By Beth King & Jordan Davidson
Britain has voted to become the first nation ever to leave the European Union since its conception, but what happens now?
David Cameron will address Parliament on Monday and discuss the period for negotiating the terms of the departure from the EU. The process of leaving the EU will likely take a minimum of 2 years.
Meanwhile, The London Stock Market opens for trading at 8am on June 24 and will likely be in chaos as it adjusts to the change and drop in the value of the pound.
Trade with European partners will not end, however…
The tariff-free trading that Britain enjoyed as a member of the European Union, will no longer be available to us.
Angela Merkel, the German Chancellor, warned that Britain would be treated as a “third party” in the event of a Brexit vote, and would no longer have access to the Single Market.
Moreover, Britain’s new relationship with the EU will need to be renegotiated and David Cameron plans to meet with the remaining 27 members at a summit on June 28.
What this means for the North East is not yet certain, however government statistics show that around 100,000 jobs in the North East are linked to exports to Europe.
Independent experts at the Centre for Economic and Business Research claim that: “Exports to the EU are more important for the North East than they are for any other region, and the North East would also be the hardest hit by new trade barriers, with car manufacturing one of the worst hit sectors.”
Furthermore, Stronger in Europe told the Chronicle: “If we were to leave, large employers in the North East, including businesses such as Nissan, would be hit with trade barriers and could see exports fall and jobs lost, with higher prices in the shops.”
However, Business for Britain say: “the North East will stop sending £496m to the EU each year. This money would be better spent on our priorities, or reducing the tax burden. We will also no longer be liable to bailout failing eurozone states, ending the threat of future tax rises.”
How will the EU do without us?
On Saturday, the foreign ministers of France, Germany, the Netherlands, Luxembourg, Italy and Belgium will meet to discuss the implications of the referendum result.
President of the European Commission, Jean-Claude Juncker has said: “I don’t think the EU will be in danger of death if Britain leaves. We will continue the process of closer cooperation in Europe, if not of deepening the EU, and mainly the economic and monetary union.”
However, several critics believe that the successful exit vote will inspire other nations to do the same.
Another Scottish referendum could be on the cards
Nicola Sturgeon is known to have ordered contingency plans for a second independence referendum in the event of a Brexit:
“All options to protect our relationship with Europe and the European Union will require to be considered”.
Travel to EU countries will become more expensive
The cost of a family summer holiday to popular EU destinations, such as the Mediterranean, could rise by £230.
Low-cost airlines, such as Easyjet and RyanAir are a product of the EU’s efforts to remove the restrictions on air service agreements and introduced more open competition on routes between Union countries.
The success of the low-cost carriers (such as Easyjet and RyanAir) and the impact they have made on reducing fares and opening up new routes would not have happened in the way it has if the EU had not been at the forefront of removing the old restrictions on air service agreements and introduced more open competition on routes between Union countries.
Moreover, Michael O’Leary, Ryanair’s chief executive, has stated that in the event of a Brexit fares are likely to increase and may “lead Ryanair to move some of its investments out of Britain”.
Fewer EU travel health benefits:
People travelling within EU countries have access to a European Health Insurance Card. This entitled UK citizens to free, or reduced-cost, treatment in other EU countries.