| UNITED KINGDOM |
Economy:
The UK, a leading trading power and financial center, is the third largest economy in
Europe after Germany and France. Over the past two decades, the government has
greatly reduced public ownership and contained the growth of social welfare programs.
Agriculture is intensive, highly mechanized, and efficient by European standards,
producing about 60% of food needs with less than 2% of the labor force. The UK has large
coal, natural gas, and oil resources, but its oil and natural gas reserves are declining and
the UK became a net importer of energy in 2005. Services, particularly banking, insurance,
and business services, account by far for the largest proportion of GDP while industry
continues to decline in importance. After emerging from recession in 1992, Britain's
economy enjoyed the longest period of expansion on record during which time growth
outpaced most of Western Europe. In 2008, however, the global financial crisis hit the
economy particularly hard, due to the importance of its financial sector. Sharply declining
home prices, high consumer debt, and the global economic slowdown compounded
Britain's economic problems, pushing the economy into recession in the latter half of 2008
and prompting the then BROWN government to implement a number of measures to
stimulate the economy and stabilize the financial markets; these include nationalizing parts
of the banking system, cutting taxes, suspending public sector borrowing rules, and
moving forward public spending on capital projects. Facing burgeoning public deficits and
debt levels, the CAMERON government in 2010 initiated a five-year austerity program,
which aims to lower London's budget deficit from over 11% of GDP in 2010 to nearly 1% by
2015. The Bank of England periodically coordinates interest rate moves with the European
Central Bank, but Britain remains outside the European Economic and Monetary Union
(EMU).
GDP (purchasing power parity):
$2.173 trillion (2010 est.)
country comparison to the world: 8
$2.146 trillion (2009 est.)
$2.256 trillion (2008 est.)
note: data are in 2010 US dollars
GDP (official exchange rate):
$2.247 trillion (2010 est.)
GDP - real growth rate:
1.3% (2010 est.)
country comparison to the world: 164
-4.9% (2009 est.)
-0.1% (2008 est.)
GDP - per capita (PPP):
$34,800 (2010 est.)
country comparison to the world: 37
$34,600 (2009 est.)
$36,600 (2008 est.)
note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 0.9%
industry: 22.1%
services: 77.1% (2010 est.)
Exports - commodities:
manufactured goods, fuels, chemicals; food, beverages, tobacco
Exports - partners:
US 14.71%, Germany 11.06%, France 8%, Netherlands 7.79%, Ireland 6.89%, Belgium
4.65%, Spain 4% (2009)
Imports - commodities:
manufactured goods, machinery, fuels; foodstuffs
Imports - partners:
Germany 12.87%, US 9.74%, China 8.88%, Netherlands 6.94%, France 6.64%, Belgium
4.86%, Norway 4.84%, Ireland 4.01%, Italy 3.99% (2009)
Executive Summary extracted from IMF Report - United Kingdom: Financial
System Stability Assessment (August 2011)
The past four years have witnessed a crisis of unprecedented proportion in the U.K.
financial sector and its regulatory framework. Significant risks posed by large, complex,
and interconnected financial institutions crystallized, exposing weaknesses in the policy
and regulatory framework that had enabled their expansion and complexity, both
domestically and internationally. This report is written at a time when the key decisions on
the role of the financial sector and the regulatory framework are still being formulated.
Given the gaps in the crisis management framework, the authorities initially resorted to
ad hoc solutions, but thereafter rapidly introduced a new framework. The lack of crisis
management mechanisms meant disruptive and expensive outcomes in the early stages of
the crisis. However, decisive actions were taken and an improved framework, including an
enhanced deposit insurance scheme and a new Special Resolution Regime, was
implemented to resolve or restructure failing institutions.
