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HOW WOULD THE UK'S EXIT FROM THE EU IMPACT THE IT INDUSTRY?

Wednesday 9th March 2016
 Over the last couple years there has been much discussion between  government bodies as to whether the UK should remain in the  European  union. In this blog I’ll be discussing the advantages and  disadvantages of each potential eventuality…

 So what exactly is the European Union?
 The European Union is an economic and political partnership  involving 28 European countries. It is a "single market" allowing  goods and  people to move around freely.

 Why should we leave?
 A small percentage of people who live in the UK believe it is being held back by the EU, they say it imposes too many rules on business  and charges billions of pounds a year in membership fees for little return. One of the main principles of EU membership is "free  movement", which means you don't need a visa to go and live in another EU country. 

 Some people also object to the idea of an "ever closer union" and any ultimate goal to create a "United States of Europe". The idea of a  European super state that would compare to the likes of Russia or the USA. Europe is built up of countries who differ in nearly every way but come together for the benefit of their economy. Uniting them as one super state would see countries lose their individuality thus identity.

Why should we stay?
Britain gets a big boost from EU membership - it makes selling things to other EU countries easier and, they argue, the flow of immigrants, most of whom are young and keen to work, fuels economic growth and helps pay for public services. They also believe Britain's status in the world would be damaged by leaving and that we are more secure as part of the EU bloc.

What about businesses?
Large businesses are in favour of staying in the EU because it makes it easier for them to move money, people and products around the world.
An article by Cityam.com went on to say that 6 out of 10 small businesses would vote to stay in the EU as UK growth may be affected by an EU exit and smaller businesses would not be able to compete in an EU market if import tariffs and potential trade restrictions were added to their products/services.

The Tech Industry
A key driver in the UK’s economic recovery from the recession has been the influence of the tech industry. Tech companies from outside Europe looking to establish themselves have seen the UK as an attractive place to make base. The tech industry is an industry with a large skills gap. It has been forecast that the UK will need to fill as many as 1 million new tech jobs by 2020. If Britain were too exit the EU it would make recruiting for these new jobs a lot harder and new companies may look elsewhere to start up. Thriving tech companies do so because they blend foreign and domestic employees.  

A survey by The Guardian showed nearly 3000 members of Tech London Advocates are against Britain leaving the EU. 87% of members were opposed to leaving because it made it harder for British companies to reach customers in other EU countries. They would find it harder to recruit and the UK Industry may be segregated whilst the others look to trade with each other to benefit the euro. 

My thoughts...
I think the UK has a lot more to lose from leaving the European Union than it would gain from leaving. Once tariffs and other trade restrictions are applied to goods and services its makes it very hard to compete in any market. The free movement of people throughout Europe is important to our modern culture.

What do you think? 

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