Since the Brexit is one of the most important financial events of this decade, I decided to compile an informative sheet of everything one needs to know about it.
Why Does the United Kingdom Want to Leave the European Union?
Leaving the union will help the UK in terms of boosting their economy and jobs, securing borders and allowing for more local control. In November of 2015, Prime Minister David Cameron wrote four objectives down in a letter to Donald Tusk, the president of the European Council. The objectives are as follows:
“Economic Governance: Securing an explicit recognition that the Euro is not the only currency of the European Union, to ensure countries outside the Eurozone are not materially disadvantaged. The UK wants safeguards that steps to further financial union cannot be imposed on non-Eurozone members and the UK will not have to contribute to Eurozone bailouts.
Competitiveness: Setting a target for the reduction of the “burden” of excessive regulation and extending the single market.
Immigration: Restricting access to in-work and out-of-work benefits to EU migrants. Specifically, ministers want to stop those coming to the UK from claiming certain benefits until they have been resident for four years. Ministers have reportedly been warned by the UK’s top civil servant this could be discriminatory and any limits may be reduced to less than a year. An option of an “emergency brake” to stop the payments for four years is being discussed as a compromise deal.
Sovereignty: Allowing Britain to opt out from the EU’s founding ambition to forge an “ever closer union” of the peoples of Europe so it will not be drawn into further political integration. Giving greater powers to national parliaments to block EU legislation.”
What Are the Benefits of Staying in the Union?
Everyone from the United States, to China, to Prime Minister David Cameron want the UK to stay in the European Union. The main argument is that the UK is essentially safer and stronger as a part of the European Union. Remember, they are already not a part of the Eurozone, therefore they have their own currency, the British Pound. Other benefits of staying in the union include stronger national security, having influence in Europe and open and free trade as well as the UK can continue to act as a gate to facilitate the intervention of U.S. banks with the countries in the European Union.
Why Does this Referendum Matter?
As previously stated, many banks use the United Kingdom to facilitate trades into the European Union. If the United Kingdom where to leave, it would weaken the union and breakdown billions of dollars in global infrastructure. In short, it will hurt the global economy.
When Will We Know the Results of the Referendum?
Below I assembled a time table from when voting starts to when the public is expected to learn the outcome.
|7 am (2 am EST)||Polling Stations Open|
|10 pm (5 pm EST)||Polling Stations Close|
|11:30 pm (6:30 pm EST)||First Announcements on Voter Turnout|
|12:30 am (7:30 pm EST)||Results Expected for First Counting Areas|
|3-4 am (10-11 pm EST)||Results From Half of the Counting Areas|
|5 am (12 am EST)||Results From About 80% of Counting Areas|
|7 am (2 am EST)||All Votes are Likely Counted and the Official Result is Expected Shortly After|
Notice: The four quoted objectives are courtesy of BBC.com.