Presented By:

Mahendranatha Reddy
Hemanth Kumar

What this talk covers

Definition of the EU
How EU work?
UK in European Union
Brexit: In or Out of EU?
What is Referendum
Impacts of Brexit on UK & World
Conclusion

Definition of the EU

EU: European Union (1993)

The European Union - often known as the EU - is an economic and

political partnership involving 28 European countries

It began after World War Two to foster economic co-operation, with

the idea that countries which trade together are more likely to avoid
going to war with each other.

It has since grown to become a "single market" allowing goods and

people to move around, as if the member states were one country.

How EU works?

The European Union is based on the rule of law. This means that
every action taken by the EU is founded on treaties that have been
approved voluntarily and democratically by all EU countries.

The treaties are negotiated and agreed by all the EU Member States
and then ratified by their parliaments or by referendum.

Who takes the decisions?

The European Commission
The European Parliament
The Council of the European Union and
The Court of Justice.

UK in European Union

The EU is the UKs largest trade partner by far (accounting for

c.44% exports and c.54% imports in 2015) and this is likely to
continue in the short and medium term, subject to legal status.

Brexit: In or Out of EU?

Are there any viable options for Britain leaving the EU?

What would be the impact on British jobs?

Would Britons need visas to visit EU countries?

Would Britain save money?

What would happen to Britons working in Europe, and EU citizens

working in the UK?

Would taxes change?

Referendum
After the Referendum:
Prime Minister steps down quoting he was not the right "captain to
steer the country to its next destination.
Market reaction to the referendum result was immediate and dramatic.
There is a formal legal process for withdrawing from the EU
-enshrined in Article 50 of the 2009 Lisbon Treaty.
Will Scotland and Northern Ireland break away?

Referendum
Before the Referendum:
Leaving the EU would result in an immediate cost saving, as the
country would no longer contribute to the EU budget.
The EU is a single market in which no tariffs are imposed on imports
and exports between member states.
Inward investment is likely to slow in the run-up to the vote, due to the
uncertainty of the outcome and its consequences.
Under EU law, Britain cannot prevent anyone from another member
state coming to live in the country and vice-versa.

Impacts of Brexit

The uncertainty generated is likely to lead to a loss of momentum in

the UK economy possibly knocking off up to 0.5% GDP growth in
2016 UK economy.

Market estimates for UK GDP growth in 2017 are 1.5% y-o-y vs.
2.7%.

Discretionary industries will be hardest hit (e.g. Financial Services,

Real Estate, House Builders, Defence)

Non-discretionary industries will be more robust (e.g. Telco,

Healthcare, Metals & Mining, Tobacco)

GDP Graph
Will Scotland and Northern Ireland break away?