While there have been people who have called for withdraw, such as UKIP, no mainstream politician has given it serious consideration. Today it appears that the inept and intellectually challenged Education Secretary Michael Gove believes the UK should leave (with support from, among others, the giant brain of Iain Duncan-Smith).
I have a balanced and tolerant view of Mr Gove, but there is an economic argument for leaving the EU and that debate must now be had. The result will determine nothing less than the economic future of the UK.
The argument for joining the EEC in 1973 was that of trade creation. Barriers to trade would be eliminated between the UK and the other members and the amount of trade and specialisation would increase making everyone better off. This is classic stuff and exactly the sort of thing economists advise countries to do if they want to grow up to be big and strong.
Along with the lowering of trade barriers came political co-operation. This has included a European Parliament and a European Court. EU law supersedes UK law. This is what people like Michael Gove and UKIP object to, it restricts the ability of the UK government to act.
So is there a case for leaving the EU? Well actually yes. The result will depend on the terms of leaving. The ideal solution for the UK would be to get the same deal as Greenland when it left. That put Greenland in the same position as Norway - a part of the single EU market, but not a member.
Norway gets all the benefits of specialisation and trade, but pays nothing towards the running of the EU, has no say in the rules and gets none of the political benefits of a single European voice.
The Greenland option is going to be very hard to stop politically. The question to be decided is 'Do you want Britain to be a simple economic partner of Europe, or a political partner in Europe?'
Under starters orders. This is going to run longer than the debt crisis!
I find having a balanced and tolerant view of Michael Gove's views a little bit more difficult. However, it is true that EU membership for the UK is by no means a certainty any more. Leaving the EU would undoubtedly have repercussions for UK international trade - the EU is our biggest export market (57% of our exports), and EU membership ensures good terms of trade with EU nations. However, moves by France and Germany for a more federal Europe may force our hand. We can only wait and see...
ReplyDeleteSeen as it is likely that our relationship with Europe is going to change, should we have a vote on our relationship so that we could vote on whether we want to be members of the EU, with the option of the euro open, or if we want to become members of a European Community, where we can enjoy a free trade relationship.
ReplyDeleteIf leaving the EU is beneficial for the UK in the long term, then the government should by all means leave. It could always resort to the ways of Norway and Greenland if that is a better solution than leaving completely. However, they should be prepared for the limits on issues such as trade and law enforcement.
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