Friday 13 April 2018

BREXIT - AN EXPERIMENT?

When the original six countries began talks on forming an economic community in the mid 1950s Britain was sceptical. We sent a delegation to observe the negotiations which led to the Treaty of Rome and the EEC. Our observers declared that they would never reach agreement, and even if they did, it would never work. A few years later when it appeared that it might work we organised EFTA as a spoiler but by 1961 it was obvious the EEC was the better of the two and we opened negotiations to join. As we know De Gaul twice vetoed our attempts.

Eventually, after De Gaul was gone Edward Heath negotiated the UK's accession, along with Ireland and Denmark.

In 1974-5 Wilson renegotiated the terms of entry - as set out in the 1975 referendum pamphlet: 

The new terms ensure that Britain will pay a fairer share. We now stand, under the Dublin agreement to get back from market fund up to £125 million a year. There was a threat to employment in Britain from the movement towards an Economic and Monetary Union. This could have forced us to accept fixed exchange rates for the pound, restricting industrial growth and so putting jobs at risk. This threat has been removed. Britain will not have to pay VAT on necessities like food.  We have also maintained our freedom to pursue our own policies on taxation and on industry, and to develop Scotland and Wales and the Regions where unemployment is high.

Mrs Thatcher negotiated a further rebate in our EU payments and opted out of the Schengen agreement which opened borders across Europe. She resisted the Charter of Fundamental Rights that Blair finally accepted in 2000, albeit with a special protocol preventing the ECJ finding our laws are inconsistent with it. Gordon Brown kept us out of the Euro zone.

Cameron negotiated further changes (never actually ratified) opting out of ever closer union, tinkering with immigration and welfare benefits and encouraging less regulation and more emphasis on competitiveness.

The other EU countries have watched all this and no doubt see Brexit as a continuation of the same thing. We sign a treaty and before the ink is dry we want to renegotiate. We're never quite happy. We want the benefits without the obligations. To have our cake and eat it.

The result of all these changes is that, in payments to the EU, per head of population the UK in 2014 was 13th out of 28 members. In other words twelve countries paid more per head than we did (HERE). But because we are one of the wealthiest countries the amount we get back was actually the lowest out of all EU members. One of the objectives of the EU is to reduce inequality between members so this is to be expected. Also, in my opinion the UK has huge inequality within its own borders so many in the north east may not feel like they are wealthy at all, but this is not the EU's fault. Look to Westminster.

If we do finally get a bespoke deep and special relationship, one that does indeed give even more benefits with fewer obligations, that allows us to thrive outside it would effectively be the end of the EU. Imagine what Holland (who pay the most per capita for the EU) or some on the right in Germany or France would say if they notice the UK becoming wealthier and more successful. They would demand the same, a looser free trade area, perhaps with harmonised standards but no ECJ and much more independence. It would mean the end of the single market and the customs union and a worsening of the future prosperity of all Europeans.

Let's be honest, Brexit is an experiment. None of us know what the future holds but there seems to me every reason to fear things will not turn out well. We are experimenting with the lives of 65 million people. If it all goes wrong the Conservative Brexiteers will never be forgiven.