Uk votes brexit: In the early morning on 24 June it was confirmed that the UK has voted to leave the EU. The vote for the Brexit, although it won, was not exactly unanimous; actually, the Country is divided in two parts almost equal: 53.4% for leave and 46.6% for remain.
Scotland and Northern Ireland both backed staying in the EU. Scotland backed remain by 62% to 38%, while 55.8% in Northern Ireland voted remain and 44.2% leave. Because of the results of the referendum, the UK is now involved in a dangerous political chaos. In a statement outside Downing Street the Prime Minister David Cameron said that the government would respect the results and carry out the instructions of the British people, but at the same time he announced he would step down in the autumn as he was not the right “captain to steer the country to its next destination”.
In a first moment after uk votes brexit, Cameron resignation the former mayor of London Boris Johnson was tipped to run in the conservative leadership race but despite the strong campaign he carried out in favor of the Brexit, he took a step back saying he is not the right man for this assignment. Anyway, a new Conservative leader and prime minister is expected to be elected by 9 September of this year. However, the Brexit repercussions affect not only the political area; we have to talk about the economy.
UK votes brexit: The stock market consequences
The stock market reaction to the referendum result was immediate and dramatic, it suffered strong losses but only for few days, then there has been a slow recovery. The value of the pound has also been hit hard on the foreign exchange markets, tumbling to lows not seen since 1985. So, the financial shock has been limited and not so catastrophic as it was expected. Bank of England governor Mark Carney said that the Bank is well prepared to face some market and economic volatility.
For commercial markets, it is still too early to make any predictions about, estimations will be possible in not less than a couple of years. And the same is for the real exit of the UK from the European Union, yes, because it will not leave immediately. The UK is still a member of the EU and will probably remain so for several years. There is a formal legal process for withdrawing from the EU, enshrined in Article 50 of the 2009 Lisbon Treaty, although it has never been invoked before.
Mr. Cameron said it should be up to his successor to decide when to activate Article 50 by notifying the European Council. Once this happens, the UK is cut out of the EU decision-making the highest level and there will be no way back unless by unanimous consent from all other member states.
Quitting the EU is not an automatic process – it has to be negotiated with the remaining 27 members and ultimately approved by them by qualified majority. These negotiations are meant to be completed within not less than two years although many believe it will take much longer. The European Parliament has a veto over any new agreement formalizing the relationship between the UK and EU.