In 2016, the United Kingdom made history by voting to leave the European Union. This decision, known as Brexit, won by 51.9% with 17.4 million votes. The vote had a turnout of 72.2%1, making it a significant event that changed Europe’s course.
Since then, the UK and the EU have faced many challenges. The UK officially left on January 31, 2020. This marked the beginning of a new set of rules and agreements. The EU had to manage a big financial deal and adapt to a new situation after the UK’s Conservative Party won big in 20191.
Key Takeaways
- The UK’s departure from the EU represents the first time a member state has left the bloc, leading to significant political, economic, and legal adjustments.
- Brexit has had far-reaching consequences, impacting trade policies, immigration laws, regulatory frameworks, and the financial sector.
- Tensions have emerged between the UK and EU, as well as within the UK itself, particularly in Scotland where a majority voted to remain.
- The EU is navigating the challenges of losing a major member state, including negotiating a withdrawal agreement and new trade deal.
- The post-Brexit era has ushered in a new era of uncertainty and adaptation for the EU and its member states.
Brexit’s Impact on the European Union
The Brexit or the UK leaving the EU has changed a lot for the EU. The EU has grown for 70 years, always adding new members. Brexit marks a big change as the first exit2.
The UK’s Departure and its Consequences
The effects of Brexit are still felt in the UK. The Conservative Party faces challenges. Tensions are high, especially in Scotland which wanted to stay in the EU. They can’t have another referendum without London’s say2.
Dates and Timeline of Brexit
Brexit happened over several key dates. The UK decided to leave the EU on June 23, 2016. This was a close vote, with 52% saying yes. They officially left on January 31, 2020, but a lot of things stayed the same until December 312.
After tough talks, the UK and the EU agreed on trade and future deals on December 24, 2020. This deal prevented a bad “no-deal” outcome. On January 1, 2021, the UK began its new chapter outside the EU2.
| Event | Date |
|---|---|
| UK Referendum on EU Membership | June 23, 2016 |
| UK Officially Leaves the EU | January 31, 2020 |
| Transition Period Ends | December 31, 2020 |
| UK-EU Trade and Cooperation Agreement Reached | December 24, 2020 |
Economic and Trade Implications
The UK left the EU, causing big changes in its economy and trade3. A deal, the EU-UK Trade and Cooperation Agreement (TCA), now guides their trade. Since January 2021, the UK’s trade with the EU, especially in goods, dropped a lot3.
This drop happened both in what the UK sold to the EU and what it bought. Many goods exporters in the UK found it hard to deal with the new rules. Even though things are getting better, trade remains lower than before Brexit3.
Effects on GDP, Investment, and Trade
Brexit made the UK’s economic problems worse, most experts say3. A survey showed that many companies weren’t doing better with the new TCA. And over half found exporting harder with the new rules3.
Trade in services with the EU, like financial services, is still low after Brexit3. The UK now owes more money abroad because of changes in trade, hitting its economy hard3.
After the pandemic, the UK’s trade recovered slower than other countries’. By the end of 2021, the UK was trading less than before the pandemic3. Many ways have been used to see Brexit’s effects on trade, looking at patterns with the EU and others3.
The EU-UK Trade and Cooperation Agreement
In 2021, the EU-UK trade deal started working. It makes trading goods between them easy, with no taxes or amounts limit. But services aren’t included. This deal also talks about future business competition, fishing rules, and working together on safety3.
Leaving the EU caused more checks and rules at the UK’s borders. This made deliveries take longer and caused more problems for businesses3
Even before new trade rules with the EU, the UK’s trade had started dropping4. In 2021, UK goods sold to the EU were 45% less in January and still 15% less by August than in 20194. Imports from the EU also went down a lot and stayed low later in the year4.
Trade with other countries recovered better by August 20214. But leaving the EU meant 15.8% less trade for the UK by then. The level of trade reduction matched predictions from 2016, showing Brexit’s expected impact4.
Brexit had a big effect on the UK’s economy, with most people believing it hurt5. Few thought it was good, even among those who wanted to leave. The UK’s trading compared to its economy has dropped more than other big economies since Brexit5.
