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What is Brexit and Why Are People Turning To Australia?

VisaOne VisaOne 27 June, 2016
brexit-UK-EU-flag

On 23 June 2016, United Kingdom decided that it would leave with the European Union in a significant referendum that showed 52% of its citizens voting against the stay, the conclusion for the economic and political decision known as the Brexit. The result caused missive impact on a global scale: the British pound fell to its lowest level since 1985, $2 trillion were wiped out from the stock market on single day last Friday, and there has been a sudden spike of interest in migrating to Australia in the Google searches.

 

 

What actually is “Brexit?”

A combination of two words, “Britain” and “exit,” Brexit is United Kingdom’s decision to finally leave the European Union, a trading and economic group that it has been part of since 1973. The debate about staying and leaving the group has been raging on for quite a while now, with the politicians, pundits, economic experts, and British citizens completely polarized on the issue.

This debate was concluded last Thursday in a historic referendum (with more than 30 million people voting, the highest since the 1992 general elections), with 52% of the people wanting the country to leave.

 

 

What is the European Union?

Founded in 1957, the European Union (also known as the EU) is a political and economic partnership between 28 European countries aimed at forming a single market that allows free movement of goods, capital, and even people between each countries, just like as if they are a single country.

As what we have established with each of our articles where we compare Australia with other European countries (United Kingdom, Switzerland, Germany, France, Italy, and Spain), having a visa with any of the EU nations will allow you to travel, work, and even live to other member countries.

Nineteen of these countries share a singular currency, the Euro, to establish a faster and more efficient system of trade. These countries form the Eurozone. United Kingdom was never part of the Eurozone, as it has maintained the British pound from the time it joined the group up to now.

 

 

Why Leave the European Union?

The United Kingdom heavily benefits from being a member of a powerhouse economic and political group such as the European Union, such as (but not limited to):

  • Having more power in establishing trade partnerships with the United States and Asia Pacific countries (EU is such an efficient trading bloc), a move that greatly increases the flow of exports and imports exponentially.
  • Having other 27 countries as your permanent trading partner, as more than 50% of UK’s exports are going to other EU countries. No other country in the world outside EU enjoys such stable trade conditions.

These and other benefits are quite blinding and worth keeping, but there are also corresponding burdens to this set up especially when it comes to migration, such as (again, not limited to):

  • The unrestricted and unregulated flow of migration to the UK from other EU countries, which, as stated by UK Independence Party leader Nigel Farage, resulted in substandard labor and loss of job among Brits.
  • People from other EU countries travel to the UK only to claim free social welfare benefits like healthcare and unemployment, which drains the country’s resources in the long run.

It should be noted that one of the European Union’s mandates is that citizens can travel, live, and work on each member countries freely, thus the uncontrolled exodus among each nation.

 

 

What Happens To Migration Post-Brexit?

A few days before the British referendum, people were turning to Australia as a possible alternative migration destination. The Google searches peaked significantly when media outlets finally announced the referendum’s result.

This is because with the United Kingdom leaving the trading bloc, there will be disruptions in its migration policies, making it more stringent and hard-nosed on future migrants. This move will reverse the unfavorable effects brought by uncontrolled flow of people back in its EU days. It should be noted that UK left EU mostly because of this reason.

With these changes coming in, people are looking for alternatives, possibly with the same economic foothold and democratic atmosphere. And one of their top choices? Australia.

 

 

Why Australia?

The choice is not accidental. Looking at the numbers, Australia is your best bet while the UK and the EU are still in squabbles about what to do post-Brexit, and while the stock market atmosphere and economic policy changes are still yet to settle down.

So, why Australia? Here are a few convincing reasons:

 

Australia Has a Stable Economy

Economy is the primary consideration when migrating to a country, and Australia has earned a big plus on that. The Land Down Under is the 12th largest economy in the world, has an inflation rate of a meager 1.3%, and a very low unemployment rate of 5.7%. It is a complete haven for migrants looking for a better life.

Given, Brexit will have repercussions on the world’s economy, and that will include Australia. But seeing as how the country came out of the recent global economic crisis unscathed with its very good economic contingencies and fiscal policies, we can definitely say the Lucky Country can tide Brexit’s impact as well.

 

Australia’s Partnership with the European Union Remains Strong

European countries’ charm when it comes to migrants is its powerhouse trade bloc, the EU itself. This gives them strong footing as far as the economy is concerned. But they aren’t the only ones enjoying such privilege. Though not a member, Australia is a strong trading partner of the union since 2008. EU is the largest source of investment for Australia and their companies are directly responsible for the creation of 500,000 jobs in the country.

But their partnership is more than just the numbers. EU and Australia also supports each other when it comes to political issues and international cooperation. European Union’s top migration destination, the United Kingdom, might be in the edge of stability now due to the exit, Australia remains as stable as ever.

 

Australia Has Very Good Migration Policies

One of the European Union’s bane on the United Kingdom is the very lax migration system between member countries, resulting to one-sided flow of migration of people from the less developed to the more thriving countries. UK got the short end of the stick on this with the massive influx of people coming here. After Brexit, the country is expected to curb migration and instill stricter tourism policies.

Australia, on the other hand, has its migration under control. While it may not be as strict as other countries (or as UK will be in the future), the country has always made sure it accepts only skilled migrants that adheres to its own well-designed migration policies and high standards of labor. It only makes sense to say that the Lucky Country has one of the best migration procedures in the world.

And how do we know this? Because the United Kingdom is planning to adopt Australia’s migration point system to help establish future policies and help their economy.

 

 

The cloud of dust with Brexit is still yet to settle, but the sun is always up in Australia. Throw us a message in the enquiry section below or call us at 1300 619 977 and we will help you build your dreams here!

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