U.K. banks have made progress in repairing their balance sheets, but the recovery
process is not yet complete. The two large banks with government stakes are
implementing their restructuring plans, but important challenges remain. Stress tests
suggest adequate levels of capitalization under severe macroeconomic scenarios—with the
caveat that lender forbearance may, in some cases, have masked the extent of risks,
given the high indebtedness of the household and commercial real estate sectors. Risks
from exposures to vulnerable European sovereigns seem manageable, but potential major
spillovers to the private sector in those countries and to core European banks could lead
to solvency concerns. Also, although liquidity positions have improved, U.K. banks are
vulnerable to sustained disruptions in funding markets. The new discount window facility
and prepositioning of collateral aimed at facilitating quick use of the facility are important in
managing such extreme stress events.
Requiring financial institutions to build up capital and liquidity buffers is thus proper
and necessary. The aggregate balance sheet of the banking sector, at about five times
GDP, still remains sizeable. The Financial Services Authority (FSA) has imposed stringent
capital and liquidity regulations that require resilience under stressed conditions and
approval of dividends and variable remuneration is linked to the outcome of stress tests.
These safeguards are appropriate, given the specific vulnerabilities of the U.K. financial
system, and should be accompanied by home-host coordination to address liquidity needs
in times of stress. In particular, U.K. supervisors need to monitor closely the liquidity
position of large foreign branches, which have systemic relevance for the U.K. financial
system.
Supervisory approach for banks and insurers need to be further strengthened. Further
improvement in the FSA’s assessment of the robustness of banks’ processes such as loan
classification, impairment determination, and valuation practices, introduction of a
proactive intervention framework, and greater level of involvement and engagement of
FSA senior management in the supervision of individual banks and insurers is needed.
Plans to enhance these aspects of supervision are welcome. As in many other countries, U.
K. insurers generally weathered the recent financial crisis better than banks. Going
forward, the FSA needs to monitor closely potential systemic risks from insurers engaging
in ‘bank like’ activities and their interconnections with the banking sector. It is also
important that the regulatory authority be provided with enforcement and resolution powers
at the holding company level complemented with adequate checks and balances, in
particular strong supervision, to avoid moral hazard.
The United Kingdom lags behind many other countries in standards for the public
disclosure of financial sector data. To enable market discipline, the FSA should enforce
publication of regular and comparable data on an institution basis for banks, insurance
companies, and securities firms, including data from prudential returns, as appropriate.
Progress has been made in addressing the too-important-to-fail problem, but more
needs to be done. Regulatory ratios have been strengthened and a bank levy on
wholesale funding has been introduced. Ring-fencing of retail operations and the
establishment of depositor preference, as proposed by the Independent Commission on
Banking (ICB), will improve resolvability of the retail entity. However, ring-fencing must be
weighed against the costs of such an approach and does not necessarily improve
resolvability of the whole entity unless complemented by measures that improve loss-
absorption capacity (capital and liquidity surcharges, contingent capital, debt subject to
bail-in), recovery and resolution plans, and cross-border resolution arrangements.
International collaboration will be critical for progress, and the U.K. authorities should
continue exercising leadership on these matters.
The transition to the “triple peak” model risks diversion of resources from efforts to
enhance supervision of the financial sector, which is still in recovery mode. The reform
proposals to clarify the mandates of the prudential regulator, financial conduct authority,
and macroprudential authority are welcome. However, it is critical to build on the progress
made on strengthening supervision of the banking and insurance sector. This may require
additional supervisory resources—a combination of enhanced skills and additional staff.
Oversight of investment banking activities as well as of core market infrastructure
needs to be improved further in the new regulatory structure. The United Kingdom is a
financial markets hub and a major home and host country to bank and nonbank financial
institutions. Oversight of investment banking and trading activities are a challenge, given
the limitations to what the United Kingdom can do alone, particularly with respect to
institutions that it hosts, such as branches of foreign bank entities. Without intensive
supervision of investment bank risk taking, domestic and global financial stability cannot be
assured. Gaps in this domain must be addressed through international cooperation, in
particular across the key financial centers. It is critical that financial market infrastructure,
including Central Counterparties (CCPs), also maintain robust prudential and risk-
management standards and that contingency plans are put in place to deal with potential
failures.
