stronger, independent UK but it ended as a rebuke to the establishment. As for the promises, they were never true either, the voters were persuaded or rather manipulated by the opposition into a populism movement which was anti – liberal, because the conservative party wanted victory not for UK but for itself.

To summarize, Brexit was one of the most disastrous decisions of this decade; the earthquake of this referendum was global. On 23th June Brexit or not there were only loss for Europe, as a weak UK trembled and a torn Europe fell with it, not only that there was pandemonium in the stock market as the pound, sterling and the euro faced a steep drop, the trade has plummeted down, causing unemployment and financial loss. But it doesn’t stop there, the fragile diplomatic and political ties were hindered and the UK lost its political power. This referendum put the final nail in the coffin of a truly dead UK and EU. This referendum was based on delusion, “It started as a cry for liberty but ended as a rebuke to the establishment”. This was a start of a populism movement, and if any other EU state follows UK then I am afraid that the EU will see a peace exit. Overall Brexit was a propaganda that shook the world on a global stage, it was an appeal for independence but ended as a rebuke.