On June 23rd the electorate in Britain will go to the polls to decide the country’s future, or lack thereof, in the European Union. Already the main story is about which Conservative heavyweights will back their leader’s play and fight to stay in Europe, and which ones will join the campaign to get out. With all the infighting the actual hard facts and scary truths of the EU referendum stand a good chance of being missed.
Britain is no longer “Great” in the way that the leave campaign would like people to think. We don’t have an empire anymore and no matter how much the man in the street may want one we aren’t going to again. Europe provides us with the best possible outcome in an imperfect world to maintain at least someone dominance in international affairs, as well as relevance.
Trade with the EU counts for approximately 45% of Britain’s total exports and 53% of its imports come from the bloc, based on 2014 figures. The amount of finance generated by trading with other countries outside the EU pales into insignificance. Leaving the EU will not change the fact that we still need to trade with it, all it will mean is that we have to pay higher rates to do so and have no say in the tariffs and regulations in place which monitor it. British companies will still have to meet EU regulations, however, this time they won’t be able to have a say in what those regulations actually are, inevitably leading to a tiered system which will create immeasurable damage, particularly for small to medium sized enterprises.
There are those who claim that we can cover the trade deficit by increasing exports to non-EU states. While this may seem like a nice idea on paper the practicality is that it will fail. The majority of arrangements we have in place with countries outside of the European Union are based, at least tacitly, on the idea that Britain will act as a gateway to the rest of Europe. An easy option for trading with the whole so to speak. The exogenous impact of leaving Europe is incalculable, not because it doesn’t matter but because it matters so much. Britain would be economically crippled.
The same goes for the financial sector. London acts as a useful node for business not despite its ties to Europe but because of them. France is already punching to have a greater say in global economic affairs and it is not in the least unrealistic to see a shift in dominance from the City to Paris should the UK up and leave.
Then there is the question of security. Out campaigning Works and Pensions Secretary Ian Duncan Smith has claimed that to remain in Europe puts Britain at ever greater risk of a Paris style attack due to open borders. As Britain will always have at least one back door to Europe in Ireland this is a moot point all on its own. Add in the fact that the security arrangements created by our ties to Europe would be weakened and it quickly becomes clear that it is obfuscation at best, lying at worst. Mumbai is not a member of the EU bloc and that didn’t prevent attacks against the city.
The European union is far from perfect it is however here to stay no matter how much the “Out Campaign” may want it to be otherwise. For expats it provides a measure of security which they will not be afforded upon Brexit and for those living in the country it is essential for economic success and security. To think that leaving will mean that we are no longer tied is inconceivable. It just means that the ties which bind us will become the rope which hangs us.
Monday, 22 February 2016
The ties that bind could become the rope that hangs
Tuesday, 20 October 2015
Brexit would break Britain
THE main problem with the Eurosceptic campaigns is that Britain doesn't deal well with isolation.
Despite its resolute status as an island nation for most of its history the United Kingdom has been reliant on resources outside of its own borders. Culturally and economically it isn't geared towards going it alone.
There are unquestionably some areas of Britain's membership of the European Union which could potentially do with a bit of a dust down and shake up but for the most part we are better off for our part in it.
The strangely cereal sounding "Brexit" as the tabloids have coined it is not the way though. For all the benefits, of which there are few, which may materialise shortly thereafter the long term damage would feasibly cripple the UK economy. Meanwhile any argument which could highlight the benefits of leaving will automatically be eclipsed by the economic issues surrounding both the in and out campaigns.
The rallying cry of the right "£55million spent daily on EU membership" may make a good Daily Mail headline but it misses a fundamental point of business, you have to spend money to make money.
First off the figure of £55million which has been quoted by some of those pushing for Britain to jump out of the EU boat is a gross miscalculation of the data. This is primarily as it is taken from gross rather than net figures, which, based on 2012 statistics, placed the net daily contribution at £33million.
Even this figure is heavily skewed as it takes into account non-fiscal factors, or more simply it guesses at possible losses caused by such factors as the Common Agricultural Policy, lost jobs through free trade and labour movement with other EU states and additional costs from regulations.
On a household basis the cost of the EU paid by the government is actually knocked down to approximately £20million per day.
At this point this amount then needs to be offset against the negotiated rebates Britain already has, roughly £8million, so the figure of £55million is now down to £12million. Even these figures, however, based as they are on EU spending and investment returns can be debated further when compared to United Kingdom Treasury figures, which are based on central government calculations and only factor in “official” government transactions rather than the money saved and spent by British households.
