Professional Documents
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MITHAPUR, PATNA-800001
SUBMITTED TO:
SUBMITTED BY:
SEMESTER- Ist
DECLERATION BY THE CANDIDATE
I, AAYUSH KUMAR, student of Chanakya National Law University, hereby declare that
the work reported in the BBA LL.B (Hons.) Project Report titled “BREXIT AND ITS
IMPACT” submitted at Chanakya National Law University is an authentic record of my
work carried out under the supervision of Mr. VIJAYANT SINHA. I have not submitted
this work elsewhere for any other degree or diploma. I am fully responsible for the contents
of my Project Report.
(SIGNATURE OF CANDIDATE)
SEMESTER : 1st
I would like to thank my faculty Mr VIJAYANT SINHA whose guidance helped me a lot
with structuring my project.
I would also like to extend my gratitude to my parents and all those unseen hands that helped
me out at every stage of my project.
THANK YOU,
SEMESTER – 1ST
Index
1. Brexit: Introduction
2. The European Union: An introduction
3. Article 50 of the Lisbon Treaty
4. The UK and the EU
a. UK’s accession to the EU
b. The 1975 Referendum
c. Maastricht Treaty
i. Establishment
ii. Members
iii. Foundation for Euro
iv. Rules on how Euro will work in practice
v. European Integration
d. Brexit
5. Legal Process Behind Brexit
6. Effects of Brexit
a. UK
b. EU
7. Conclusion
8. Bibliography
1. Brexit: Introduction
On 23rd June, 2016, a referendum - a vote in which everyone (or nearly everyone) of voting
age can take part - was held in the UK, to decide whether the UK should leave or remain in
the European Union. Leave won by 51.9% to 48.1%.1 The referendum turnout was 71.8%,
with more than 30 million people voting. This exit of the UK, or Britain, from EU is called
Brexit. Following the voting, on 24th March, 2017, the Government of the UK sent a letter to
the President of the European Council to invoke Article 50 of the Treaty on European Union,
starting a two-year process which was due to conclude with the UK's exit on 29 March, 2019.
That deadline has since been extended to 31 October 2019.
Below are a few key dates in the history of the EU/Great Britain relationship.
June 23, 2016: The Referendum was held and 52% of voters voted to leave the EU.
That vote was just about What to do. The How is heavily focused on Article 50 of
the Lisbon Treaty which when invoked, is when the negotiations between the EU and
the UK on the terms of the exit begin.
1
https://www.bbc.com/news/uk-politics-32810887
March 14, 2017: The British Parliament passed a bill that will allow Prime Minister
Theresa May to start talks to leave the European Union.
March 28, 2017: The UK signed the letter that triggered Article 50 of the Lisbon
Treaty which is the beginning of the 2-year legal process for Britain to leave The EU.
June 19, 2017: The formal negotiations began for the UK to leave the European
Union.
November 14, 2018: It was announced that UK cabinet ministers had agreed to a
draft agreement on the terms of the United Kingdom’s exit but this was followed by a
series of ministerial resignations and it still has to be voted on in Parliament though
the EU has tentatively scheduled an emergency summit for the end of November.
January 15, 2019: The BREXIT vote on the government's plan was rejected by
Parliament 432 to 202.
March 12, 2019: The BREXIT vote on the government's plan was rejected by
Parliament for a second time 391 votes to 242.
March 13, 2019: Parliament voted to reject leaving the European Union without a
deal.
March 14, 2019: Parliament voted for a delay in BREXIT but rejected a second
referendum.
March 22, 2019: The British Prime Minister was able to secure a delay of BREXIT.
The new date is April 12 (with a possible extension to May 22) if Parliament approves
the delay by the end of the following week.
March 29, 2019: The BREXIT vote on the government's plan was rejected by
Parliament for a third time 344 votes to 286.
April 10, 2019: A new deadline of October 31 was approved but if a plan is approved
prior to that date, the extension would be terminated.
September 4, 2019: Parliament rejects the Prime Minister’s call for new elections but
did pass a bill forcing the Prime Minister to ask the E.U. to delay BREXIT until
January if there is no exit agreement.
The researcher tends to analyse as to what factors led to the UK deciding to exit the EU.
HYPOTHESIS:
The researcher tends to presume that factors such as sovereignty, economy, fiscal
consolidation and immigration played a major role in the UK deciding to leave the EU.
RESEARCH QUESTIONS:
Q2. What were the major events that took place since UK joined EEC?
LIMITATIONS:
Owing to the large number of topics that could be included in the project, the scope of this
research paper is exceedingly vast. However in the interest of brevity, this paper has been
limited to the topics concerned with the events surrounding Brexit.
