The decision of the British people to leave the EU has shocked many people. Even those fearing that the referendum may result in the undoing of the work of many previous years for a stronger union of the European nations, had a sense of comfort that the "Remain Vote" campaign would carry the day. Now, when the people have spoken, the full impact of the collective decision has started to unravel.
Hit immediately were the stocks and currency markets. British Sterling fell to a record low of more than 30 years. Before the situation could get out of control, the Bank of England had to announce that all necessary measures would be taken to control the slide of the currency.
Another quick casualty was the British Prime Minister David Cameron. As the referendum sealed his fate, Cameron announced that he will resign by October when his Conservative party is expected to meet to elect the new leader to lead the country. Cameron's position became untenable when he put all of his energy into the campaign to keep the country in the EU. Now, his successor will have to deal with the fallout of the decision, and negotiate the process leading to a completion of a safe exit.
The referendum is also a big blow to the future of the EU. The union may not come apart immediately but pressure is rising on other members to seek a fresh mandate from the people about the future of the grouping. The co-chair of Germany's EU-sceptic Alternative for Germany (AfD) party, Joerg Meuthen, wrote on his Facebook that it was time for change and his country should also be allowed to vote on its EU membership.
Elsewhere, Danish Prime Minister Lars Lokke Rasmussen had to announce that his country would not seek referendum on the issue of association with the EU. He had to respond as Eurosceptic Danish People's Party demanded a referendum. As leaders are trying to keep the sentiments of their people under control, the issue of the EU's political destiny is a problem in hand.
The Leave Vote also has economic repercussions both for the EU and Britain. We don't have the numbers of how many billions would be lost. But fear is growing and leading German institutions have demanded that the process of the British exit should be completed as early as possible to avoid a negative impact on the country as well as other EU members. Such demands would be made from other countries to ward off uncertainties.
The British vote in the referendum was divided on regional lines, as both Northern Ireland and Scotland voted in favor of remaining in the EU. Since the overall vote negated the will of the people of these two critical regions, demands will be made about a referendum over the issue of staying with Britain. Already, Scots have voted in a critical referendum, which was won by those in favor of the union. The Scottish Nationalist Party signaled for a new mandate after the Brexit vote.
Another impart aspect of the Brexit would be the rise of nationalist sentiment across Europe. After decades of hard work to make borders irrelevant and subjugate the narrow nationalistic aspirations, suddenly, the Britons have spoken in the language of hardcore nationalism. They apparently put the so-called interests of the country ahead of the large European community. It will be a bad but attractive example for others to follow.
The rise of xenophobia due to rising numbers of immigrants is another aspect of the Leave Vote that Britain and other EU nations will have to tackle. The opponent of Britain's EU membership played with real and imaginary fears that wave after wave of immigrants would descend on London and other cities, skewing up the markets of housing, education, employment and healthcare.
There were complaints of under the surface racism during the process leading up to the vote on June 23. Some important pro-Leave camp leaders like Tory peer Baroness Sayeeda Warsi had to call it quits over the fear that the campaign was unleashing hatred and racism. After tasting success by employing a particular brand of tactics to achieve an objective, it is feared that some leaders would increasingly resort to such methods in the future. It will have devastating results for all of Europe as there is no limit to the politics of hatred.