The British government believes the legal process required to trigger a divorce from the European Union, known as Article 50, does not legally require parliamentary approval, a government minister said on Monday. A national referendum was called and to Cameron’s disbelief, the British public voted to pull out of the EU.
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Hans Joerg Schelling said a “fast decision” should be made by Britain’s new prime minister, Theresa May, while warning of the economic impact from the UK’s vote to end its role in the EU.
The June referendum expresses the will of the people but the actual process of leaving the EU only occurs with an act of Parliament.1 If Parliament fails to approve a formal decision to exit the EU, known as invoking Article 50 of the EU charter, Brexit won’t occur. Britain comprises approximately one-sixth of the EU’s economy, and a resulting destabilization has the potential to alter the USA economy. It is quite possible an Article 50 vote will fail and Brexit, despite the referendum, won’t occur.
In a recent statement, the Fed pronounced, “The Federal Reserve is carefully monitoring developments in global financial markets, in cooperation with other central banks, following the results of the United Kingdom referendum on membership in the European Union”.
U.K. Business Secretary Sajid Javid has traveled to India to kick off talks, which will include a discussion of what kind of trading relationship the two countries will have once Britain leaves the EU.
The Commission’s previous GDP growth forecast was 1.8% for this year and 1.9% for next year.
It is predicted that there may be attempts by the countries that constitute Britain to disagree with or defy the secessionist move by Britain from the EU. People are concerned about the big issues affecting them and how the European Union is trying to make their lives better; they do not particularly care about how many directives are issued by the European Union, nor do they want to listen to technical bureaucratic language when hearing about the EU. “What is clear is that in the short term uncertainty will lead to a dip in market confidence”, he added. With British exit from the EU, Ghana’s trade relations with Britain and the EU will seriously be punctured. Already Scotland voted in favour of European Union membership.
What the final arrangements between Britain and the European Union will look like are anyone’s guess right now.
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Delivering opening remarks at the World Economic Forum in Tianjin, China, Chinese Premier Li Keqiang said that the impact of the vote was being felt worldwide and would increase global uncertainty and make it more hard for the global economy to rebound. I was recently surprised by a friend of mine, who has a professional background, who told me, “The European Commission should stop imposing laws on EU countries”.
