Britain still troubled after EU exit


Great Britain

Jack Girard

Two months out and the British leaving the European Union, Brexit for short, is still causing tremors. The Prime Minister of England resigned in the days following, the pound is attempting to recover, the terms are just starting to be touched on, and interest loans on banks have been cut in half. Needless to say, it’s been a busy few months for Britain. 

David Cameron, former Prime Minister of England, decided to leave the office based on the stance that Britain wanted something fundamentally different than he did. 

He was an ardent Remain campaigner and held friendly ties with many EU leaders. Cameron also held a negative view of both American presidential candidates. Theresa May was elected his replacement after her contender dropped out.   

The pound, their currency, is at seventy-six percent of its pre-Brexit value. Naturally, that leads to a raise in prices and a drop in consumer confidence. Both are attempting to recover but markets are at their worst at times of uncertainty and Britain is redefining their rules. 

However, the falling pound has made tourism less expensive and has helped the higher end areas of Britain. 

As the first country every to leave the EU, England has to blaze a new trail. Of the now forty three different countries that the EU is composed of, Britain has traded with them openly for years and has to renegotiate terms that were originally set by the EU. Given May’s appointments of Brexit leaders and the nationalism the Brexit came in on, the deals will likely be as Britain centered as possible. 

It takes two years to for Article 50 of the Libson treaty, the leave article part of the treaty which the EU was found on, to take full effect. 

Lastly, Britain has tried to take an active step in moving consumer confidence forward by cutting interest rates from state controlled banks. Rates usually at half a percent are cut down to a quarter percent. It doesn’t sound like much, but it spreads money further down at lower levels than a simple tax cut would. 

Anyone who has taken out a housing loan will have extra spending money on hand. On the downside, bank bonds and pension funds will take a blow.