Tuesday

22nd Oct 2019

Opinion

Brexit: Made in UK, designed in Brussels

  • British prime minister David Cameron at a EU summit. If the British vote for Brexit, the EU will be reaping what it has sown. (Photo: Consillium)

If the British vote for Brexit, the European Union will be reaping what it has sown.

In 1992, Denmark voted against the Maastricht Treaty, which established the possibility of creating a common European currency. In France's referendum on the same issue, only 51.1 percent voted in favour.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 18 year's of archives. 30 days free trial.

... or join as a group

What if Europe’s leaders had listened to the doubts of their citizens and ditched the Maastricht Treaty?

The euro enabled countries to borrow more cheaply than they ever could have done without access to the ECB’s cheap financing. But this wasn’t a good thing.

It allowed Belgium, Greece and Italy to postpone necessary public sector reforms. As a result, the public sector and the public debt burden were allowed to grow even bigger.

It led to property bubbles and massive private debt in Ireland and Spain, which forced both countries to beg for a bailout. It led to transfers between countries, through the bailout funds and the ECB, and between taxpayers and banks. For example in Greece, the banks were able to dump a large part of their exposure on to eurozone taxpayers.

The common currency threatens the EU

The conditions linked to those transfers, in the form of a Troika or a Memorandum of Understanding, evoked a lot of anger in those countries forced to comply with the conditions.

Savers, insurance companies and pensioners in Germany, the Benelux and elsewhere have expressed their anger at the ECB using loose monetary policies, for example low and negative interest rates, to keep the euro project alive.

Italy’s GDP per capita is smaller than before it joined the euro. The “banking union”, common Eurozone regulation and supervision for banks, has the UK government worried about eurozone protectionism, fearing non-eurozone banks may one day no longer enjoy access to the single market without having to comply with eurozone rules.

In many countries, anger about the economic misery brought about by the euro debt machine translates into a vote for parties keen to leave the EU. In short, the common currency has ended up threatening the EU.

Anti-EU sentiment

Was the euro needed for countries to trade? No, it wasn’t. The UK, Poland and Sweden are happily trading without being a member. Was it needed to force a crisis which could then be abused to centralise power and organise transfers? Yes it was.

There were the referendums on the Nice Treaty, rejected by the Irish in 2001, the “European Constitution”, rejected by the French and the Dutch in 2005, and the Lisbon Treaty, rejected again by the Irish in 2008.

Time and again voters were asked to vote for a second time on these projects which boil down to transfers of power to the EU policy level, either in the form of scrapping vetoes or in the form of the development of new useless bureaucracies, such as an “EU Foreign Ministry” or “EU Council Presidency”.

Last year, the EU lost two referendums. In December, the Danes vote against handing over more powers for the country to be able to continue Europol cooperation, as demanded by the EU. The EU Commission responded that such flexibility was “impossible”.

In July, Greece rejected the terms attached to its third bailout package. This essentially boiled down to a vote for “Grexit”, something which could have been tried, given that the Greek banking system was frozen anyway. It could have meant an alternative to continued fiscal transfers and interventions into national budgetary decisions. Both have created a lot of discontent and anti-EU sentiment since 2010.

Scrap barriers to trade

Last year, there also was the decision to outvote Central and Eastern Europe on the sensitive issue of spreading out refugees, which isn’t even possible in a passport-free zone but which was decided to divert attention from criticism on Angela Merkel’s controversial refugee policy and to organise yet another transfer of power to the EU level.

Finally, this year, David Cameron’s proposals to bridge the gap between the EU and citizens were met with a lukewarm reaction. His proposal, for example, to allow groups of national parliaments to block EU proposals was watered down so as to make it almost impossible to be used.

Was it really so hard to listen to the population’s scepticism? A recent Pew poll has shown that a majority in EU countries want to return powers from the EU back to member states.

Few Europeans are annoyed that the EU makes sure Ryanair and Wizz Air are allowed to operate everywhere. People just don't think the EU should be meddling with national budgets, organising fiscal transfers or micromanaging sensitive national decisions on asylum policy. If the EU wants to become popular again, it must not go there and focus on its core mission: scrapping barriers to trade.

If Brexit happens and is the beginning of the end of the EU project, many of those responsible are to be found in Brussels.

