Brexit is a word that has been used as a shorthand way of saying that the UK leaves the EU merging the words Britain and exit to get Brexit, in the same way as a possible Greek exit from the euro was dubbed Grexit in the past; in other words, Brexit is an abbreviation for British exit referring to the UK’s decision in a June 23, 2016 referendum to leave the European Union. There are three main root causes led to Brexit such as the effects on sovereignty, the effects of EU immigrations, and Britain financial contribution (Zanny Minton Beddoes,2016). First, EU membership trumps national law. In the years before the referendum, under the previous Conservative–Liberal Democrat coalition government, the 2011 Act sought not only to establish a series of direct democratic locks on the transfer of further power or competence from the UK to the EU, but also to reaffirm in statute that the sovereignty of the UK Parliament was retained during membership of the Union.
Member States’ national sovereignty has been fragmented by the extension of qualified majority voting (QMV) and decrease of the exercise of national veto in the Council of Ministers. In November 2014, QMV only requires a majority of votes 55 per cent of the member states and 65 per cent of the EU population which means that member states are obliged increasingly to adopt laws to which they may oppose James (Dennison & Noah Carl ,2016). Furthermore, member state national sovereignty has been eroded as supranational European institutions have been granted considerable powers in policy areas formerly reserved for member states. Supranational institutions are composed of community rather than national representatives, which means that they do not represent the interests of the member states but of the EU or its citizens a whole. The powers of the European Commission in particular can be viewed as a major limitation to national sovereignty. parliamentary sovereignty has been eroded by the primacy of EU law. The supremacy of Community law implies that in cases of conflict, EU law takes precedence over national law and must be applied. Second, EU Immigration is the main cause affecting Britain’s employment prospects.
Between 1995 and 2015, the number of immigrants from other European Union countries living in the UK tripled from 0.9 million to 3.3 million.
In 2015, EU net immigration to the UK was 172,000, only just below the figure of 191,000 for non-EU immigrants. Migratory flows expand Europe’s economy as a whole and as well as member states. Yet, EU’s free movement gave the rise of unemployment rate and challenges for native workers (ESRC Research Project (n.d.). Immigrant workers compete British workers because are more skillful and productive than native ones. Moreover, Immigrants are younger and better educated than their UK-born counterparts. The most recent immigrants are better educated.
Immigrants are over-represented in the very high-skilled and very low-skilled occupations. EU immigrants are more likely to be in work and less likely to claim benefits than the UK-born. About 44% have some form of higher education compared with only 23% of the UK-born. About a third of EU immigrants live in London, compared with only 11% of the UK-born. Third, Britain financial contribution to EU is the serious concern (Jonathan Wadsworth, Swati Dhingra, Gianmarco Ottaviano and John Van Reenen, n.d.).
The financial relationship between the UK and the European Union continued to be a major talking point as the terms of Brexit are negotiated. The UK receives a rebate on its net contribution. The rebate was introduced in 1985 to correct the issue of the UK making relatively large contributions to the EU budget while receiving relatively little receipts from it. The rebate is deducted from the UK’s contributions before it makes its payments to the EU budget.
Practically, according to Matthew Keep (4, January 2018), in 2016, the UK paid £13.1 billion to the EU budget, and EU spending on the UK was forecast to be £4.5 billion; therefore, the UK’s net contribution was estimated at about £8.6 billion.
This showed that the UK payed more into the EU budget than it can get back.