Understanding Brexit
On Thursday, voters in the United Kingdom decide whether to leave the European Union or remain a part of it. The prospect of a British exit — or “Brexit” — is sparking concern in markets across Europe and around the world. This issue has sparked a divisive and ferociously contested campaign, with British Prime Minister David Cameron warning that leaving the EU would be an “irreversible” choice.
John Peet, the political editor at the Economist, joined Yahoo Global News Anchor Katie Couric to discuss the ramifications of a potential Brexit vote.
Peet said that arguments against Brexit are largely economic and include maintaining the free-trade zone between Britain and continental Europe, keeping London’s place as a world financial capital and preventing uncertainty for British businesses. The arguments for Brexit are mostly nationalistic and — as former London Mayor Boris Johnson said — “[taking] back control of this great country’s destiny.” Peet said that it is not necessarily the case, if Brexit were to pass, that Britain would be able to clamp down on migration.
Peet also said that similar populist, anti-establishment forces powering Donald Trump’s campaign in the U.S. were at work in the Brexit referendum. Regardless of the outcome, Peet believes that the media and politicians need to respond to voters dissatisfied with the economic and social status quo.
