Brexit refers to the referendum held on June 23, 2016, concerning the United Kingdom’s future within the European Union. The term is derived from the earlier concept of Grexit, which pertained to the potential departure of Greece from the Eurozone. In this significant referendum, British voters were asked to respond to the question, “Should the UK remain a member of the EU or leave the EU?” The phrasing of this question was developed by Britain’s electoral commission and subsequently approved by Parliament.
The idea of holding a referendum on this matter emerged during the 2015 general election in the UK. Prime Minister David Cameron pledged to the electorate that, if re-elected, he would give the British people a final say on the issue of EU membership. This promise was made against a backdrop of longstanding divisions within his Conservative Party regarding Euroskepticism and EU membership, which had persisted for approximately 40 years. Many grassroots Conservative members advocated for leaving the European Union due to various concerns about sovereignty, border control, and legal autonomy.
Those in favor of Britain’s exit from the EU argued that the EU’s regulations hindered job creation and that they wanted the UK to have more control over its own laws and trade agreements. Although Parliament in London enacts laws, these can be overruled by the European Parliament and courts in Brussels.
One reason the government decided to hold the referendum in early summer was to conclude the matter before the anticipated summer migration crisis intensified. This migration issue had recently sparked anger and fear among British citizens, who felt they were losing control of their migration policy to the European Union in Brussels. Advocates for leaving the EU wanted the UK to determine its own immigration policy and decide who enters the country.
Conversely, those advocating to remain in the EU believed that staying in the bloc enhanced the nation’s economic, military, and global influence. Remain campaigners argued that Britain’s strength and security, both domestically and internationally, were bolstered by its membership in the world’s largest economic bloc.
The voter base for this historic referendum differed from that of general elections, as any British citizen over the age of 18 was eligible to vote, along with Commonwealth of Nations citizens residing in Britain. This included residents from 53 member nations, such as Canada, Australia, New Zealand, Ireland, Malta, Cyprus, and Gibraltar.
Brexit supporters contended that the European Union had strong incentives to continue trading with the United Kingdom, given its significant imports of goods and services and extensive trade with the bloc. They believed that the UK could negotiate new and better trade agreements with the rest of the world, saving over 8 billion pounds annually in contributions to the EU budget. They envisioned the UK joining Norway, Iceland, and Liechtenstein as a member of the European Economic Area.
Those advocating to remain in the EU countered that leaving the bloc would create substantial uncertainty in British markets, potentially deterring foreign investment and prompting companies to relocate their EU regional or international headquarters.
The Treasury predicted that a recession resulting from leaving the EU could cost households 4,300 pounds per year by 2030, due to job losses, reduced trade, and higher taxes. They also warned of a significant weakening of the pound, leading to increased costs for weekly shopping, travel, and imported goods. Additionally, there were concerns about the status of non-British Europeans living in the UK and British expatriates residing elsewhere in Europe following a potential exit from the European Union.
