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| Overwhelmed by ‘Brexit’? Here Are the Basics | Overwhelmed by ‘Brexit’? Here Are the Basics |
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| Britain voted on Thursday to leave the European Union, a decision known as “Brexit” that will have global consequences for years to come. It would be the first time any country has left the bloc. | Britain voted on Thursday to leave the European Union, a decision known as “Brexit” that will have global consequences for years to come. It would be the first time any country has left the bloc. |
| Here’s a brief guide to the referendum and what it means. | Here’s a brief guide to the referendum and what it means. |
| More than 17.4 million Britons voted to sever ties with the European Union, whose seat of power lies in Brussels, compared with 16.1 million who voted to remain. | More than 17.4 million Britons voted to sever ties with the European Union, whose seat of power lies in Brussels, compared with 16.1 million who voted to remain. |
| The stunning vote, 52 percent to 48 percent, plunged world financial markets into turmoil, the political consequences for the prime minister of Britain were swift, and people around the globe reacted with shock and confusion. | The stunning vote, 52 percent to 48 percent, plunged world financial markets into turmoil, the political consequences for the prime minister of Britain were swift, and people around the globe reacted with shock and confusion. |
| Fear of being overrun by immigrants was a driving concern for “Leave” voters. But globalization concerns and a desire to wrest Britain from under Brussels’ thumb were also key factors. | Fear of being overrun by immigrants was a driving concern for “Leave” voters. But globalization concerns and a desire to wrest Britain from under Brussels’ thumb were also key factors. |
| The referendum came about as a result of a promise made in 2013 by Prime Minister David Cameron to appease an increasingly vocal anti-European Union wing of his Conservative Party. | The referendum came about as a result of a promise made in 2013 by Prime Minister David Cameron to appease an increasingly vocal anti-European Union wing of his Conservative Party. |
| • Prime Minister Cameron, who led the “Remain” campaign, announced on Friday that he would step down. He offered no “precise timetable” but said he believed his successor — who will manage the process of leaving the union — should be in place by October. | • Prime Minister Cameron, who led the “Remain” campaign, announced on Friday that he would step down. He offered no “precise timetable” but said he believed his successor — who will manage the process of leaving the union — should be in place by October. |
| Boris Johnson, the former mayor of London who backed leaving the E.U., is considered a front-runner to succeed Mr. Cameron. | Boris Johnson, the former mayor of London who backed leaving the E.U., is considered a front-runner to succeed Mr. Cameron. |
| • Global markets plunged. The British pound plummeted to its lowest level since 1985. Investors fled to the American dollar and the yen. | • Global markets plunged. The British pound plummeted to its lowest level since 1985. Investors fled to the American dollar and the yen. |
| Equity markets in the U.S. lost 3.6 percent on Friday, following sell-offs overnight in Japan and Hong Kong. The financial damage was more severe on the Continent than in Britain and the United States. | |
| • The referendum is not legally binding, though it is difficult to imagine that the British government would ignore the will of the voters. | • The referendum is not legally binding, though it is difficult to imagine that the British government would ignore the will of the voters. |
| The process of leaving begins only after the British government invokes a provision of the European Union’s governing treaty, known as Article 50 — an action Mr. Cameron said he would leave to his successor. | The process of leaving begins only after the British government invokes a provision of the European Union’s governing treaty, known as Article 50 — an action Mr. Cameron said he would leave to his successor. |
| Once Article 50 is invoked, though, Britain could not change its mind and stay in the union unless the 27 other members all agreed. | Once Article 50 is invoked, though, Britain could not change its mind and stay in the union unless the 27 other members all agreed. |
| • Britain would leave the world’s largest common market, with 508 million residents, including 65 million Britons. That would free them from the bloc’s commitment to the free movement of labor, capital, goods and services. But it would also bring complications. | • Britain would leave the world’s largest common market, with 508 million residents, including 65 million Britons. That would free them from the bloc’s commitment to the free movement of labor, capital, goods and services. But it would also bring complications. |
| • Little will change for at least two years, but the vote sets off a series of negotiations as the country separates from the union’s remaining 27 members. | • Little will change for at least two years, but the vote sets off a series of negotiations as the country separates from the union’s remaining 27 members. |
| Britain, which has the second-largest economy in the bloc after Germany, would have to come up with new trading agreements. Almost half of its exports are sold on Europe’s common market. | Britain, which has the second-largest economy in the bloc after Germany, would have to come up with new trading agreements. Almost half of its exports are sold on Europe’s common market. |