Click here to read full report
Click here to read United Kingdom: Report on the Observance of Standards and Codes
(August 2011)
Banking
According to the European Banking Federation, the UK banking sector is the largest in
Europe based on asset value, with 332 banks authorized to do business in the UK, retail
deposits of GBP 3.6 trillion (USD 5.8 trillion) and an estimated 50 percent of all the EU’s
investment banking activity. The total assets of the UK banking sector were about 7.2
trillion GBP (USD 11.5 trillion) 2009.
During 2008 and 2009As a result of the financial crisis, the UK government nationalized
two banks, Northern Rock and Bradford & Bingley, and took significant stakes in the Royal
Bank of Scotland (RBS) and Lloyds Banking Group. The government's stake in these
banks is managed, at arm's-length, by UK Financial Investments (UKFI), a company wholly
owned by HM Treasury.
With the exception of Bradford & Bingley (which will be wound down), UKFI will execute
an investment strategy for disposing of the investments through sale, redemption or buy-
back. The UK government does not intend to be a permanent investor in UK financial
institutions. The government is preparing for the sale of Northern Rock, back to the
private sector, probably in the first half of 2011. The rescue packages were authorized
by the European Commission under EC Treaty state aid rules, which ensures state aid
packages do not result in significant market distortions. At the end of 2009, the
European Commission approved state aid measures for RBS and Lloyds but insisted on
substantial divestments to limit market distortions.
Stock Exchange
The London Stock Exchange is one of the most active equity markets in the world.
London's markets have the advantage of bridging the gap between the day's trading in
the Asian markets and the opening of the U.S. market. This bridge effect is also evident
as many Russian and Central European companies have used London stock exchanges
to tap global capital markets. The Alternative Investment Market (AIM), established in
1995 as a sub-market of the London Stock Exchange, is specifically designed for
smaller, growing companies. The AIM has a more flexible regulatory system than the
Main Market and has no minimum market capitalization requirements. Since its launch,
the AIM has raised approximately GBP 60 billion (USD 96 billion) for more than 3,100
companies.
The UK, a leading trading power and financial center, is the third largest economy in
Europe after Germany and France. Over the past two decades, the government has
greatly reduced public ownership and contained the growth of social welfare programs.
Agriculture is intensive, highly mechanized, and efficient by European standards,
producing about 60% of food needs with less than 2% of the labor force. The UK has large
coal, natural gas, and oil resources, but its oil and natural gas reserves are declining and
the UK became a net importer of energy in 2005. Services, particularly banking, insurance,
and business services, account by far for the largest proportion of GDP while industry
continues to decline in importance. After emerging from recession in 1992, Britain's
economy enjoyed the longest period of expansion on record during which time growth
outpaced most of Western Europe. In 2008, however, the global financial crisis hit the
economy particularly hard, due to the importance of its financial sector. Sharply declining
home prices, high consumer debt, and the global economic slowdown compounded
Britain's economic problems, pushing the economy into recession in the latter half of 2008
and prompting the then BROWN government to implement a number of measures to
stimulate the economy and stabilize the financial markets; these include nationalizing parts
of the banking system, cutting taxes, suspending public sector borrowing rules, and
moving forward public spending on capital projects. Facing burgeoning public deficits and
debt levels, the CAMERON government in 2010 initiated a five-year austerity program,
which aims to lower London's budget deficit from over 11% of GDP in 2010 to nearly 1% by
2015. The Bank of England periodically coordinates interest rate moves with the European
Central Bank, but Britain remains outside the European Economic and Monetary Union
(EMU).
GDP (purchasing power parity):
$2.173 trillion (2010 est.)
country comparison to the world: 8
$2.146 trillion (2009 est.)
$2.256 trillion (2008 est.)
note: data are in 2010 US dollars
GDP (official exchange rate):
$2.247 trillion (2010 est.)
GDP - real growth rate:
1.3% (2010 est.)
country comparison to the world: 164
-4.9% (2009 est.)
-0.1% (2008 est.)
GDP - per capita (PPP):
$34,800 (2010 est.)
country comparison to the world: 37
$34,600 (2009 est.)
