Brexit regret!

Britain joined the EU in xxxx.

On the 23rd June 2016, Britain voted to leave the EU.

The euro was adopted on 1st January 2002 as the official currency for most of the member states of the European Union. 


However, Britain was the most notable country to decide against using the euro. The main reason was because Britain did not want to lose control of its own monetary policy. If Britain adopted the euro, interest rates would be decided by the European Central Bank (ECB).

Britain’s prime minister at the time, David Cameron, was in favour of remaining in the EU. 

 

However, whether or not Britain stayed in the EU was to be decided by referendum, meaning the final decision was to be decided entirely by public vote. In the end, “Leave” won with 51.9% of the vote, while “Remain” received 48.1%.

Reasons for leaving EU:

  • regain border control (reduce immigration)
  • regain control of monetary policy from ECB 
  • no longer required to

Reasons why Britain may regret Brexit

Questions

  1. What is meant by the term monetary policy? (2)
  2. What is meant by the term central bank? (2)
  3. The European Union is an economic union. Explain one reason why wages in the UK may be lower because of its EU membership. (3)
  4. Analyse the reasons why allowing the European Central Bank to control its interest rate may not be in Britain’s best interest. (6)
  5. Assess the view that leaving the EU was the right decision for Britain. (9) 

Hint: