An Update on Brexit

On October 14, 2019, the United Kingdom’s Parliament was reinstated after a 5-week suspension. Prime Minister Boris Johnson is persistent in wanting the UK to secede from the European Union. During the Parliament disbandment, the Prime Minister was able to secure a deal, The Withdrawl Agreement Bill, with the European Union. Prime Minister Johnson wanted to put it through Parliament quickly and finally go through with Brexit. Parliament voted and approved the Bill, securing Brexit to go through in a week. But, Prime Minister Johnson told the House of Commons to vote on the Bill in a matter of hours. The House of Commons refused. Due to this refusal, the Bill now looks as though it won’t pass, so Prime Minister Johnson is calling for a general vote to re-elect Parliament. Prime Minister Johnson’s plan is to win a majority in Parliament and pass Brexit without a deal. With this Brexit scare seeming even more realistic every day, many companies around the world are making plans on what they will do when the UK finally secedes from the EU.

Panasonic is a Japanese company that is currently moving its Headquarters from London to Amsterdam, which will move thousands of British jobs. The company does not want to become subject to the high tax and import/export rates that are expected to come out of Brexit, and they are not alone. 

Philips is currently shutting down factories in Glemsford and Suffix, UK, moving those 430 jobs to the Netherlands. Phillips has threatened to move 500 more jobs if Brexit happens without a favorable deal. And this is only one example of what many companies are starting to do. The fear of Brexit is affecting average people as the unemployment rates jump to 3.9% due to companies leaving. 

The UK economy is suffering from only talks of Brexit. The Pound’s worth is down 18% since the referendum 3 years ago. The inflation rates rose substantially this past January to 2.8%, which is still brought up in many discussions regarding if the UK should still leave the EU. The housing prices are also falling, leaving many economists with fear of a recession. 

Brexit is going to create a shift in the global economy. Currently, it is creating instability in the European market and European people. The real effects of Brexit have yet to occur, but keeping an eye on their unstable economy, we will begin to see the problems that continue to arise.