RESEARCH METHODOLOGY:
The researcher has adopted Doctrinal method of research to complete the project. Doctrinal
Research includes the library study. The researcher will be using both Primary and Secondary
sources of data to complete the project.
SOURCES OF DATA:
The European Union (EU) is an economic and political union of 27 member states which are
located primarily in Europe. Its capital is Brussels (de facto). The EU operates through a
system of supranational independent institutions and intergovernmental negotiated decisions
by the member states. Important institutions of the EU include the European Commission, the
Council of the European Union, the European Council, the Court of Justice of the European
Union, and the European Central Bank. The European Parliament is elected every five years
by EU citizens.
The EU traces its origins from the European Coal and Steel Community (ECSC) and the
European Economic Community (EEC), formed by the Inner Six countries in 1951 and 1958
respectively. In the intervening years the community and its successors have grown in size by
the accession of new member states and in power by the addition of policy areas to its remit.
The Maastricht Treaty established the European Union under its current name in 1993. The
latest amendment to the constitutional basis of the EU, the Treaty of Lisbon, came into force
in 2009.
The EU has developed a single market through a standardised system of laws which apply in
all member states. Within the Schengen Area (which includes 22 EU and 4 non-EU states)
passport controls have been abolished. EU policies aim to ensure the free movement of
people, goods, services, and capital, enact legislation in justice and home affairs, and
maintain common policies on trade, agriculture, fisheries and regional development. A
monetary union, the eurozone, was established in 1999 and is composed of 17 member states.
Through the Common Foreign and Security Policy the EU has developed a role in external
relations and defence. Permanent diplomatic missionshave been established around the world.
The EU is represented at the United Nations, the WTO, the G8and the G-20.
With a combined population of over 500 million inhabitants, or 7.3% of the world
population, the EU, in 2011, generated the largest nominal world gross domestic product
(GDP) of 17.6 trillion US dollars, representing approximately 20% of the global GDP when
measured in terms of purchasing power parity. The EU was the recipient of the 2012 Nobel
Peace Prize.2
2
3. Article 50 of the Lisbon Treaty
Article 50 is the only legal mechanism for a member state of the European Union (EU) to
leave. A short paragraph in the Lisbon Treaty agreed by all EU member states in 2009, it sets
out the steps a country needs to go through to withdraw from its treaty obligations.
Article 50 TEU does not set down any substantive conditions for a Member State to be able
to exercise its right to withdraw, rather it includes only procedural requirements. It provides
for the negotiation of a withdrawal agreement between the EU and the withdrawing state,
defining in particular the latter's future relationship with the Union. If no agreement is
concluded within two years, that state's membership ends automatically, unless the European
Council and the Member State concerned decide jointly to extend this period.
4. The UK & The EU
During the first accession negotiations in 1961, the Conservative-led British Government had
laid down a number of conditions, since it wanted to preserve the UK’s privileged economic
and monetary relations with the Commonwealth countries. Labour politicians were equally
concerned at the prospect of throwing away the achievements of the Commonwealth for a
Europe that was, in their view, largely capitalist. There were also many who feared that they
would see the price of Commonwealth imports soar because of the disappearance of the
imperial preference system. Senior British politicians were also careful to reassure their
partners in the Dominions, who were very worried that they would find themselves
henceforth relegated to the second rank of British concerns. For that reason, the
Commonwealth Industries Association, a powerful employers’ organisation, conducted a
vigorous campaign against the British application for accession.
But by the late 1960s, links between the United Kingdom and the Commonwealth had been
considerably weakened. Whilst the Commonwealth countries still provided 48 % of British
imports and took 49 % of its exports in 1954, by 1972 the UK was importing a mere 19 % of
its goods from the Commonwealth, which, moreover, was taking no more than 20 % of
British exports. During the same period, the European Community was tending more and
more to replace the Commonwealth share of United Kingdom outward investment. In
addition, political and strategic links between the UK and the countries of the former British
Empire, despite a traditional sentimental attachment, continued to decline during the 1960s.
Accordingly, British negotiators took a more flexible line and, this time, laid down fewer
conditions to be met by their future European partners. The United Kingdom’s decision to
accede to the European Economic Community (EEC) was taken on both economic and
political grounds. The British were well aware that, having virtually abandoned the imperial
dimension of their foreign policy, it could no longer stand isolated from the Community
which was, in contrast, becoming more and more assertive on the international scene. It was
also increasingly difficult to reconcile the UK’s privileged relationship with the United States
with its closer involvement in European affairs. At the same time, the constant economic
growth of the Six made the EEC more attractive day by day. For its part, France was now
more favourable to British accession to the EEC since it was looking for some way of
balancing German power in Europe by relying on British support.
