June 24, 2016

BREXIT WINS!



Supporters of the Vote Leave campaign celebrated as they walked through Parliament Square in London on Friday.CreditAnthony Devlin/Press Association, via Associated Press

NY TIMES

  • The outcome reflected populist sentiment and is sure to have far-reaching effects on Britain’s place in the world and the future of the E.U.
  • David Cameron says he plans to resign as prime minister of Britain after the country’s decision to leave.

Britain’s vote to leave the Europe Union kicks off a fraught and unpredictable process likely to spook investors around the world. 


Prime Minister David Cameron outside 10 Downing Street in London, a day after Britain voted to break out of the European Union. CreditOdd Andersen/Agence France-Presse — Getty Images

The stunning turn of events was accompanied by a plunge in the financial markets, with the value of the British pound and stock prices in Asia plummeting.
Currency dealers monitoring exchange rates at the KEB Hana Bank in Seoul, South Korea, on Friday.CreditJung Yeon-Je/Agence France-Presse — Getty Images
The margin of victory startled even proponents of a British exit. The “Leave” campaign won by 52 percent to 48 percent.
Britain will become the first country to leave the 28-member bloc, which has been increasingly weighed down by its failures to deal fully with a succession of crises, from the financial collapse of 2008 to a resurgent Russia and the huge influx of migrants last year.
 Nothing will change immediately on either side of the Channel, with existing trade and immigration rules remaining in place. The withdrawal process is expected to be complex and contentious, though under the bloc’s governing treaty it is effectively limited to two years.
For the European Union, the result is a disaster, raising questions about the direction, cohesion and future of a bloc built on liberal values and shared sovereignty that represents, with NATO, a vital component of Europe’s postwar structure.
The loss of Britain is an enormous blow to the credibility of a bloc already under pressure from slow growth, high unemployment, the migrant crisis, Greece’s debt woes and the conflict in Ukraine.
“The main impact will be massive disorder in the E.U. system for the next two years,” said Thierry de Montbrial, founder and executive chairman of the French Institute of International Relations. “There will be huge political transition costs, on how to solve the British exit, and the risk of a domino effect or bank run from other countries that think of leaving.”
Europe will have to “reorganize itself in a system of different degrees of association,” said Karl Kaiser, a Harvard professor and former director of the German Council on Foreign Relations. 
With net migration to Britain of 330,000 people in 2015, more than half of them from the European Union, Mr. Cameron had no effective response to how he could limit the influx. And there was no question that while the immigrants contributed more to the economy and to tax receipts than they cost, parts of Britain felt that its national identity was under assault and that the influx was putting substantial pressure on schools, health care and housing.
Residents of the Castle Point borough of Essex in England celebrated the queen’s 90th birthday this month. Castle Point is the most ethnically English part of the United Kingdom, with nearly 80 percent describing themselves as purely English, while 95 percent are white. CreditAndrew Testa for The New York Times
The campaign run by one of the loudest proponents of leaving, the U.K. Independence Party, flirted with xenophobia, nativism and what some of its critics considered racism. But the official, more mainstream Leave campaign also invoked immigration as an issue, and its slogan, “Take control,” resonated with voters who feel that the government is failing to regulate the inflow of people from Europe and beyond.
The British campaign featured assertions and allegations tossed around with little regard to the facts. Both sides played to emotion, and the most common emotion played upon was fear.
The “Remain” side, citing scores of experts and elite opinion, warned that leaving the bloc, a so-called Brexit, would mean an economic catastrophe, a plunging pound, higher taxes, more austerity and the loss of jobs.
The Leave side warned that remaining would produce uncontrolled immigration, crime and terrorism, with hordes pouring into Britain from Turkey, a country of 77 million Muslims that borders Syria and Iraq and hopes to join the European Union.
Nigel Farage, the U.K. Independence Party leader, who favors leaving the European Union, recently unveiled a poster showing a parade of brown-skinned migrants.CreditFacundo Arrizabalaga/European Pressphoto Agency
In England especially, 85 percent of the population of Britain, many people fell back on national pride, cultural exceptionalism and nostalgia. Many English voters chose to believe the insistence of anti-Europe leaders like Boris Johnson, the former mayor of London and potential challenger to Mr. Cameron, that as a great nation, Britain would be more powerful and successful outside the European Union than inside.
In Scotland and Northern Ireland, by contrast, there was a strong pro-Europe feeling that has only increased tensions within the United Kingdom itself.
With this result, those who favor Scottish independence will have a new wind for another referendum, even if they may wish to wait until they are sure to win one.
 Previous Mayor of London Boris Johnson is the highest-profile Tory to have defected from the campaign, led by Prime Minister David Cameron, to keep Britain inside the European Union. CreditReuters



