The European Union : A Political And Economic Union

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The European Union (E.U.) is a political and economic union that contains 28 member states that are located primarily in Europe. The European Union was formed with the aim of ending recurring and bloody wars between neighbors, which culminated into the Second World War. In 1950, the European Coal and steel community began to unite European countries economically and politically to secure lasting peace. It started out with six countries in what was called the European Economic Community (EEC). Then in the 1970’s, three countries, including Great Britain, joined the EEC. Great Britain joined the EU to strengthen their economy which wasn’t recovering as quickly as other countries in the EEC after World War II. In 1992 the EEC changed their …show more content…

The Brexit is something that will cause a negative impact economically. Not only in Britain, but around the world. In Britain one element the Brexit effects their Gross Domestic Product(GDP). The UK’s per capita GDP relative to the EU founding members declined steadily from 1945 to 1972. However, it was relatively stable from 1973 to 2010. Reports from the British Treasury, The Bank of England, The IMF, The OECD, the National Institute of Economic and Social Research, PWC, Oxford economics, and the Centre of Economic Performance have all predicted a negative effect on the British Gross Domestic Product (GDP). Around 3 million jobs rely on the EU and no one knows just what will happen to them if they leave. Another point is since the Brexit referendum, Britain has fallen into sixth place for the world 's largest economy, they lost their Top AAA credit rating which means the interest rates will be higher, and the pound has fallen to a 31-year low of about 1.27 compared to what it originally was at about 1.50. With the world economy one element that is affected is the stock market. In wake of the Brexit vote the U.S Stock Market suffered its worst drop in 10 months the day after the vote and with the drop-in stocks, it caused $800 billion dollars to be erased in U.S market value, which is huge and this is just the referendum. Another element the Brexit has impacted in the world

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