It’s been especially hard for companies selling goods, especially small ones. Services trade, however, has done better after Brexit5.
Overall, Brexit’s economic and trade effects on the UK are major, reducing its GDP by 2-3%534.
Citizens’ Rights and Residency
After Brexit, the UK and the EU ended the free movement game. But, both sides made a deal to keep the rights of EU residents in the UK and UK residents in the EU safe. This was for people who were already living in these places before 2021 started6.
EU Settlement Scheme and Settled Status
The UK launched the EU Settlement Scheme for EU, EEA, and Swiss citizens living here. It’s helped over six million people so far by giving them ‘settled status’. This means they can keep living, working, and using public services in the UK6.
Yet, many faced troubles, especially trying to get family rights. Sadly, some are still waiting due to a big backlog6.
For Britons in the EU by 2020, they get to stay too. But they need to get the right documents, and these can be different in each EU country6.
| Citizen’s Rights and Residency Provisions | Details |
|---|---|
| UK nationals who moved to European countries before 1 January 2021 | Covered by the Withdrawal Agreement6 |
| Close family members of UK nationals | Can join you in the country where you are living if your relationship began before 31 December 20206 |
| UK nationals’ rights to healthcare | Retained in the EU country they live in as long as they remain covered by the Withdrawal Agreement6 |
| UK nationals regularly commuting to work in other EU or EFTA countries before 1 January 2021 | Should read the guidance for frontier workers6 |
| UK nationals’ access to education in the EU | Same rights as nationals of the country where they live, including home fee status6 |
| UK nationals’ entitlement to UK benefits and pensions in the EU | Information available6 |
| Implementation of residence rights under the Withdrawal Agreement | Reports detail how the UK and EU countries are implementing them6 |
| UK nationals’ right to return to live in the UK in the future | Retained6 |
| UK and Irish nationals’ rights in the Common Travel Area | Not affected by Brexit6 |
| UK nationals lawfully resident in Iceland, Liechtenstein, or Norway before 1 January 2021 | Rights protected by the EEA EFTA Separation Agreement6 |
| UK nationals lawfully resident in Switzerland before 1 January 2021 | Rights protected by the UK-Switzerland agreement6 |
There are many moves to protect the rights of EU and UK citizens because of Brexit. But, the path ahead is full of challenges. It shows how tough things can get in the new post-Brexit world6.
European Union Post-Brexit Adjustments
The UK’s exit from the EU caused big changes. The EU lost a major member, affecting its size, wealth, and how votes are handled7. There was a net drop of 13% in the EU’s population, from early 2019 to 2020, because of Brexit. Without it, there would have been growth7.
After Brexit, the EU faced many issues. These included renegotiating trades, managing borders, and handling different rules between the UK and EU7. Brexit changed how the EU works with the movement of goods, people, services, and sharing criminal info7.
The EU set up the Brexit Adjustment Reserve to help EU countries deal with Brexit8. The reserve can go up to EUR 5.4 billion. The first chunk of money went out in 2021, with more to follow up until 20258.
This money helps countries like Ireland, hit hard by Brexit. Ireland got around EUR 1 billion, a fifth of the whole fund9. Another example, countries near the UK sea border received extra funds for Brexit challenges8.
The EU also made changes for Northern Ireland. It introduced the Windsor Framework9. This framework reduces border checks for trusted traders and goods staying in Northern Ireland, aiming to ease trade problems9.
As the EU moves forward post-Brexit, it plans more changes. These changes are to tackle economic, trade, and social effects of Brexit. The EU is working hard to help its members and keep the region stable in the future.
Immigration and Labor Shortages
After the UK left the European Union, it faced a big problem with its workforce. Sectors like agriculture and healthcare relied a lot on workers from Europe10. Since free movement ended, about 330,000 jobs in the UK were left empty10.
In the year leading up to June 2022, the UK saw about 504,000 people move in11. But at the same time, 460,000 workers from the EU left their jobs11. This was a big hit, losing about 1% of the country’s workers11.
Challenges in Sectors Reliant on European Workers
Places like hotels, hospitals, and farms have felt these job losses the most10. They needed around 128,000 more workers in transport, and 67,000 in food services, for example10. Construction and administration also needed a lot more help10.
About 130,000 new workers from outside the EU have arrived to help fill these jobs11. Especially in healthcare and education, more non-EU workers are making a difference11.
The UK’s rules for letting people move there have changed12. This has switched where workers come from and what they do12. Studies show that new people coming in does not hurt how many jobs are available or how much workers are paid. In fact, these new people help make more money for the UK than what the country spends on them12.
As the UK figures out its new way after leaving the EU, solving these job shortages is key. Doing so will help the country grow and stay strong economically101112.
Size and Wealth Shifts
The United Kingdom leaving the European Union changed many things13. With the UK gone, the EU lost one of its big players. This affected the EU’s size and how much money it has.
Population and GDP Changes
The EU’s population got smaller by 13% between January 2019 to January 2020 because of the UK leaving13. This change impacted the EU’s economy. Before leaving, the UK had a strong economy. This made a big difference in the EU’s economic power around the world.
Brexit has had significant economic effects13. Since Brexit, the UK’s economy has grown 5% less than similar countries. The Brexit decision to leave the EU is hurting the UK economy, causing it to be 4% to 8% smaller. UK trade and business investment have also not done well since leaving the EU13.
The UK’s economy is not doing as well as others13. When comparing to the euro zone and the U.S., the UK’s economy is not growing as fast. Prices in the UK are going up more than in the U.S. and the euro zone too13.
The EU is trying to adjust to losing the UK13. Losing the UK has affected the EU’s economy and politics on a world level. The EU is working to find its place after Brexit13.
After Brexit, the EU is looking for new economic chances14. Deals with Australia and Switzerland could help the UK’s economy. But, there’s no clear plan yet for deals with the U.S. and India. This makes the future uncertain1314.
Leaving the EU means the UK will not be paying as much into their budget14. The UK was a big financial supporter. The EU and the UK face tough talks about this money14.
After Brexit, the EU’s banking sector has seen some changes15. The City of London has long been a top financial hub for the euro. Yet, its position is weakening. The EU is allowing UK banks to operate until 2025. Other EU financial centers are growing stronger15.
The EU now has to manage a new economic situation15. Brexit changed a lot. Now, the EU must make sure it stays strong and influential in the world15.
Border Controls and Travel Restrictions
The UK leaving the EU marked important changes in how borders and travel work between them16. Major health events can cause the EU to limit who can enter from non-EU places16. For special reasons, border checks could come back for up to two years, maybe even six months more if it’s really serious16. Starting in the middle of 2025, people from places that don’t need a visa will need a check before going to the Schengen area16.
Entry/Exit System and Schengen Area Changes
The freedom to move easily between the UK and the EU has been cut off17. UK folks can only stay in the EU for 90 days out of any 180-day period without a visa. But, EU folks visiting the UK can stay for up to six months without trouble17. Also, UK travelers must get a special permit by the end of 2022 to visit the Schengen Area freely17.
These new checks and rules make it harder to go between the UK and EU. It’s tough for businesses and people18. The UK started checking animal and plant stuff from the EU first. But, full checks on EU things were postponed several times18. New checks mean more money for businesses, about £330 million more every year18.
| Top 10 Destinations for U.K. Travellers in 2019 |
|---|
| 1. Spain (18.1 million travellers)17 |
| 2. France |
| 3. Ireland |
| 4. United States |
| 5. Italy |
| 6. Greece |
| 7. Turkey |
| 8. Germany |
| 9. Portugal |
| 10. Netherlands |
Traveling to Europe from the UK means facing new hurdles17. Things like no more quick passport checks, needing a return ticket, and your passport has to be good for at least six months more after you arrive17. Brexit intended to end the free movement to better control the UK’s borders17.