The most hotly debated issues were the United Kingdom’s financial contribution to
Community resources and its participation in the common agricultural policy (CAP). These
problems, which were closely linked, were never properly clarified. As a result, the Thatcher
Government would return to them in the late 1980s. By contrast, a definitive solution was
found for the other stumbling-blocks, namely West Indian sugar and New Zealand butter.
During the summer of 1971, Edward Heath’s Government pursued an intensive propaganda
campaign in the UK in favour of accession to the Common Market. On 7 July 1971, the
Government published The United Kingdom and the European Communities, a White Paper
which reviewed the advantages of British accession to the EEC on a point-by-point basis.
On 1 January 1973, twelve years and two vetoes after the first bid for entry was launched, the
UK formally became a member of the European Communities (though commonly referred to
at the time, and for the remainder of this article, as the ‘Common Market’, the Community or
the EC). While membership of the Common Market had been pursued by governments of
both political colours since 1961, within two years of joining, the question of the UK's
membership was put to the country in what was the first nationwide referendum in the UK's
history. The referendum was the by‐product of internal dissent within a Labour party that was
divided between supporters (of which Roy Jenkins was a prominent member) and opponents
(led by Tony Benn, Barbara Castle, Michael Foot and Peter Shore).
The Wilson Government in 1967 had applied for entry to the Community, only to then be
rebuffed by de Gaulle (as he had done with Macmillan's bid in 1963), and finally launched
the third (and successful) application, following de Gaulle's death, in 1969. However, after
Labour's defeat at the 1970 general election at the hands of the determinedly pro‐European
Ted Heath, senior Labour figures such as Harold Wilson, James Callaghan, Denis Healey and
Tony Crosland all became far more equivocal in their support for entry, while the party
conference in October 1971 saw delegates, in the words of Roy Jenkins, vote by a
‘predictably massive majority against entry on the terms negotiated’.
With Wilson and Callaghan—neither of whom were enthusiastic pro‐Europeans at the best of
times—shifting their positions, and with the vote of the party conference fresh in their minds,
the party leadership put down a three line whip against the terms of entry negotiated by the
Heath administration. This prompted sixty‐nine pro‐Europeans, led by the party's deputy
leader, Roy Jenkins, to defy the whip and vote with the government.
Amid these tensions arose the idea of a referendum on membership of the Common Market.
An idea championed by Tony Benn, whose position on the European question had evolved
from supporting to opposing British membership, a referendum was initially rejected by his
colleagues. However, by the spring of 1972, a referendum, once described Callaghan as a
‘rubber dinghy into which we may all have to climb’ had become Labour party policy. This
initially took the form of seeking to amend the European Communities Bill so as to make its
implementation dependent on a successful referendum. However, with the successful passage
of the Bill in 1972 and the UK's entry in 1973, the party's position shifted to support a
renegotiation of the terms of entry that would then be put to the public either at a referendum
or a general election.
Following the inconclusive February 1974 election and the establishment of a minority
Labour administration, the process of renegotiation began under the direction of the new
Foreign Secretary, James Callaghan. After two key rounds of discussions—at Paris in
December 1974 and the European Council meeting in Dublin on 10–11 March 1975—the
renegotiation was completed with concessions provided to the UK, including a budget
correcting mechanism and market access for New Zealand butter. Following the approval of
these terms by a majority of the Cabinet and by the House of Commons, the Prime Minister
recommended their approval at a referendum to be held on 5 June 1975.
c. Maastricht Treaty
The Maastricht Treaty, officially known as the Treaty on European Union, marked the
beginning of “a new stage in the process of creating an ever closer union among the peoples
of Europe”. It laid the foundations for a single currency, the euro, and significantly expanded
cooperation between European countries in a number of new areas:
European citizenship was created, allowing citizens to reside in and move freely
between Member States
closer cooperation between police and the judiciary in criminal matters was agreed
The Treaty was signed in the Dutch city of Maastricht, which lies close to the borders with
Belgium and Germany. It was the result of several years of discussions between governments
on deepening European integration.
The parliaments in each country then ratified the Treaty, in some cases holding referendums.
The Maastricht Treaty officially came into force on 1 November 1993 and the European
Union was officially established.
Since then, a further 16 countries have joined the EU and adopted the rules set out in the
Maastricht Treaty or in the treaties that followed later.
3. It laid the foundations for the euro
The Maastricht Treaty paved the way for the creation of a single European currency – the
euro. It was the culmination of several decades of debate on increasing economic cooperation
in Europe. The Treaty also established the European Central Bank (ECB) and the European
System of Central Banks and describes their objectives. The main objective for the ECB is
to maintain price stability, i.e. to safeguard the value of the euro.
The idea of a single currency for Europe was first proposed in the early 1960s by the
European Commission. However, an unstable economic landscape in the 1970s meant that
the project was brought to a halt.