$36,600 (2008 est.)
note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 0.9%
industry: 22.1%
services: 77.1% (2010 est.)
Exports - commodities:
manufactured goods, fuels, chemicals; food, beverages, tobacco
Exports - partners:
US 14.71%, Germany 11.06%, France 8%, Netherlands 7.79%, Ireland 6.89%, Belgium
4.65%, Spain 4% (2009)
Imports - commodities:
manufactured goods, machinery, fuels; foodstuffs
Imports - partners:
Germany 12.87%, US 9.74%, China 8.88%, Netherlands 6.94%, France 6.64%, Belgium
4.86%, Norway 4.84%, Ireland 4.01%, Italy 3.99% (2009)
Executive Summary extracted from IMF Report - United Kingdom: Financial
System Stability Assessment (August 2011)
The past four years have witnessed a crisis of unprecedented proportion in the U.K.
financial sector and its regulatory framework. Significant risks posed by large, complex,
and interconnected financial institutions crystallized, exposing weaknesses in the policy
and regulatory framework that had enabled their expansion and complexity, both
domestically and internationally. This report is written at a time when the key decisions on
the role of the financial sector and the regulatory framework are still being formulated.
Given the gaps in the crisis management framework, the authorities initially resorted to
ad hoc solutions, but thereafter rapidly introduced a new framework. The lack of crisis
management mechanisms meant disruptive and expensive outcomes in the early stages of
the crisis. However, decisive actions were taken and an improved framework, including an
enhanced deposit insurance scheme and a new Special Resolution Regime, was
implemented to resolve or restructure failing institutions.
U.K. banks have made progress in repairing their balance sheets, but the recovery
process is not yet complete. The two large banks with government stakes are
implementing their restructuring plans, but important challenges remain. Stress tests
suggest adequate levels of capitalization under severe macroeconomic scenarios—with the
caveat that lender forbearance may, in some cases, have masked the extent of risks,
given the high indebtedness of the household and commercial real estate sectors. Risks
from exposures to vulnerable European sovereigns seem manageable, but potential major
spillovers to the private sector in those countries and to core European banks could lead
to solvency concerns. Also, although liquidity positions have improved, U.K. banks are
vulnerable to sustained disruptions in funding markets. The new discount window facility
and prepositioning of collateral aimed at facilitating quick use of the facility are important in
managing such extreme stress events.
Requiring financial institutions to build up capital and liquidity buffers is thus proper
and necessary. The aggregate balance sheet of the banking sector, at about five times
GDP, still remains sizeable. The Financial Services Authority (FSA) has imposed stringent
capital and liquidity regulations that require resilience under stressed conditions and
approval of dividends and variable remuneration is linked to the outcome of stress tests.
These safeguards are appropriate, given the specific vulnerabilities of the U.K. financial
system, and should be accompanied by home-host coordination to address liquidity needs
in times of stress. In particular, U.K. supervisors need to monitor closely the liquidity
position of large foreign branches, which have systemic relevance for the U.K. financial
system.
Supervisory approach for banks and insurers need to be further strengthened. Further
improvement in the FSA’s assessment of the robustness of banks’ processes such as loan
classification, impairment determination, and valuation practices, introduction of a
proactive intervention framework, and greater level of involvement and engagement of
FSA senior management in the supervision of individual banks and insurers is needed.
Plans to enhance these aspects of supervision are welcome. As in many other countries, U.
K. insurers generally weathered the recent financial crisis better than banks. Going
forward, the FSA needs to monitor closely potential systemic risks from insurers engaging
in ‘bank like’ activities and their interconnections with the banking sector. It is also
important that the regulatory authority be provided with enforcement and resolution powers
at the holding company level complemented with adequate checks and balances, in
particular strong supervision, to avoid moral hazard.
The United Kingdom lags behind many other countries in standards for the public
disclosure of financial sector data. To enable market discipline, the FSA should enforce
publication of regular and comparable data on an institution basis for banks, insurance
companies, and securities firms, including data from prudential returns, as appropriate.
