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Five Years After Brexit: Is The UK Better Off?

On January 31, 2020, the United Kingdom officially left the European Union, marking the end of nearly five decades of membership that had ensured free movement and trade with 27 other European nations. For Brexit supporters, this was a triumph, with the UK regaining control over its borders, laws, and economy. For its opponents, it represented isolation and a decline in global stature. Five years later, the UK is still grappling with the economic, social, and cultural ramifications of the decision.

Economic Consequences And Adjustments

Political scientist Anand Menon, director of the think tank Britain in a Changing Europe, describes the impact of Brexit as “profound” and believes that it has reshaped the UK’s economy. The years of deindustrialization cuts to public spending, and high immigration had created fertile ground for the argument that the UK needed to “take back control.” Despite the 52%-48% result of the 2016 referendum, the aftermath has been complicated.

After years of disagreements on how to navigate the separation, including the resignation of Prime Minister Theresa May, Boris Johnson promised to “get Brexit done,” leading to an agreement on Christmas Eve 2020. But this political departure has come at a high cost. Brexit has disrupted trade and supply chains, creating new economic barriers with the EU, which accounted for half of the UK’s trade.

In the wake of the pandemic and Russia’s invasion of Ukraine, the economic landscape has become even more unpredictable, making it difficult to isolate the full impact of Brexit from other global events. Nonetheless, there are clear signs that the UK’s economy has faced challenges, especially in trade and labor.

The Immigration Paradox

One of the key promises of Brexit was to reduce immigration, but the reality has been the opposite. Despite the end of free movement from EU countries, immigration to the UK has increased, with the government issuing more work visas to non-EU nationals than before Brexit. The rise of immigration has placed additional strain on the country’s services and housing, contributing to the sense of disillusionment for those who supported the exit as a means to curb migration.

Shifting International Dynamics

The UK’s position on the world stage has also changed since Brexit. The country now finds itself caught between Europe and its so-called “special relationship” with the United States. As populist movements rise globally, including the return of Donald Trump to power in the US, the UK faces a more uncertain future, with the international landscape less forgiving than it was in 2016. According to Menon, “The world is much less forgiving now than it was in 2016.”

Public Sentiment And The Future Of EU Relations

Polls show that public opinion on Brexit has soured over the years, with many now viewing it as a mistake. However, rejoining the EU seems unlikely, as the wounds of separation remain fresh. Prime Minister Keir Starmer, elected in 2024, has expressed a desire to “reboot” relations with the EU but has ruled out rejoining the single market or customs union. Instead, he aims for modest changes, such as facilitating artist touring and recognizing professional qualifications, alongside enhanced cooperation on law enforcement and security.

The EU has responded positively to Starmer’s approach, recognizing the shift in tone from previous UK leadership. However, with rising populism and internal challenges, the EU’s priorities have shifted, and the UK is no longer at the top of the agenda.

Five years after Brexit, the UK’s future remains uncertain. While some of the initial promises of sovereignty have materialized, the economic, social, and political challenges stemming from the decision are far from resolved. The country’s strained relationship with Europe and the changing dynamics on the global stage suggest that the full consequences of Brexit may continue to unfold for years to come.

Strained Household Finances: Eurostat Data Reveals Persistent Payment Delays Across Europe and in Cyprus

Improved Financial Resilience Amid Ongoing Strains

Over the past decade, Cypriot households have significantly increased their ability to manage debts—not only bank loans but also rent and utility bills. However, recent Eurostat data indicates that Cyprus continues to lag behind the European average when it comes to covering financial obligations on time.

Household Coping Strategies and the Limits of Payment Flexibility

While many families are managing their fixed expenses with relative ease, one in three Cypriots struggles to cover unexpected costs. This delicate balancing act highlights how routine payments such as mortgage installments, rent, and utility bills are met, but precariously so, with little room for unplanned financial shocks.

Breaking Down Payment Delays Across the European Union

Eurostat reports that nearly 9.2% of the EU population experienced delays with their housing loans, rent, utility bills, or installment payments in 2024. The situation is more acute among vulnerable groups: 17.2% of individuals in single-parent households with dependent children and 16.6% in households with two adults managing three or more dependents faced payment delays. In every EU nation, single-parent households exhibited higher delay rates compared to the overall population.

Cyprus in the Crosshairs: High Rates of Financial Delays

Although Cyprus recorded a notable 19.1 percentage point improvement from 2015 to 2024 in delays related to mortgages, rent, and utility bills, the island nation still ranks among the top five countries with the highest delay rates. As of 2024, 12.5% of the Cypriot population had outstanding housing loans or rent and overdue utility bills. In contrast, Greece tops the list with 42.8%, followed by Bulgaria (18.7%), Romania (15.3%), Spain (14.2%), and other EU members. Notably, 19 out of 27 EU countries reported delay rates below 10%, with Czech Republic (3.4%) and Netherlands (3.9%) leading the pack.

Selective Improvements and Emerging Concerns

Between 2015 and 2024, the overall EU population saw a 2.6 percentage point decline in payment delays. Despite this, certain countries experienced increases: Luxembourg (+3.3 percentage points), Spain (+2.5 percentage points), and Germany (+2.0 percentage points) saw a rise in payment delays, reflecting underlying economic pressures that continue to challenge financial stability.

Economic Insecurity and the Unprepared for Emergencies

Another critical indicator explored by Eurostat is the prevalence of economic insecurity—the proportion of the population unable to handle unexpected financial expenses. In 2024, 30% of the EU population reported being unable to cover unforeseen costs, a modest improvement of 1.2 percentage points from 2023 and a significant 7.4 percentage point drop compared to a decade ago. In Cyprus, while 34.8% still report difficulty handling emergencies, this marks a drastic improvement from 2015, when the figure stood at 60.5%.

A Broader EU Perspective

Importantly, no EU country in 2024 had more than half of its population facing economic insecurity—a notable improvement from 2015, when over 50% of the population in nine countries reported such challenges. These figures underscore both progress and persistent vulnerabilities within European households, urging policymakers to consider targeted measures for enhancing financial resilience.

For further insights and detailed analysis, refer to the original reports on Philenews and Housing Loans.

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