Decades of Euroscepticism and ministerial rebellion led to Britain’s self-ejection from a union that voters never fully embraced

Britain’s self-ejection from Europe is the culmination not just of four months of heady campaigning but four decades of latent Euroscepticism, which, through good times and bad, never really went away.
Campaigners have agitated for EU withdrawal ever since the UK joined the common market in 1973. Labour’s official policy for the next decade was to quit, and a sizeable proportion of Conservatives have never been comfortable Europeans.
The issue hounded John Major’s premiership, lay dormant through the Tony Blair years before rearing its head once again as the economy turned sour at the end of the last decade.
David Cameron was keen to move his party away from “banging on about Europe” after he become leader. But once in Downing Street, he found it impossible to resist pressure from his backbenchers to call a poll as the idea of leaving the EU gained wider traction in the country with the rise of Ukip, populist rage against remote elites and discontent about immigration.
The prime minister finally committed to an EU vote in January 2013 with what has become known as his Bloomberg speech, promising to renegotiate and then call a referendum by the end of 2017. Those familiar with his thinking at the time say Cameron had what was, in hindsight, an overoptimistic belief that he could lance the boil of Tory Euroscepticism by making such a promise.
Polling suggests discontent with the scale of migration to the UK has been the biggest factor pushing Britons to vote out, with the contest turning into a referendum on whether people are happy to accept free movement in return for free trade.
Public unease has been fuelled by a failure to prevent immigration from piling pressure on jobs markets and public services, and a refusal by politicians to acknowledge the sheer numbers of Europeans making new homes in the UK.
Cameron promised before the 2010 election to bring migration down to the tens, not hundreds, of thousands. However, his failure to live up to his promise, repeated in 2015, has undermined trust in his leadership and contributed to a sense that UK politicians are powerless to lower migration from the EU.
The other force that welled up during the campaign was a wholehearted distaste for the thing that Brussels had become in the 40 years since Britain last voted in a referendum on its place in Europe.
 The leave camp argued that Brussels has been on a mission to expand its powers and sought further political integration, which is far removed from what the UK originally voted for. Voters appear to have decided that this was their one chance to leave a union they never particularly embraced and did not consent to in the first place.
Homes for workers on land owned by Staples Vegetables, which supplies produce to supermarkets across Britain and Europe. Many of the workers are immigrants from Eastern Europe.CreditAndrew Testa for The New York Times
It should not be forgotten that the referendum came at a time when populist revolts against elites were gaining momentum, from Eurosceptic parties in France, Germany, Austria and Scandinavia. The leave campaign has throughout painted the EU and Brussels officials as a hotbed of unaccountable political elites who were not democratically voted by the British people.
Shops that were shuttered a decade ago have reopened as businesses catering mainly to Eastern Europeans. CreditAndrew Testa for The New York Times
Despite MEPs being elected and leaders on the EU council each having their own mandates, it has become a tenet of Euroscepticism that the union is too remote from the people it is governing. Brexit campaigners frequently cited the “five presidents” of Europe, who they claimed no one had ever heard of, and pointed out that the unelected European commission proposes laws that end up passed by the parliament.
David Cameron overplayed his hand on EU reform when he raised hopes that he might be able to curb free movement in an FT article in November 2013. He aimed high but quickly had to water down what he was seeking from other EU leaders who were not prepared to open up the fundamental principle.
Cameron tried to make the best of his renegotiation, hailing it as a major success that he got the 27 other member states to agree. However, the process ended up cementing the impression that Brussels was inflexible and unwilling to make big concessions to keep Britain in the union.
Brexit, a term coined in 2012 before becoming mainstream political currency last year, moved from being a niche obsession to a victorious, mainstream political movement.