Progress has been made in addressing the too-important-to-fail problem, but more
needs to be done. Regulatory ratios have been strengthened and a bank levy on
wholesale funding has been introduced. Ring-fencing of retail operations and the
establishment of depositor preference, as proposed by the Independent Commission on
Banking (ICB), will improve resolvability of the retail entity. However, ring-fencing must be
weighed against the costs of such an approach and does not necessarily improve
resolvability of the whole entity unless complemented by measures that improve loss-
absorption capacity (capital and liquidity surcharges, contingent capital, debt subject to
bail-in), recovery and resolution plans, and cross-border resolution arrangements.
International collaboration will be critical for progress, and the U.K. authorities should
continue exercising leadership on these matters.
The transition to the “triple peak” model risks diversion of resources from efforts to
enhance supervision of the financial sector, which is still in recovery mode. The reform
proposals to clarify the mandates of the prudential regulator, financial conduct authority,
and macroprudential authority are welcome. However, it is critical to build on the progress
made on strengthening supervision of the banking and insurance sector. This may require
additional supervisory resources—a combination of enhanced skills and additional staff.
Oversight of investment banking activities as well as of core market infrastructure
needs to be improved further in the new regulatory structure. The United Kingdom is a
financial markets hub and a major home and host country to bank and nonbank financial
institutions. Oversight of investment banking and trading activities are a challenge, given
the limitations to what the United Kingdom can do alone, particularly with respect to
institutions that it hosts, such as branches of foreign bank entities. Without intensive
supervision of investment bank risk taking, domestic and global financial stability cannot be
assured. Gaps in this domain must be addressed through international cooperation, in
particular across the key financial centers. It is critical that financial market infrastructure,
including Central Counterparties (CCPs), also maintain robust prudential and risk-
management standards and that contingency plans are put in place to deal with potential
failures.
Click here to read full report
Click here to read United Kingdom: Report on the Observance of Standards and Codes
(August 2011)
Banking
According to the European Banking Federation, the UK banking sector is the largest in
Europe based on asset value, with 332 banks authorized to do business in the UK, retail
deposits of GBP 3.6 trillion (USD 5.8 trillion) and an estimated 50 percent of all the EU’s
investment banking activity. The total assets of the UK banking sector were about 7.2
trillion GBP (USD 11.5 trillion) 2009.
During 2008 and 2009As a result of the financial crisis, the UK government nationalized
two banks, Northern Rock and Bradford & Bingley, and took significant stakes in the Royal
Bank of Scotland (RBS) and Lloyds Banking Group. The government's stake in these
banks is managed, at arm's-length, by UK Financial Investments (UKFI), a company wholly
owned by HM Treasury.
With the exception of Bradford & Bingley (which will be wound down), UKFI will execute
an investment strategy for disposing of the investments through sale, redemption or buy-
back. The UK government does not intend to be a permanent investor in UK financial
institutions. The government is preparing for the sale of Northern Rock, back to the
private sector, probably in the first half of 2011. The rescue packages were authorized
by the European Commission under EC Treaty state aid rules, which ensures state aid
packages do not result in significant market distortions. At the end of 2009, the
European Commission approved state aid measures for RBS and Lloyds but insisted on
substantial divestments to limit market distortions.
Stock Exchange
The London Stock Exchange is one of the most active equity markets in the world.
London's markets have the advantage of bridging the gap between the day's trading in
the Asian markets and the opening of the U.S. market. This bridge effect is also evident
as many Russian and Central European companies have used London stock exchanges
to tap global capital markets. The Alternative Investment Market (AIM), established in
1995 as a sub-market of the London Stock Exchange, is specifically designed for
smaller, growing companies. The AIM has a more flexible regulatory system than the
Main Market and has no minimum market capitalization requirements. Since its launch,
the AIM has raised approximately GBP 60 billion (USD 96 billion) for more than 3,100
companies.