The new rules help EU countries deal with changes in people moving and security, especially in emergencies16. They can limit which borders you can cross and when they are open. Plus, they can watch the borders more to keep things safe16. These rules lay out when and why they might need to check borders inside the EU again16. The ETIAS system will look at traveler info to catch any security or migration problems before they enter the Schengen area16. This helps keep the Schengen area strong and deal with migration and health issues16.
These changes are a big deal for businesses and people moving between the UK and EU18. New checks might raise food prices and a bit of inflation. Also, some worry EU businesses will stop selling to the UK because it’s harder and takes longer to do paperwork18. Slowdowns at the UK border could mean trouble for goods that go bad quickly18. More than half of businesses are worried about these new rules, with fewer saying they are ready, according to the Institute of Export and International Trade18.
Regulatory and Legal Implications
The United Kingdom has separated from the European Union. This means it doesn’t have to follow new EU laws. Instead, it can make its own rules19. For businesses working across the UK and EU, this change means new demands in areas like environmental care and data rules19.
The UK has set up its own system for checking chemicals, called UK REACH. It’s different from what the EU used to do19. Companies now must register their chemicals with the UK within 120 days of January 31, 202019. UK firms must keep up with EU standards to sell there, even though they follow different rules now19.
Goods in the UK will still use CE marks. But the UK is creating its own marking, UKCA, for certain items19. The EU won’t accept UKCA marks. They still want to see CE marks for products coming into Europe19.
Since 2017, when the Brexit process began, the regulatory scene has gotten more complicated. The UK left the EU on January 31, 202019. A transition period with EU rules will last until the end of 202019. This gives time for new UK-EU agreements. But until January 1, 2021, UK deals with other countries won’t apply19.
The UK government faces a big task in adjusting EU laws for its own use after Brexit. They are working on over 4,000 legal items20. Plus, they have to make more than 1,000 new rules and update over 100,000 EU laws by the end of 202020.
The change will likely bring more legal arguments and questions as people try to understand the new rules20. In farming and other areas, the UK has started its own laws, different from before20. There are also new ways for courts to ask for advice from higher courts when they’re not sure about a law20.
In health care, new UK rules have affected medical products. The EU and the UK now have their own separate rules for these items21. This split has led to a need for careful and correct translations to work through the changes21.
These Brexit impacts are broad and require companies to closely watch changing rules. They need to check where they need to adjust and keep their operations within the law to keep doing business21.
| Regulation | Pre-Brexit | Post-Brexit |
|---|---|---|
| Chemical Regulation | EU REACH | UK REACH |
| Product Compliance Marking | CE Marking | UKCA Marking |
| Medical Device Regulation | EU MDR and IVDR | UK-Specific Regulations |
Political Relations and Tensions
Since Brexit, the UK and the European Union have had a rocky relationship. They face many issues that cause conflict22. The UK leaving the EU also stirred up problems within the UK. For example, Scotland’s effort to break away adds to the tension22.
UK-EU Dynamics and Unresolved Issues
One big issue is the Northern Ireland protocol. Both the UK and EU are finding it hard to agree on a solution22. The UK’s political unrest, like the Conservative Party’s struggles, makes things even harder. This affects how the UK and EU deal with their new circumstances after Brexit22.
The UK and EU are trying to keep working together, despite the difficulties23. In 2017, Prime Minister Theresa May wanted the UK to do lots of global trading and be well-respected23. Then, in 2020, Prime Minister Boris Johnson stressed the UK wanting to control its own laws and future. This was to make it easier to make trade deals23.
But, problems between the UK and EU persist. The EU thinks the UK is not sticking to the Northern Ireland protocol. The UK says the EU is too inflexible. Three US presidents, from Obama to Biden, have had to deal with these issues, showing how complex the situation is22.
Despite these obstacles, some good things have happened. For instance, in June 2021, US and UK leaders signed the New Atlantic Charter. It was meant to strengthen their partnership across the Atlantic22. Yet, Brexit has limited the UK’s role in some security efforts in Europe. Still, agreements have been made with the US in areas like digital economy rules and data protection22.
The UK and EU’s political situation is complex and changing22. Many issues from Brexit still affect their relationship. Both sides will have to work on these challenges to move forward together effectively22.