European leaders revived the idea of a single currency in 1986 and committed to a three-stage
transition process in 1989. The Maastricht Treaty formally established these stages:
Stage 3 (from 1 January 1999 to today): gradual introduction of the euro together with
the implementation of a single monetary policy, for which the ECB is responsible
4. It introduced the criteria that countries must meet to join the euro
Along with setting out the timeline for the introduction of the single currency, the Treaty also
established rules on how the euro would work in practice. This included how to determine if
countries were ready to join the euro.
The purpose of these particular rules, sometimes referred to as the Maastricht criteria or the
convergence criteria, is to ensure price stability is maintained in the euro area even when new
countries join the currency. The rules work to ensure that countries joining are stable in the
following areas:
inflation
exchange rate
Since the signing of the Maastricht Treaty, European countries have grown closer together
while some policy areas such as economic and fiscal policies remain at national level.
European leaders have agreed on additional steps to promote further integration between
European states:
the Stability and Growth Pact was agreed in 1997 to ensure that countries followed
sound budgetary policies
the Single Supervisory Mechanism and the Single Resolution Board were created
after the financial crisis to make the European banking system safer, as well as to
increase financial integration and stability
Today, more than 510 million citizens from 28 Member States enjoy the benefits of European
cooperation. And 25 years after the roadmap towards the euro was agreed, the euro has
become the world’s second most traded currency and is part of the daily life of 340 million
citizens in 19 countries.
d. Brexit
On June 23, 2016, the United Kingdom voted by 52% to 48% to leave the European Union
(EU). The vote for “Brexit” sent shockwaves around the world, rocking financial markets and
rekindling global debates about the appeal of national populism, as well as the long-term
viability of the EU. Aside from challenging liberalism and global markets, the vote for Brexit
also highlighted deepening divides that cut across traditional party lines in British politics. On
one level, the vote for Brexit served as a powerful reminder of the sheer force of Britain’s
entrenched Eurosceptic tradition and of the acrimonious splits among the country’s political
elite over Britain’s relationship with Europe. But on a deeper level, Brexit should also be
seen as a symptom of longer-term social changes that have quietly been reshaping public
opinion, political behavior, and party competition in the UK as well as in other Western
democracies.
1. Leave with no deal, known as "no-deal Brexit”. But without a trade agreement, ports
would be blocked and airlines grounded. In no time, imported food and drugs would
run short.
2. Vote again on Brexit. Polls show the U.K. would reject Brexit if the referendum were
held today. On December 10, 2018, the European Court of Justice ruled that the U.K.
could revoke its Brexit application unilaterally. No other EU body is needed to
approve the withdrawal.
3. Approve May's deal or one similar to it. The U.K. doesn't have the economic clout to
negotiate a better one. Johnson has told the EU he refuses to meet unless it agrees to a
border between Northern Ireland and the Republic of Ireland.
5. Legal Process behind Brexit
Regardless of which type of Brexit the UK adopts, the UK will no longer be required to apply
some (if not all) EU legislation. The UK has implemented certain EU laws (generally, EU
directives) via primary legislation that will continue to be part of English law, unless these
are amended or repealed. Other EU laws (generally, EU regulations) have direct applicability
in the UK without the need for implementation, which means that these laws would fall away
once the UK withdraws from the EU, unless they are transposed into UK law. Finally,
thousands of statutory instruments have been made pursuant to the European Communities
Act 1972. If this act is repealed upon the UK’s withdrawal from the EU, then, unless
transposed into UK law, these statutory instruments will cease to apply as well. Therefore,
the UK will have to perform a complex exercise to determine which EU laws and EU-derived
laws it wishes to retain, amend or repeal, driven in part by the nature of any agreement
reached with the EU during exit negotiations.
6. Effects of Brexit
a. On UK
The Brexit vote has strengthened anti-immigration parties throughout Europe. As a result,
Germany's Chancellor Merkel has already announced she will not run for re-election. If these
parties gain enough ground in France and Germany, they could force an anti-EU vote. If
either of those countries left, the EU would lose its most robust economies and would
dissolve.
On the other hand, new polls show that many in Europe feel a new cohesiveness. The U.K.
often voted against many EU policies that other members supported. International Monetary
Fund Director Christine Lagarde said, “The years are over when Europe cannot follow a
course because the British will object.” She added, “Now the British are going, Europe can
find a new élan.”
7. Conclusion
The hypothesis of the researcher has been proved correct. It has been concluded that
sovereignty, economy, fiscal consolidation and immigration did play a major role in the UK
deciding to leave the EU. These factors combined with others led to the people of the UK
being dissatisfied with the EU and wanting an exit from it.
8. Bibliography
Article
Websites
http://www.euvisions.eu
https://www.bbc.com
https://www.cidob.org
https://www.thebalance.com
https://www.bloomberg.com
https://www.europeansources.info