Brexit and Impending Collapse of European Union

05 July 2016
BREXIT is a reflection of European Union’s impending break-up on account of the mounting imperialist crisis and the surge in social and political tensions. The referendum in favor of Britain’s exit from EU is not the result of an overnight development. It is the gravest crisis that Europe is confronting ever since the US-sponsored Marshall Plan of the immediate post- World War II period. It was followed by the creation of EU. The driving forces behind the establishment of EU had been the unbridled appetite on the part of European finance capitalists for profit maximization through integrated plunder of the working class by means of perfect cross-border mobility of capital and labour. Under neo-liberal accumulation, however, rival national states of Europe have continued to pursue independent and conflicting economic policies at the expense of weak nations of the EU. This has assumed irreversible character with the advent of neo-Nazi and ultra-right wing forces in the political arena.

Britain is the 5th largest country in the world and 2nd largest one in EU. Though for a time nothing much is expected to happen, its exit will have far-reaching repercussions in EU and at a global level. The immediate perception that Britain will be weakened has led to the drastic fall in the Pound. Markets all over the world are reacting to this perceived weakness. Due to Britain’s deep involvement in sectors like finance, these sectors will be affected. Though details are yet to come, in India stock exchanges, financial markets and currency, for example have already experienced a plunge. This development should be seen as part of the sharp right wing shift taking place around the world.
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