Okay, When Will Brexit Actually Happen?
After Boris Johnson’s victory in the UK elections, you’ve probably seen a lot of headlines that Brexit is bound to happen. But not everything is so simple. Let’s take a look at this event and what it means for the UK – and what it might (ultimately) mean for us in the US.
What just happened?
British Prime Minister Boris Johnson won the election against Jeremy Corbyn.
Johnson supports the Conservative Party, also known as the Tories, who wants Brexit to happen immediately; Corbyn’s Labor Party is reluctant to leave the EU. Corbyn wanted another referendum – another public vote on whether to stay in the European Union or leave. (The referendum was originally held in 2016).
Johnson has been prime minister since July, when he was elected leader of the Conservative Party and appointed prime minister following the resignation of the conservative Theresa May.
This election was general (all voted) and reportedly had a massive turnout .
When do they leave?
Johnson’s win is part of Brexit because he was adamant about making it happen . But leaving the EU is not automatic now that his role as prime minister is safe.
Parliament must vote on Brexit by the end of January. With Johnson as prime minister, this is almost a guarantee that this will happen. Once the law is passed, the UK will no longer officially be part of the EU, Vox said, but both sides will still have to negotiate Brexit terms. They have a deadline for this until December 31, 2020. If they need more time, they must announce it by the end of June.
So, formally, Brexit is likely to happen in January, but it will take time to agree on terms of trade, security and other cross-border issues.
What’s Changing at the National Health Service?
Nothing yet.
The UK’s National Health Service has struggled with funding shortages in recent years, making it difficult to get medical care due to long waiting times and overcrowding. Johnson previously made big promises to fund additional staff and new hospitals, but he had to backtrack on those promises. At the same time, his Conservative Party is pushing the health care system towards privatization.
Meanwhile, Corbyn and the Labor Party have focused on the NHS, promising to invest in the healthcare system. Labor also wants the NHS to remain a public service.
In his winning speech, Johnson pledged to focus on the NHS, again demanding more funding to hire thousands of healthcare professionals and build 40 new hospitals. He did not comment on privatization issues.
What does this mean for currency?
The British pound skyrocketed as it approached victory, peaking since May 2018. On the evening of December 11, one British pound could buy $ 1.32. On the evening of December 12, one pound was worth just over $ 1.35.
But while the three-cent jump looks huge on a chart that tracks the currency by the minute (the Wall Street Journal has a good one ), it’s not a big jump. The pound still hasn’t fully recovered since the 2016 Brexit referendum.
The New York Times noted that the speeches are likely to last several weeks due to the Brexit hype. But once the UK and EU enter trade discussions on Brexit in 2020, the pound could weaken.
Does this mean anything for our economy?
Not yet, but keep an eye on this. Once the UK leaves the EU, it will have to strike a new trade deal with the US President. Trump was very excited about the prospect, according to a late tweet in which he congratulated Johnson.
As far as your personal finances are concerned, you can expect some stock market volatility in response to all this volatility happening in the pond. If you are investing for the long term, remember not to worry too much about the ups and downs you see – it will eventually level out.