"Brexit" is happening!!

 As I am writing this post, Brexit is all set to happen. 

BBC forecast a lead for exit by 52% Vs 48% to remain in the European Union. It indicate that people of Britain have chosen to exit the European Union. What started back in 1973, considering the consequences of World War II, where there was a need for all the countries to come together to avoid any more World War like situation, has started getting cracks, it seems. Britain was always a leader in deciding the directions for European Union. But with this decision made by Britishers, is going to give new direction to the future. Although, the decision is out, but its execution is not going to happen any sooner. As per the Lisbon treaty, an article 50 need to be triggered, if a country wish to leave the Union. There is a clause though, that the said country can not join back the Union, unless all the other countries of the Union are ready to accept it back. So, the exit process will take time anywhere between 2 to 5 years.

The immediate effect of the result is seen. Our own share market has tumbled down by nearly 1000 points already. The portfolio is looking all red. The currency valuations have changed. It has a direct impact on both the Euro as well as Pound. These are just the immediate effects seen. What lies in the future is still unknown for the major part of the world. Apparently, the people of Britain have voted emotionally, some calling June 23 as an Independence Day. The experts all over the world including those from Britain were all suggesting to stay with the Union, to avoid the financial crisis, which definitely comes with this package of Brexit. But, people found the need to curb the uncontrollable immigration, which is spoiling the balance of their day to day life. Only time will tell, whether this decision will yield positive results or trigger another volatile situation. I personally feel, England has always lead by taking very unexpected and strange looking decisions, but in the end they prove it correct. 

Photo courtesy: http://www.catholicherald.co.uk/issues/march-4th-2016/why-catholics-cant-agree-on-brexit/

Greece: Twist in the tale

The Greece story is writing new pages in history. This is a story which started a lot earlier by started creating interest since say 2011. Lot of things started happening back then. Check these pages of the story.

At some point of the time, the story apparently was coming to an end, probably a happy ending. But all was not well. Greece, on one hand was running short of money, but, on the other hand, do not wanted to reduce the level of their standards of living.  This was the point of conflict of interest.

The European Union (EU) wanted to put restrictions which will make Greece thrifty. But, Greece do not want to compromise with their standard of living. Greece, major part of expenditure is associated with the Pension schemes. EU wanted to bring this expenditure under control. A lot has been happening on this front.

Finally, yesterday, the people of Greece voted for decision whether to accept European Union's conditions. Based on this it will be decided whether EU will decide whether to continue helping Greece or to let them leave EU.

 

Result of the voting is out now and people of Greece have decided to stand against the conditions being imposed by EU. They are apparently ready to leave EU and accept the condition bankruptcy.

There is another angle to this decision taken by people of Greece. With this decision, Greece probably will be in a condition where they will negotiate with EU to relax the conditions put on them. EU as such do not want any of the country to leave. Because if Greece leaves, there are other countries including Spain, Ireland, Portugal waiting in line and then EU will kind of become meaningless.

 

It will interesting to see now, how this story unfolds in future. The next few pages of the story are going to be very interesting and probably effecting every one of us in some or the other way.