Article by David Zambuto | esPResso Staff Writer
A country-wide referendum issued by former Prime Minister David Cameron announced a turning point in relations between the UK and European Union.
According to BBC, after the 52% to 48% polling results portrayed the Leave choice winning, David Cameron announced his resignation and the reign of Britain’s new Prime Minister, Theresa May, began. Cameron stated that he had thought long and hard about the issue during Brexit and decided that the right thing to do would be to step down.
Britain’s vote to leave the EU prompted article 50 of the EU laws that left uncertainty in how the UK would officially cut off ties to the EU. The UK will have two years to figure out the details of their exit, according to a report from BBC, and the 1.3 billion UK workers working in the EU will be affected by the new legal policy.
“In modern politics it isn’t really possible to be a backbench MP as a former prime minister,” Cameron stated to British Journal; the Week, , adding that he thought “everything you do will become a big distraction and a big diversion from what the government needs to do for our country.”
In regards to economics, a report issued from BBC noted that markets in the UK and around the world have plummeted with the value of the the pound dropping in value. Against the U.S. dollar, the pound is now worth about $1.33 instead of being worth $1.57 from it’s year value resulting in a 15% fall. In comparison to the Euro, the pound is “now worth about €1.19 a decrease value of 12% of €1.35.” While currency values have dropped, interest rates in the UK were cut from 0.5% to 0.25% leaving interest rates at an all-time low.
The news of this monumental change blew up around the world, prompting many eager followers to keep up via social media and the internet. Citizens of the U.S. and abroad are patiently waiting to see how the fallout continues and what effects this will have on the economy in the upcoming years.