Brexit: A brief background

U.K. Prime Minister David Cameron has called for a referendum to decide whether Britain should leave or remain in the European Union. According to Cameron, it is time for the British people to have their say about the country’s EU membership. The referendum will be held on June 23.

The European Union is an economic and political partnership among 28 European countries. The union aims to foster economic cooperation through free movement of people, goods, and services within its member countries. It has its own law-making body, the European Parliament, which sets policies for a broad range of areas including environment, health, consumer rights, and migration.

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The U.K. Independence Party and half of Conservative MPs are lobbying for Brexit. The “leave” campaign believes that Britain is held back by EU. They argue that the millions of pounds spent on membership fees offer minimal return and could be spent on more important endeavors such as education and scientific research. Regaining full control of Britain’s borders to reduce the number of immigrant workers is another point raised by those for Brexit.

The Prime Minister, along with 16 members of the cabinet, advocates for the country’s continued membership of EU. The “remain” lobby sees the benefits of the union in boosting the country’s economy through free movement of labor and trade. They also argue that a unified Europe promotes greater influence in foreign policy and creates an avenue on better trade and defense negotiation.

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Economists are still uncertain about the long-term impacts of Brexit on the British and European economies but both “leave” and “remain” parties acknowledge that the short-term consequences of departing the union are likely to be negative. Brexit could expose Britain to heightened uncertainty over future trade arrangements that could potentially incur losses in income. The worst case scenario, according to the organization Open Europe, is that U.K. GDP would be 2.2 percent lower in 2030 if it leaves EU. Conversely, in a best case scenario, Britain could increase its GDP by 1.6 percent after Brexit.

Opinion polls show that the British people remain split on the Brexit issue. As U.K. nears the referendum, it is imperative for the citizens to weigh the pros and cons of leaving the union as the outcome of Brexit will impact not only Britain and Europe but also the rest of the world.