Background:
The United Kingdom has historically played a
leading role in developing parliamentary
democracy and in advancing literature and
science. At its zenith in the 19th century, the
British Empire stretched over one-fourth of the
earth's surface. The first half of the 20th century
saw the UK's strength seriously depleted in two
world wars and the Irish republic withdraw from
the union. The second half witnessed the
dismantling of the Empire and the UK rebuilding
itself into a modern and prosperous European
nation. As one of five permanent members of
the UN Security Council, a founding member of
NATO, and of the Commonwealth, the UK
pursues a global approach to foreign policy.
The UK is also an active member of the EU,
although it chose to remain outside the
Economic and Monetary Union. The Scottish
Parliament, the National Assembly for Wales,
and the Northern Ireland Assembly were
established in 1999. The latter was suspended
until May 2007 due to wrangling over the peace
process, but devolution was fully completed in
March 2010.
Government type:
constitutional monarchyCapital:
name: London
time difference: UTC 0
daylight saving time: +1hr, begins last Sunday in
March; ends last Sunday in October
Dependent areas:
Anguilla, Bermuda, British Indian Ocean
Territory, British Virgin Islands, Cayman Islands,
Falkland Islands, Gibraltar, Montserrat, Pitcairn
Islands, Saint Helena, South Georgia and the
South Sandwich Islands, Turks and Caicos
Islands
Independence:
England has existed as a unified entity since the
10th century; the union between England and
Wales, begun in 1284 with the Statute of
Rhuddlan, was not formalized until 1536 with an
Act of Union; in another Act of Union in 1707,
England and Scotland agreed to permanently
join as Great Britain; the legislative union of
Great Britain and Ireland was implemented in
1801, with the adoption of the name the United
Kingdom of Great Britain and Ireland; the
Anglo-Irish treaty of 1921 formalized a partition
of Ireland; six northern Irish counties remained
part of the United Kingdom as Northern Ireland
and the current name of the country, the United
Kingdom of Great Britain and Northern Ireland,
was adopted in 1927
National holiday:
the UK does not celebrate one particular
national holiday
Constitution:
unwritten; partly statutes, partly common law
and practice
Legal system:
based on common law tradition with early
Roman and modern
continental influences; has nonbinding judicial
review of Acts of
Parliament under the Human Rights Act of
1998; accepts compulsory
ICJ jurisdiction, with reservations
Suffrage:
18 years of age; universal
Government:
Chief of state: Queen ELIZABETH II (since 6
February 1952); Heir Apparent Prince
CHARLES (son of the queen, born 14
November 1948)
head of government: Prime Minister David
CAMERON (since 11 May 2010)
cabinet: Cabinet of Ministers appointed by the
prime minister
elections: the monarchy is hereditary; following
legislative elections, the leader of the majority
party or the leader of the majority coalition
usually the prime minister
For names of current Ministers, click here.
Disputes - international:
In 2002, Gibraltar residents voted
overwhelmingly by referendum to reject any
"shared sovereignty" arrangement between the
UK and Spain; the Government of Gibraltar
insists on equal participation in talks between
the two countries; Spain disapproves of UK
plans to grant Gibraltar greater autonomy;
Mauritius and Seychelles claim the Chagos
Archipelago (British Indian Ocean Territory),
and its former inhabitants since their eviction in
1965; most Chagossians reside in Mauritius,
and in 2001 were granted UK citizenship, where
some have since resettled; in May 2006, the
High Court of London reversed the UK
Government's 2004 orders of council that
banned habitation on the islands; UK rejects
sovereignty talks requested by Argentina, which
still claims the Falkland Islands (Islas Malvinas)
and South Georgia and the South Sandwich
Islands; territorial claim in Antarctica (British
Antarctic Territory) overlaps Argentine claim
and partially overlaps Chilean claim; Iceland, the
UK, and Ireland dispute Denmark's claim that
the Faroe Islands' continental shelf extends
beyond 200 nm
All the information on this page sourced from
the CIA World Factbook, the US Commercial
Service and relevant FATF M.E.R.
