Now that Brexit is officially going to happen, you will come across 1000s of debates and articles on this subject. But there is one very important thing to know: it is not going to happen tomorrow. The whole process will take at least 2 years or more.
The road ahead is unclear as the terms of the exit are not streamlined as yet. However, let me explain in a nutshell, what exactly it means for a common man or a traveler in this case.
Simply put, this is how it works:
The Pre-Brexit Era for families and skilled individuals.
- EU citizens were able to travel to UK and live there and open businesses without a problem or without the feel that they have changed their place, because UK being the part of EU allowed this seamlessly.
- UK citizens can do the same in EU.
- Skilled Europeans were able to travel to UK for jobs (Engineers, Doctors etc) and were allowed to live and work without going through the ABC of immigration procedures. All you needed to do was obtain the National Insurance Number and you were good to go.
- British professionals were able to travel to EU to do work and have a work life.
- If you had a job waiting for you or a place to live, it could all be done by just traveling to UK / EU as per your case.
The Post-Brexit Era for families and skilled individuals.
Standard immigration procedure will follow in UK if EU citizens would like to live / work there for more than 90 days.
All this will be finalized when the “actual” Brexit takes place.
Being a UK / EU citizen you can open a business in UK as well as EU and go about your business seamlessly. As multinational, you can setup your office in London and operate in the whole EU region.
This will change after Brexit.
When it will actually happen.
As we know, Prime Minister of UK David Cameron has resigned today and will be in the office until end of September – beginning of October. He has made it clear that in the coming week he will be going to Brussels to start the process and will negotiate the terms of exit and activation of Article 50.
What is Article 50
Article 50 comes into power when a member state wants to exit or cancel its membership from the EU. Under that article the terms of exit will be negotiated and on agreement of the terms (there are people who can veto or alter the terms based on national interest) within 2 years UK will be out of EU and all the treaties that were signed in Pre-Brexit Era that fall under the EU membership for that particular state will be deactivated. Also, UK will not be contributing to the EU budget (that is billions of pounds a year) and can spend the money elsewhere best for national interest.
So it will take 2 years for all this happen.
Immediate Aftershocks of Brexit
It is amazing to see that something that will be taking a procedural time of 2 years has immediate effects on the economy. The Pound has taken immediate hammering and fell 6% to 10%~ and experts predict the fall will go down to 20% (hope not).
Stocks will also experience a fall. So it is a golden opportunity for small investors to go ahead and buy popular UK stocks. You can expect steady, comparative returns 180-300 days from now.
Should we worry?
To be honest there is nothing to worry. UK is a special national and was running before the EU deal was signed and it will continue to do so after Brexit as well. Yes there are temporary down times but that happens and once the road ahead is clear the economy will be more stable and more fruitful for the ecosystem.
Same can be said about Europe. It is a mix of great nations who bring all the different colors to the table like Engineering, Art, Industry and Agriculture and once the roadmap is clear and agreed upon, the end product will be great.
Economies that will benefit from this situation
In my opinion companies, small investors, and individuals will consider GCC and Far Eastern regions a sure shot place to move to and invest because there is no staggering political change happening there.
Let me know your thoughts about Brexit.
*All gif images sourced from Giphy.