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Topic: EconomicsConsumer Science
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Last updated: March 24, 2019

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p2 {margin: 0.0px 0.0px 0.0px 0.0px; font: 12.0px Arial; -webkit-text-stroke: #000000; min-height: 14.0px}span.s1 {font-kerning: none; font-variant-ligatures: no-common-ligatures}In 1951 to prevent wars between the members of European Union and also to help european economy, European Coal and steel Community (ECSC) was formed.

An community existing between the nations based on international law. Two further communities European defence community and a European political community were formed for a federal Europe but was rejected by the French Parliament. In 1955 Paul Henry Spaak prepared Spaak report that would provided basis for treaty of Rome and in 1956 at Val Duchesse conference centre,  Paul Henry Spaak led the Intergovernmental conference on the common market and European Atomic Energy Community(EURATOM or EAEC) which prepared for the Treaty of Rome in 1957. On March 25, 1957, six member states Belgium, France, Italy, Luxembourg, Netherlands and west Germany signed a treaty in rome forming European Economic Community(EEC) and European Atomic Energy Community (EURATOM). European economic community was also called Common market and it can into effect in January 1958. By 1950 because of the old trade laws national markets of Europe were isolated from each other and most of the markets were enjoyed by giant nations like United States of America and Soviet Union.

There was also a fear among the leaders of Europe that there will be conflict of resumption  between states like France and Germany which will result in further diminishing of European economy. In the early years of EEC United Kingdom wasn’t part of EEC. UK applied to be the part of EEC in 1963 but it was rejected by french president Charles de Gaulle because at that time dominating language in the committee was French and France president didn’t want English to replace french as dominating language in the committee and entry of Britain would do that. Finally in 1973 UK was in European Union under Edward Heath. UK was the third poorest country in the committee and because of which it couldn’t pay to the EEC budget and that was start of issues between EEC and UK. Prime Minister at that time Margaret Thatcher talked hard in order to reduce the payment of UK in EEC budget because of the nations financial conditions.

UK then negotiated the contribution they make in EEC which still remains in place today. Negotiation resulted in 20% decrease in the contribution of UK. In 1993, Maastricht Treaty took place in which EEC simply changed it’s name from EEC to EC (European Community). In 1977 prime minister Tony Blair used to believe in strong relations with the rest of Europe and later when Uk’s financial conditions weren’t good prime minister David Cameron veto EU treaty in 2011. David Cameron promised to negotiate with EU and because of the problems Britain was looking forward for Brexit. Despite of all the tries by David Cameron for making Britain stay in EU on June 23rd 2016, UK voted against staying in EU and Against won by 51.

9% to 48.1%. With more than 30 million people voting, the referendum  turnout was 71.8% (BBC News, 2017). Reasons for BREXIT   Immigration factor: Polls suggests that it was one of the biggest reasons why voters decided to leave UK.

Because of too many immigrants in UK, they were putting pressure on jobs and market and it was promised by former prime minister of David Cameron that he will reduce the Immigrants but failed to do so. In early 90s Nigel Farage led anti EU party named The UK Independence Party(UKIP). UKIP mainly focused on the threats coming from immigrants and they used to target muslims a lot. But it was not only muslims that UKIP was targeting also targeting Non muslims as well, for example: Mexicans, Immigrants from far eastern Europe etc believing that immigrants are stealing the British jobs and British jobs should remain to the Britishers. And there were no signs of David Cameron that he will keep his promises so, UKIP believes that BREXIT is the only option for reducing the immigrants.

 Agriculture Issue: In EU budget 40% goes for the agriculture policy, 70% of the lands in UK is owned by less than 6000 people and even though the number of people owning the lands are so less, they are not paying the tax which they should on the lands but instead they are receiving subsidies from government instead. During the period of 2008-2015 there was loss of three million farms and because of this voters couldn’t give their vote in favour of an organisation which doesn’t address all this important matters. Despite of many voices the issue wasn’t taken seriously by the committee. This is also an important factor which resulted voters to vote for BREXIT (Capital & Conflict, 2017).  ECONOMIC DECLINE: Over the years, EU’s contribution in the global GDP has declines drastically. 1973 when Britain joined EU, EU was producing 38% of world’s goods and services , which made them responsible for 38% global GDP, then in 1993 it was responsible 25% of world’s GDP but today it’s just 17%, this clearly means the economy is declining. Reason to this is quite simple because giant economies like India, China and USA were responsible for major global GDP.

In comparison of USA’s contribution, EU had a drop of 55% in contribution but USA in the other hand had a drop of 27% because in 1973 USA’s contribution stood at 30%, which was less than EU but  in 1993 where EU was responsible for 25% of the world GDP, USA was responsible for 27% which is 2% more than EU in 1993 and today where EU is responsible for only 17% of world’s GDP, USA is responsible for 22% which 5% more than EU. This is because divergence in prosperity resulting from monetary policy and single currency. 

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