Brexit Current Affairs

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Brexit word added in Oxford English Dictionary    

The Oxford English Dictionary (OED) has officially added word ‘Brexit’ in it. It is among 1,500 new words added to the OED.

The OED has defined word ‘Brexit’ as “the (proposed) withdrawal of the United Kingdom from the European Union, and the political process associated with it”.

Another popular new coinage is the word ‘YouTubers’ was also added in OED. It has been defined as “frequent user of the video-sharing website YouTube, especially someone who produces and appears in videos on the site.”

Background

The word Brexit was used first after then Prime Minister David Cameron announced in 2013 that UK will hold a referendum on its EU membership. But it entered common parlance as campaigning Brexit intensified before citizen of Britain vote to leave EU in June 2016. The word Brexit has been developed from “Grexit” which describs a similar process in which Greece might leave the Eurozone. Grexit was added in OED, calling politics “a fruitful area for new words”.

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Brexit: IMF warns of repercussions for global economy

The International Monetary Fund (IMF) has warned that United Kingdom’s decision to leave the European Union (EU) has created significant uncertainty.

The uncertainty is likely to dampen growth in the near term, particularly in the UK, but with repercussions for Europe and the global economy.

Key facts

  • IMF predicts that macroeconomic and financial market impacts in the UK and EU due to Brexit will radiate outward across the globe.
  • The impacts of Brexit will lead to a rising level of uncertainty, both financial and possibly political in EU and UK.
  • IMF has urged policy makers to remain prepared to act to counter financial market turbulence and higher uncertainty to materially weaken the global outlook.
  • Prolonged periods of uncertainty and associated declines in business and consumer confidence due to Brexit would lead to lower growth.
  • IMF has urged policymakers in EU and UK to play key role in helping to reduce the uncertainty during this period.
  • It also has encouraged UK and EU to work together with a sense of collaboration in an effort to effect a predictable and smooth transition.
For more details: Brexit

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United Kingdom in historic referendum votes to exit European Union

People of United Kingdom (UK) in a historic Brexit referendum have voted in favour of leaving European Union (EU).

In the Brexit referendum, the ‘Leave’ side won decisively by securing 51.9% of the total votes overturning ‘Remain’ side which secured 48.1% votes.

This is the second referendum on UK’s relationship with the EU. In 1975, in a referendum on whether the UK should stay or leave the EU, the country voted for staying with 67.2% votes.

After results were declared UK Prime Minister David Cameron, the architect of the referendum and a passionate supporter of UK within the EU, announced stepping down as Prime Minister in October 2016.

What now?

The vote to leave the EU now has triggered a two-year ‘withdrawal process’ which will determine the future of UK’s relationship with the EU. At the end of withdrawal process, UK exits the single market, then EU countries will start imposing tariffs on British products.

Why UK wants to leave the EU?

  • Many in the UK think that the EU has transformed a lot over the years.
  • Since formation of EU, several countries have joined it and UK thinks that since then EU’s hold over everyday aspects of these countries has increased.
  • Many think that Britain is shelling out billions of pounds every year in the form of EU fees without much gain in return.
  • UK also thinks that EU’s some constraints have imposed many opposing rules on Britain’s business.

What does UK’s exit means?

  • Henceforth UK will be able to secure independent trade deals with important countries such as India, China and US.
  • Thus, it can have a stronger influence for free trade and cooperation with other countries as in EU it was having independent influence.
  • Now it will have control over wide areas like employment, health, law and safety and immigration policies.
  • UK can also save billions of EU fees and use it for scientific researches and for building new industries.

What critics believe?

  • By leaving EU, UK would not be able to obtain better trade terms with other countries. It would face problems with different regulations of EU.
  • Leaving EU will not help UK to reduce immigration as countries that trade with EU from outside have higher rated of immigration, including from EU countries.
  • Other EU members may call for independent protectionism and ultra-nationalism which in recent times is getting hardened across the world.

Impact on India

  • UK’s exit from the EU will affect the flow of FDI (Foreign Direct Investment) in India over the short-medium term and the long term periods.
  • In short-medium term period FDI may decrease temporarily and potentially led to financial instability and a legal regime overhaul. In the long-term FDI may fall.
  • Many Indian information technology (IT) companies based in the UK with large work forces that offer services to Europe Union member countries will be hit.

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