In June 2016, the UK voted to leave the EU by a slim majority22. By January 2021, the UK ended its transition period after Brexit22. This decision reflected a trend toward putting national interests first, which has strained relations between the UK and EU22.
More recent data shows that over half of Britons now think leaving the EU was a mistake24. If another vote happened today, more than half would want to rejoin the EU24. This suggests that many in the UK wish they could change the decision24.
Regional Impacts within the EU
The impact of Brexit varied across the European Union. Some regions felt it more than others25. After Brexit, Northern Ireland’s earnings did better than the UK’s average. But the South East saw earnings drop25.
Northern Ireland and London had a big rise in job numbers. The North West also had a good outcome25.
The effect on regions due to Brexit hasn’t been a big focus. For example, London saw a decrease after Brexit. This might be due to worries about financial services and relying on workers from the EU25.
However, Northern Ireland saw improvements in both earnings and jobs, better than the UK average. This happened because of the Northern Ireland Protocol25.
With the UK leaving, the EU lost an important and wealthy member. This has changed the power and influence within the EU. Now, the remaining EU countries need to adjust in both the economy and politics26.
The departure of the UK has changed how EU funds are distributed. The European Fund for Regional Development and EU Structural and Investment Funds now play a bigger role in helping regions of central, eastern, and southern Europe26.
As the EU moves forward without the UK, it still thinks about the regions affected. In Scotland, they are looking at the pros and cons of being in the single market. This is in light of the challenges after Brexit25.
| Key Changes Following Brexit in the UK and the EU | Media Commentary 2016-2021 | Legal Implications of Brexit | Opportunities and Challenges for UK Businesses Post-Brexit | Brexit Services and Support by Gowling WLG |
|---|---|---|---|---|
|
|
|
Looking at Brexit, most talks focused on big, far-off economic ideas. Things like independence in handling money and trade were discussed a lot25.
But the direct effects on different places were not talked about as much25.
The EU wants to close the gap in innovation and productivity between its different regions26. The loss of the UK affects how EU funds are shared. This means a change in supporting less-developed areas. The EU will keep working on these challenges after Brexit26.
Future Prospects and Uncertainties
The European Union is now mapping its path without the UK after Brexit28. Many firms see Brexit as a big uncertainty28. The effects are still showing, and both the UK and EU might change their policies, causing more uncertainty28.
In the UK, more people are beginning to regret leaving the EU, according to recent polls28. Despite this, major political parties show little interest in changing their relationship with the EU28.
Potential for Brexit Remorse and Policy Shifts
The unknown consequences of Brexit have made businesses and investors more cautious28. This uncertainty can be seen in the high volatility of the sterling against the euro and the dollar since Brexit happened28.
Investment and spending have gone down as people and companies are waiting to see what will happen next28. Everyone is worried about what the UK and the EU will do to handle the effects of Brexit28.
The EU is working to adjust to life after Brexit28. It’s hard because there’s still so much uncertainty and the chance of policy changes that could shake up the economy and politics28. How well they handle these challenges will be key to what happens in the future28.
| Key Impacts of Brexit | Description |
|---|---|
| Trade and Customs | |
| Financial and Legal Aspects |
|
| Financial Services and Markets |
The EU is still getting used to life without the UK28. Figuring out how to deal with regret and possible policy changes is a big task for both the UK and EU282930.
Conclusion
Brexit changed things for the UK and the EU in big ways. It caused many issues in areas like trade and politics. These changes are still taking shape31. We’re not sure what the long-term effects of Brexit will be yet. The EU is working hard to deal with the new situation without the UK.
As the EU and UK figure out their new relationship, things are still uncertain32. They are setting up groups to help them work together better. But, problems like different effects on regions and the economy are still there31.
The important lessons from Brexit are to stay flexible, ready for change, and find ways to work together. Even though Brexit is over, it’s not the end. The EU is showing that it can deal with big challenges. It’s all about building new partnerships and working toward shared success33.
Source Links
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- https://academic.oup.com/book/31844/chapter/267486661 – Conclusion
