To understand Brexit, we have to first understand the European Union. What is it and why is it on Earth?
It is assumed that those countries who trade with each other are less likely to go to war with each other. And this assumption brought the idea of European Union.
The EU traces its origins from the European Coal and Steel Community (ECSC) and the European Economic Community (EEC), established, respectively, by the 1951 Treaty of Paris and 1957 Treaty of Rome. To understand it in an easy way, imagine that every country in EU is a state and EU itself a country like India (Coincidentally EU has 28 countries in it, similar to us but one less). Citizen of any country can travel, live and work freely in any other country in the European Union. The trade market is open to all without any additional taxes and many other suitable facilities.
And to be in this Union there were several rules to be followed i.e :
1. Giving fees to the European Union for maintenance of Trade affairs and other activities according to the respective overall GDP of that country. Suppose in a Gully cricket match if Germany brings wickets, Greece would have to bring bails and UK would have to contribute with Bat.
2. Accepting one currency as whole European currency. Which means that the UK would have to ditch Pound and adopt Euro as currency.
3. Every member has to abide by the laws made by European union council. Like laws related to accepting migrants and many more.
So, lets come to Brexit i.e Britain Exit.
This term originated when former UK PM David Cameron held referendum and majority of people voted in favor of leaving EU.
This came as a surprise and David Cameron who was against leaving EU, resigned.
But why UK wants to leave EU?
There are several reasons which are as follows :
1. The UK was always a spoilt kid who wanted to bat first all the time but argued to follow all the rules. They were against accepting migrants cause then they have to provide social welfare schemes to all without getting any expansion in their tax collection. Plus they cited National security issue just like we in India are citing against Rohingya Muslims.
2. They would have to adopt Euro as a currency which is weaker than their own Pound.
3. The European Central Bank’s disastrous handling of the post-2008 recession caused sky-high unemployment in Greece and Spain and this made the UK more cautious about several other economic laws.
And because of these several points surrounding the environment, Brexit has been justified. Nobody is able to predict the exact consequences of this Brexit but everyone is scared since it involves economies of several nations, which will get affected.
PS: This article is not detailed and just an overview with simplified points. If you want to know about it in detail then click on the links given below.