Sunday

30th Apr 2017

UK better off in EU for now, says eurosceptic think tank

  • Canary Wharf, London: Concern about its prized financial sector is one of the reasons for London's ambivalence about the EU (Photo: harshilshah100)

The UK would be better off staying in the EU, the country's foremost eurosceptic think tank says, amid a growing debate among Conservatives on the merits of a British exit from the European Union.

"From purely a trade perspective, EU membership remains the best option for the UK," Open Europe argues in a report published Monday (11 June).

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

"All the alternatives come with major drawbacks and would all … require negotiation with and the agreement of the other member states, which would come with unpredictable political and economic risks," it continues.

The report examines the idea - gaining traction among some eurosceptic Conservatives - that Britain could leave the EU but maintain its current trade relations, with the EU accounting for 48 percent of total UK goods and services exports.

But it rejects the four touted alternatives. The "Norway model," for example, would free the UK from expensive fishing and farm rules while giving the country access to the single market. However, the UK would have no say over the EU laws it would be obliged to implement.

Meanwhile, the "full-break" - a simple exit without any kind of brokered deal - would see British exporters "suddenly faced with new tariffs."

But the think tank, which is influential within Prime Minister David Cameron's Conservative Party, says "growing public hostility" means it should renegotiate it terms of membership.

"The common agricultural and fisheries policies, EU-wide regional funding, the impact of EU social and employment regulation on the UK economy and contributions to the EU’s budget" are cited as the downsides of membership.

And it notes that its current conclusion that EU membership is beneficial for trade reasons could change if the Union were to become more protectionist in the future.

The current eurozone crisis, likely to prompt treaty change, would be a useful opportunity for the UK to get its preferred "pick and mix" membership.

"As the Eurozone is likely to need a new set of EU Treaty arrangements to move towards further integration, which the UK must approve, Britain will have a unique opportunity to stake out its own model for EU membership."

The report comes as Cameron's Conservative party has been divided between hardliners who want Britain to leave the EU and moderates who want its membership renegotiated.

It also comes amid a wider academic discussion in Britain about its EU future. A recent paper by David Rennie, former Brussels correspondent for The Economist and now the magazine's political editor, suggests London's continued EU membership can no longer be taken for granted.

"It would be a mistake to assume, complacently, that sullen British acceptance of the status quo will continue indefinitely," writes Rennie.

"To a striking and novel degree, when senior officials hold policy seminars or forward-looking strategy debates, it is no longer seen as outlandish or naive to suggest that, if eurozone integration leads to grave clashes with British domestic priorities, Britain might end up better off out. As an idea, the possibility of British withdrawal is becoming normalised."

Meanwhile at the EU level, British recalcitrance may coincide with the sense of urgency within parts of the eurozone that further integration is the only way to solve the single currency crisis.

"We should not stay still because one or other [member state] does not yet want to join in," said German Chancellor Angela Merkel last week making the case for a two-speed Europe when it comes to giving Brussels more powers.

Merkel speaks out for two-speed Europe

German Chancellor Merkel has said she will push ahead with plans for a political union, including more powers to Brussels and a two-speed Europe if necessary.

EU commissioner picks fight with London after UK veto

EU economy chief Olli Rehn has warned the City of London will not escape European regulation of the financial sector and insisted there is firm legal ground for the use of the EU institutions to police a new 'fiscal compact.'

Cameron defends EU veto amid accusations of isolating Britain

In a stormy parliamentary debate highlighting the fall-out with his coalition partner, UK Prime Minister David Cameron struggled to defend his EU veto arguing he had safeguarded financial services from extra regulation, despite Brussels claiming the contrary.

Opinion

Eurozone approaching moment of truth

There may be decisions the euro area has to take to protect its financial stability, which could be detrimental to the rest of the EU if imposed on them, writes George Osborne.

UK promises thorough analysis of EU by 2014

The UK government has announced it will undertake a wide-ranging study of the EU so that any statements it makes about 'meddlesome' Brussels may be in future be backed up by hard evidence.

France still anxious over possibility of Le Pen win

Despite opinion polls that place centrist Macron well ahead of the far-right leader Le Pen in the 7 May presidential run-off, doubts are emerging about his capacity to unite the French people around his candidacy.

News in Brief

  1. Vote of no confidence prepared against Spanish PM
  2. Syria to buy Russian anti-missile system
  3. Germany seeks partial burka ban
  4. Libya has no plan to stop migration flows
  5. EU has no evidence of NGO-smuggler collusion in Libya
  6. Poland gets 'final warning' on logging in ancient forest
  7. Commission gives Italy final warning on air pollution
  8. Romania and Slovenia taken to court over environment policies

Stakeholders' Highlights

  1. European Healthy Lifestyle AllianceCharlotte Hornets' Nicolas Batum Tells Kids to "Eat Well, Drink Well, Move!"
  2. ECR GroupSyed Kamall: We Need a New, More Honest Relationship With Turkey
  3. Counter BalanceParliament Sends Strong Signal to the EIB: Time to Act on Climate Change
  4. ACCARisks and Opportunities of Blockchain and Shared Ledgers Technologies in Financial Services
  5. UNICEFRace Against Time to Save Millions of Lives in Yemen
  6. Nordic Council of MinistersDeveloping Independent Russian-Language Media in the Baltic Countries
  7. Swedish EnterprisesReform of the European Electricity Market: Lessons from the Nordics, Brussels 2 May
  8. Malta EU 2017Green Light Given for New EU Regulation to Bolster External Border Checks
  9. Counter BalanceCall for EU Commission to Withdraw Support of Trans-Adriatic Pipeline
  10. ACCAEconomic Confidence at Highest Since 2015
  11. European Federation of Allergy and Airways60%-90% of Your Life Is Spent Indoors. How Does Poor Indoor Air Quality Affect You?
  12. European Gaming and Betting AssociationCJEU Confirms Obligation for a Transparent Licensing Process

Latest News

  1. EU boasts unity on Brexit talks
  2. May’s election juggernaut
  3. EPP scolds Orban over university and NGO laws
  4. Oxford-Studie besorgt über 'Schrott' News in Frankreich
  5. Alte Freundschaft zwischen Le Pen und Putin
  6. EP chief faces questions after homophobic 'summit'
  7. EU signals Northern Ireland could join if united with Ireland
  8. One year later: EU right to open internet still virtual