Pieter Cleppe represents independent think tank Open Europe in Brussels

Disclaimer

The views expressed in this opinion piece are the author's, not those of EUobserver.

Tusk: Brexit talks could take seven years

Council chief warned UK could face long divorce from EU, as it could take up to seven years before the new relationship with Britain would be approved by other member states.

Cameron warns of Brexit 'madness'

In an TV debate three weeks before the EU membership referendum, the British prime minister defended his promise to curb migration and warned that leaving the EU would be "economic self-harm".

Europe's empty fortress

It is too easy only to criticise the rightists and their fixation with barbed wire, Trump for his wall on the border with Mexico, Orban for his xenophobia.

News in Brief

  1. Four businessmen charged in Slovak journalist murder
  2. Erdogan accuses EU of 'standing by terrorists' in Syria
  3. Migrants riot in Maltese camp
  4. Spanish PM refuses dialogue with Catalonia president
  5. Putin: Russia will help Africa without 'conditions'
  6. Almost 200 arrests in Catalonia independence protests
  7. Report: Russian hackers used Iranian cover to attack UK
  8. Next EU economy chief calls for looser budget policies

Defending the defenders: ombudsmen need support

Ombudsmen are often coming under attack or facing different kinds of challenges. These can include threats, legal action, reprisals, budget cuts or a limitation of their mandate.

Column

The benefits of being unpopular

Paradoxically, the lack of popularity may be part of the strength of the European project. Citizens may not be super-enthusiastic about the EU, but when emotions run too high in politics, hotheads may take over.

Stakeholders' Highlights

  1. UNESDAUNESDA welcomes Nicholas Hodac as new Director General
  2. Nordic Council of MinistersBrussels welcomes Nordic culture
  3. UNESDAUNESDA appoints Nicholas Hodac as Director General
  4. UNESDASoft drinks industry co-signs Circular Plastics Alliance Declaration
  5. FEANIEngineers Europe Advisory Group: Building the engineers of the future
  6. Nordic Council of MinistersNew programme studies infectious diseases and antibiotic resistance
  7. UNESDAUNESDA reduces added sugars 11.9% between 2015-2017
  8. International Partnership for Human RightsEU-Uzbekistan Human Rights Dialogue: EU to raise key fundamental rights issues
  9. Nordic Council of MinistersNo evidence that social media are harmful to young people
  10. Nordic Council of MinistersCanada to host the joint Nordic cultural initiative 2021
  11. Vote for the EU Sutainable Energy AwardsCast your vote for your favourite EUSEW Award finalist. You choose the winner of 2019 Citizen’s Award.
  12. Nordic Council of MinistersEducation gets refugees into work

Latest News

  1. Macron breaks Balkans promise in quest for EU dominance
  2. Snap elections in North Macedonia after EU rejection
  3. UK opposition MPs attack new Brexit deal
  4. Deep divisions on display over post-Brexit EU budget
  5. Juncker: 'Historic mistake' against Balkan EU hopefuls
  6. EU leaders spent just 12 minutes on climate
  7. Crunch Brexit vote in UK This WEEK
  8. EU envoy sheds light on weird US diplomacy

Stakeholders' Highlights

  1. Counter BalanceSign the petition to help reform the EU’s Bank
  2. UNICEFChild rights organisations encourage candidates for EU elections to become Child Rights Champions
  3. UNESDAUNESDA Outlines 2019-2024 Aspirations: Sustainability, Responsibility, Competitiveness
  4. Counter BalanceRecord citizens’ input to EU bank’s consultation calls on EIB to abandon fossil fuels
  5. International Partnership for Human RightsAnnual EU-Turkmenistan Human Rights Dialogue takes place in Ashgabat
  6. Nordic Council of MinistersNew campaign: spot, capture and share Traces of North
  7. Nordic Council of MinistersLeading Nordic candidates go head-to-head in EU election debate
  8. Nordic Council of MinistersNew Secretary General: Nordic co-operation must benefit everybody
  9. Platform for Peace and JusticeMEP Kati Piri: “Our red line on Turkey has been crossed”
  10. UNICEF2018 deadliest year yet for children in Syria as war enters 9th year
  11. Nordic Council of MinistersNordic commitment to driving global gender equality
  12. International Partnership for Human RightsMeet your defender: Rasul Jafarov leading human rights defender from Azerbaijan

Join EUobserver

Support quality EU news

Join us