The United Kingdom has historically played a
leading role in developing parliamentary
democracy and in advancing literature and
science. At its zenith in the 19th century, the
British Empire stretched over one-fourth of the
earth's surface. The first half of the 20th century
saw the UK's strength seriously depleted in two
world wars and the Irish republic withdraw from
the union. The second half witnessed the
dismantling of the Empire and the UK rebuilding
itself into a modern and prosperous European
nation. As one of five permanent members of
the UN Security Council, a founding member of
NATO, and of the Commonwealth, the UK
pursues a global approach to foreign policy.
The UK is also an active member of the EU,
although it chose to remain outside the
Economic and Monetary Union. The Scottish
Parliament, the National Assembly for Wales,
and the Northern Ireland Assembly were
established in 1999. The latter was suspended
until May 2007 due to wrangling over the peace
process, but devolution was fully completed in
March 2010.
Government type:
constitutional monarchyCapital:
name: London
time difference: UTC 0
daylight saving time: +1hr, begins last Sunday in
March; ends last Sunday in October
Dependent areas:
Anguilla, Bermuda, British Indian Ocean
Territory, British Virgin Islands, Cayman Islands,
Falkland Islands, Gibraltar, Montserrat, Pitcairn
Islands, Saint Helena, South Georgia and the
South Sandwich Islands, Turks and Caicos
Islands
Independence:
England has existed as a unified entity since the
10th century; the union between England and
Wales, begun in 1284 with the Statute of
Rhuddlan, was not formalized until 1536 with an
Act of Union; in another Act of Union in 1707,
England and Scotland agreed to permanently
join as Great Britain; the legislative union of
Great Britain and Ireland was implemented in
1801, with the adoption of the name the United
Kingdom of Great Britain and Ireland; the
Anglo-Irish treaty of 1921 formalized a partition
of Ireland; six northern Irish counties remained
part of the United Kingdom as Northern Ireland
and the current name of the country, the United
Kingdom of Great Britain and Northern Ireland,
was adopted in 1927
National holiday:
the UK does not celebrate one particular
national holiday
Constitution:
unwritten; partly statutes, partly common law
and practice
Legal system:
based on common law tradition with early
Roman and modern
continental influences; has nonbinding judicial
review of Acts of
Parliament under the Human Rights Act of
1998; accepts compulsory
ICJ jurisdiction, with reservations
Suffrage:
18 years of age; universal
Government:
Chief of state: Queen ELIZABETH II (since 6
February 1952); Heir Apparent Prince
CHARLES (son of the queen, born 14
November 1948)
head of government: Prime Minister David
CAMERON (since 11 May 2010)
cabinet: Cabinet of Ministers appointed by the
prime minister
elections: the monarchy is hereditary; following
legislative elections, the leader of the majority
party or the leader of the majority coalition
usually the prime minister
For names of current Ministers, click here.
Disputes - international:
In 2002, Gibraltar residents voted
overwhelmingly by referendum to reject any
"shared sovereignty" arrangement between the
UK and Spain; the Government of Gibraltar
insists on equal participation in talks between
the two countries; Spain disapproves of UK
plans to grant Gibraltar greater autonomy;
Mauritius and Seychelles claim the Chagos
Archipelago (British Indian Ocean Territory),
and its former inhabitants since their eviction in
1965; most Chagossians reside in Mauritius,
and in 2001 were granted UK citizenship, where
some have since resettled; in May 2006, the
High Court of London reversed the UK
Government's 2004 orders of council that
banned habitation on the islands; UK rejects
sovereignty talks requested by Argentina, which
still claims the Falkland Islands (Islas Malvinas)
and South Georgia and the South Sandwich
Islands; territorial claim in Antarctica (British
Antarctic Territory) overlaps Argentine claim
and partially overlaps Chilean claim; Iceland, the
UK, and Ireland dispute Denmark's claim that
the Faroe Islands' continental shelf extends
beyond 200 nm
All the information on this page sourced from
the CIA World Factbook, the US Commercial
Service and relevant FATF M.E.R.
| KnowYourCountry |
|
| Last Updated: 14 September 2011 |