| • London’s role as a financial center could be imperiled, particularly if the trade in euro-denominated securities moves to rival cities like Paris and Frankfurt. | • London’s role as a financial center could be imperiled, particularly if the trade in euro-denominated securities moves to rival cities like Paris and Frankfurt. |
| • The immediate impact on travel will be limited, especially as Britain was not a member of the passport-free Schengen zone, which came under heavy pressure last year from the refugee crisis. | • The immediate impact on travel will be limited, especially as Britain was not a member of the passport-free Schengen zone, which came under heavy pressure last year from the refugee crisis. |
| • There will also be limited impact on Britain’s security: It remains a nuclear power, a permanent member of the United Nations Security Council and a leader of NATO. | • There will also be limited impact on Britain’s security: It remains a nuclear power, a permanent member of the United Nations Security Council and a leader of NATO. |
| • Scotland and Northern Ireland could go their own way. Both voted overwhelmingly to stay in the E.U. But prominent political leaders in Scotland and Northern Ireland called on Friday for new moves toward separating from Britain. | • Scotland and Northern Ireland could go their own way. Both voted overwhelmingly to stay in the E.U. But prominent political leaders in Scotland and Northern Ireland called on Friday for new moves toward separating from Britain. |
| Scotland, which voted in 2014 to remain in the United Kingdom, may revisit that referendum. Northern Ireland has an open border with the Republic of Ireland, a member of the bloc. Border crossings could now be tightened, and pressure could increase for unification, prompting instability in both places. | Scotland, which voted in 2014 to remain in the United Kingdom, may revisit that referendum. Northern Ireland has an open border with the Republic of Ireland, a member of the bloc. Border crossings could now be tightened, and pressure could increase for unification, prompting instability in both places. |
| In the most ominous scenario, there could be a revival of sectarian violence that plagued Northern Ireland for three decades until a power-sharing agreement was reached in 1998. | In the most ominous scenario, there could be a revival of sectarian violence that plagued Northern Ireland for three decades until a power-sharing agreement was reached in 1998. |
| • President Obama said in a statement: “The people of the United Kingdom have spoken, and we respect their decision.” He pledged that the U.K. and the E.U. would remain “indispensable partners of the United States” and that Britain’s “special relationship” with the United States would endure. | |
| • Hillary Clinton: “We respect the choice the people of the United Kingdom have made. Our first task has to be to make sure that the economic uncertainty created by these events does not hurt working families here in America.” | • Hillary Clinton: “We respect the choice the people of the United Kingdom have made. Our first task has to be to make sure that the economic uncertainty created by these events does not hurt working families here in America.” |
| • Donald J. Trump: “I said this was going to happen, and I think that it’s a great thing.” | • Donald J. Trump: “I said this was going to happen, and I think that it’s a great thing.” |
| The British people “have declared their independence from the European Union, and have voted to reassert control over their own politics, borders and economy,” Mr. Trump said. “A Trump administration pledges to strengthen our ties with a free and independent Britain.” | The British people “have declared their independence from the European Union, and have voted to reassert control over their own politics, borders and economy,” Mr. Trump said. “A Trump administration pledges to strengthen our ties with a free and independent Britain.” |
| • Chancellor Angela Merkel of Germany expressed disappointment with the vote and called for European unity. “Our goal should be to create a future relationship between Great Britain and the European Union that is close and partner-like.” | • Chancellor Angela Merkel of Germany expressed disappointment with the vote and called for European unity. “Our goal should be to create a future relationship between Great Britain and the European Union that is close and partner-like.” |
| • Moscow maintained its stance that the British referendum was of little direct concern. President Vladimir V. Putin said, however: “This will certainly have consequences for Britain, for Europe and for us. The consequences will be global, they are inevitable; they will be both positive and negative.” | • Moscow maintained its stance that the British referendum was of little direct concern. President Vladimir V. Putin said, however: “This will certainly have consequences for Britain, for Europe and for us. The consequences will be global, they are inevitable; they will be both positive and negative.” |
| • The French far-right cheered the vote, with Marine Le Pen, the leader of the National Front party, vowing to push for a similar referendum there. | • The French far-right cheered the vote, with Marine Le Pen, the leader of the National Front party, vowing to push for a similar referendum there. |