The Pros and Cons of Brexit
Lately, there’s been an abundance of media and press coverage regarding Brexit, most of it against the pending pull out from the EU by the United Kingdom. However, a good deal of this biased sentiment is caused by misinformation or sheer panic.
The EU establishment, who for years have been quite satisfied with the existing arrangement, are now predicting the collapse of their cherished union if not an economic Armageddon. There’s no shortage of pundits running about with their hair un-fire.
But how did this situation come about in the first place? For starters, the EU itself is in dire need of political and economic reforms. It started as an economic Common Market, with a limited scope that enabled its members to achieve incredible growth over the years.
However, over time it morphed into a political monstrosity. As a result, a group of unelected technocrats in Brussels began dictating economic, social and political mandates to its sovereign, democratic member states on crucial issues such as immigration.
Thus, one of the political arguments in the UK today is that Brexit is necessary in order to protect and preserve British democracy. There is also a nationalistic concern regarding the subordination of the UK to the will of two historic rivals: Germany and France.
Economic concerns are another factor. While more and more funds are pouring into Brussels, less and less capital is reaching local programs in the member states. As the EU has grown in size and power, so has its self-consuming bureaucracy in Brussels.
Brexit is also proving there is truth to the age-old adage that “Man does not live by bread alone.” Other member states like Italy, Hungary and Poland are seriously concerned about their political sovereignty, as well as fiscal currency issues within the EU.
In the end, what does this mean for the future? It’s unlikely the EU will collapse or be drastically undermined by Brexit. Chances are that with some sorely needed reforms, it will continue to prosper and contribute to the welfare of the European continent.
On the other hand, a “No Deal Brexit” could cause serious economic problems in the short run for the UK and Ireland. As an EU member and major UK trading partner, the Irish Republic could be adversely affected. This problem is further complicated by the northern Irish backstop issue.
Yet there’s also a possibility that the UK in the long run could significantly benefit from Brexit. In fact, pro-Brexiteers are banking on huge trade and investment growth, since they will no longer need permission from Brussels to negotiate international agreements.
Britain, the fifth wealthiest nation in the world, could obtain a special trade relationship with the United States, substantially altering the global trade scenario. London could also negotiate lucrative commercial initiatives with non-European nations like Australia, South Africa, Canada and India.
However, no one knows for sure what will happen; the day of reckoning is approaching on October31st. An entirely unexpected outcome may occur. Therefore, it would be wise to avoid any unnecessary anxiety or a “doom and gloom” prognosis.
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