Maintaining Legal Political Requirements †Myassignmenthel.Com

Question: Discuss About The Maintaining Legal Political Requirements? Answer: Introducation For any countries to leave the European Union, it has to undergo a process maintaining legal and political requirements. The membership under the union is subject to specific law and one such law included in Article 50 provides right to the member countries to leave such union anytime. This article under the Treaty of European Union empowers members to withdraw its membership following legal process abiding by the constitutional requirements (Kierzenkowski et al. 2016). A country willing to leave, first has to give notice of its intention to leave to the European Council in order to initiate the procedure of withdrawal agreement to be generated and negotiated between EU and the nation. Since the day agreement is signed, all the existing treaties of EU become no longer applicable to the country decided to exit. The withdrawal agreement negotiation involves a time of 2 years, which is known as sunset period. The Council makes brings forth the conclusion to the agreement on behalf of th e Union. The conclusive agreement specifies the post exit relationship between EU and the nation withdrawing from it. The negotiations are made following the article 218(3) under the Treaty on the financial of Europe (Wadsworth et al. 2016). On receiving the consent from the Parliament of Europe, Council approves the agreement following the action of qualified majority. Brexit Impact On Uk Eu: The former Prime Minister of the Britain David Cameron being in favor of continuing membership with the EU, apprehended an economic crisis in the post-Brexit UK. After the referendum came into operation, the national currency pound steeply slumped and remained 10% lower than dollar and almost 15% lower than euro. Immigration being the greatest reason behind driving Brexit, are expected to remain still high even after successful exit of Britain from the Union due to the fact that many European citizen earns their livelihood depending upon UK economy (Pisani-Ferry et al. 2016). The impact of Brexit would be detrimental to the trade relation between UK and EU as the trade cost of Britain will rise. Almost half of the UKs entire volume of trade takes place with European countries and following the Brexit UK is not eligible to reap the benefit of relaxed trade between EU countries. Due to higher cost of tariff and non-tariff barrier implied in the international trade the country would suffer loss of trade further reflecting the loss of national income and reduced economic growth. As per the report of CBRE Group, a property firm, the incident of Brexit has called for more risk for the property markets, which is associated with uncertainties (Goodwin and Heath 2016). Many economists expected Brexit to create short-term volatility in the market and showed positive sign toward the long term prospects of the economy. The country remains attractive toward foreign direct investment keeping the confident of the investors robust. Against the negative prediction, the UK economy estimated to grow by 1.8% in 2016 preceded by Germany growing by 1.9% among the G7 industrialized countries. The EU countries, importers from UK would be affected by the brexit due to the lower trade stemming from higher trade barriers and increased trade cost. Brexit Impact On Existing Eu Members In the history of the British international relation, the referendum has been significant incident having far-reaching impact on the domestic as well as global economy. The political landscape of the entire Europe is also influenced and instigated by it. Following a recent voting undertaken by YouGov majority of six countries out of 7 have intended to take an exit from the EU. 69% of the citizens of Sweden believe that post-Brexit the exit of the nations would raise (Dhingra et al. 2016). According to the political risk analysts, the broader picture of the effect of referendum is irrespective to the worldwide presence of euro skeptic and populism, even though the referendum triggers nations under EU to take decision of leaving, the Business process would be no immediate and fast with much doubt. Soft-Brexit Or Hard-Brexit: Impact On Eu The hard-Brexit refers that UK would leave the entire EU driven by single market mechanism. Such would disrupt al the trade-taking place between EU countries including UK. The trading partners of Britain would suffer loss of trade along with Britain who incurs higher cost of trade if it continues trade with European countries. Hard-Brexit would induce the country carry out international trade under the World Trade Organization regulations (Dorling 2016). This allows UK to take participation in world trade beyond the EU countries. Contrastingly, Soft-Brexit allows UK the option of staying in single market even after exiting from EU. Applying multi sector multicounty general equilibrium model, it has been shown that the Brexit would cause loss in the welfare by 2.6% the benefits of the Brexit in form of lower immigration, better regulation and more trade with non-EU countries can actually do less to offset such loss that in presence of dynamic model shows greate loss in the welfare alm ost by 9.5% incorporating productivity effects. References Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on foreign management in the UK.BREXIT 2016, p.24. Dorling, D., 2016. Brexit: the decision of a divided country. Goodwin, M.J. and Heathcare, O., 2016. The 2016 Referendum, Brexit and the Left Behind: An Aggregate?level Analysis of the Result.The Political Quarterly,87(3), pp.323-332. Kierzenkowski, R., Pain, N., Rusticelli, E. and Zwart, S., 2016. The Economic Consequences of Brexit. Pisani-Ferry, J., Rttgen, N., Sapir, A., Tucker, P. and Wolff, G.B., 2016.Europe after Brexit: A proposal for a continental partnership(Vol. 25). Brussels: Bruegel. Wadsworth, J., Dhingra, S., Ottaviano, G. and Van Reenen, J., 2016. Brexit and the Impact of Immigration on the UK.Centre for Economic Performance. LSE, pp.34-53.