Analysis of Reasons and Impacts of Brexit

Abstract

Brexit represents a pivotal moment in the history of European integration. This paper provides a systematic analysis of its political, economic, and social drivers, as well as its multi-faceted consequences. Politically, profound British skepticism regarding the transfer of sovereignty to the EU and disputes over refugee policies served as immediate catalysts. Economically, discontent with EU budget contributions and the pursuit of greater trade autonomy were central demands. Socially, the historical tradition of "splendid isolation" and a weak European identity formed the public opinion foundation. In terms of impacts, Brexit has not only challenged London's status as a global financial hub and introduced new barriers to UK-EU trade but also risks intensifying regional divisions within the UK. For the EU, its international stature, the image of integration, and budgetary capacity have been significantly weakened, potentially steering the bloc towards more conservative trade policies. Globally, Brexit triggered short-term market volatility and introduced long-term uncertainties for the future global trade landscape and governance system.