Brexit: All You Need to Know

Brexit, short portmanteau of British exit from the European Union, is the impending withdrawal of the United Kingdom (UK) from the European Union (EU). It follows from the referendum of 23 June 2016 when a majority of 52% of British voters supported leaving the EU. On 29 March 2017, the UK government invoked Article 50 of the Treaty on European Union. The United Kingdom is due to leave the EU on 29 March 2019 at 11 p.m. UK time (midnight Central European Time), when the period for negotiating a withdrawal agreement will end unless an extension is agreed. There is a broad consensus in existing economic research that Brexit is likely to reduce the UK's real per capita income in the medium term and long term. There is also agreement among economists that the Brexit referendum itself damaged the economy in the subsequent two years. Studies on effects that have materialised since the referendum show annual losses of £404 for the average UK household from increased inflation, and losses between 2% and 2.5% of UK GDP. Brexit is likely to reduce immigration from European Economic Area (EEA) countries to the UK, and poses challenges for UK higher education and academic research. As of September 2018, the size of the "divorce bill", the UK's inheritance of existing EU trade agreements, and relations with Ireland and other EU member states remain uncertain. The precise impact on the UK depends on whether the process will be a "hard" or a "soft" Brexit.