Voting in favour of ‘Brexit’, the British masses have shown unwillingness to remain a part of the EU. The decision has had grave political repercussions the world over, prompting also, swift ripples on the global share market as much as on the global political scene. Following the results of the referendum, the British Prime Minister has announced his decision to step down. He has, however, announced that he would be continuing in office for the next three months for the sake of political stability. Merkel, the Chancellor of Germany and Hollande, the President of France have both, expressed regret over the decision. A few leaders of France and of the Netherlands have demanded that their countries follow suit and step out of the EU.
It was a 48.1% against 51.9% vote ratio in favour of Brexit. Over the last few days the picture that was emerging indicated that Britain would remain in the EU and so the British vote in favour of Brexit has indeed sent shock waves through the world. The results were followed by Prime Minister David Cameron’s decision to resign. ‘It would not be right for me to continue to be the captain. I will however, continue in office until there is a decision on the next leadership’, he said. He reassured the market and the investors that Britain’s economy was strong and stable. Expressing happiness at the results, Nigel Farage, leader of the UKIP party said that June 23rd would go down in history as Britain’s Independence Day. Farage had campaigned aggressively in favour of Brexit. ‘The EU is falling apart. The EU is dying and this, the British people have proved’, he stated. He even urged Sweden, Austria, Denmark and Italy to consider the possibility of exiting the EU. While Farage and other leaders celebrate Brexit, the European nations and the global economy are already showing the effects of Brexit.
For the first time after 1985, the pound took a straight plunge, down by 10% hitting a 30 year low whereas the Euro, the currency of the European Union, slid down by 3%. Crude oil rates fell but gold rates have surged. The Asian markets too demonstrate the impact and the Japanese share market shows a major downslide. All the countries have evidently suffered a downslide of their currency and so have set about measures to check further losses. The Japanese Minister for Finance, Taro Aso, has appealed for co-operation at the international level for the purpose of overcoming the currency issue.