This amount could still be seen as too much by those who want to see an isolated Britain though, after all why spend £12million when you could be spending none and keep that money in your own treasury? Here in lies the crux of the matter the “off the books” money. The EU currently counts for approximately 45% of UK exports, based on 2015 figures. Meanwhile Britain relies on the favourable terms for trade it has with countries in the bloc to facilitate 53% of its annual imports, all of which will cost more following an exit from trade agreements.
Then there is the external trade factors. America, China, India et al have already expressed concern over a British exit. For all its former glory Britain isn’t seen as a key trading partner for non-EU countries because of what it once was. It is seen instead as a gateway to the rest of Europe. Preferential trade agreements are based on the idea that it will smooth the way for larger deals on mainland Europe. Brexit removes this impetus and will rapidly drive foreign direct investment out of the UK and elsewhere.
The long and short of it that leaving the EU may be a boon for some historic ideal of an solitary powerful Britain but it doesn’t face the facts of the current global economy. For Britain to survive it must integrate. Brexit would do nothing more than break Britain.
Tuesday, 9 June 2015
Leaving Europe is a bad breakup we don't need
The future of Europe is one of those great discussions where it doesn't appear to actually matter if someone knows what is going on for them to make a contribution.
This is a good thing otherwise I would obviously be unable to wrIte about it.
In recent weeks the call from Conservative MP's to leave the EU, or at least calling for such unacceptable changes to the treaty agreement that they leave little other choice, has grown to more than 100. The Conservatives' For Britain group has appeared in a ghastly parliamentary parody of a bad boyfriend deliberately making unreasonable demand in the hopes that his girlfriend will break up with him and leave him looking like the injured party.
At the time of writing British MP's are debating the European Union Referendum Bill, the legislation required for the much heralded in out referendum to take place in 2017. As forgone conclusions go this was a safe bet. Everyone knows that it will pass. There is just too much pressure for a referendum to take place for it not to. It isn't whether we have a referendum now which matters, it is how we vote in that referendum.
The EU is far from perfect and in many ways could do with significant reform. This won't happen just because Britain stamps it's feet and cries though. It won't happen quickly and it most certainly won't happen in one go. The eurosceptics pushing for a renegotiation of the UK membership, supported by a number of disgruntled failed cabinet ministers looking to put the boot in, know this. If they don't then they have either deluded themselves or they really should not be allowed close to the debate. They know that the EU cannot change just because Britain says so. Likewise it won't even consider changing when there is a chance that the UK could leave anyway. International politics is a game and relies on states playing it in order to maximise their own preferences and gains.
The question which should be being debated in parliament is what is in it for everyone else. If we were serious about requesting reforms which would ensure that we stayed in the EU then we should be looking at how other states perceive their positions and what the relative gains will be. At the moment Britain had offered nothing in return for getting everything it wants.
An additional issue, and one which seems to be lost on many eurosceptics, is that leaving the EU will diminish Britain's absolute gains on the international stage. At present the United States sees the UK as a gateway into dealing with the rest of Europe. With its exit Britain's special relationship will sour quickly. This is of course something which will please the more nationalistic elements of the debate and what they are hoping for. The problem is that as the UK loses a great deal of support from America's declining hegemony it will lose its importance on the international stage.
This split will lead to a loss of trade which on its own could have been absorbed. Combined with the loss of trade and resources from Europe however it will prove crippling. Trade with China, based in no small measure with an understanding of Britain's ties to the US and its access to the EU economy, will not take long to dry up.
Britain is no longer an empire and it seems that too many people have forgotten this. We live and work in a globalised networked society. An EU exit has only one possible outcome for the UK, economic isolation and collapse. Better the long crawl to reform than the short sprint to crisis.
Thursday, 18 September 2014
Referendum sees Scotland stay
Wednesday, 10 September 2014
Passion not politics will decide Scotland's future
Monday, 25 August 2014
Scots debate needs to be about more than sterling
Thursday, 3 July 2014
Not so united on EU
Monday, 12 May 2014
More haste less speed for Ukrainian referendum
With reports this morning of Ukrainian military forces preparing to resume operations in the city of Slavyansk this may not be so far fetched. Governments across Europe have joined with America to condemn the referrendum as illegal and pledged to support authorities in Kiev. Even the pro-seperatists greatest ally, the government of Russian President Vladimir Putin, called for the vote to be postponed to allow the situation to de-escalate.
While the West has continued to threaten further sanctions against Russia it is possible that it may have been the only one suggesting a sensible solution.
The issue is not that regions of Eastern Ukraine may split away from the country, nor even that they may wish to join Russia. The crucial factor is the speed at which they are doing it.
In the United Kingdom the thorny issue of Scottish independence is set to be resolved on September 18th. Groups on both sides of the debate have had months to put forward their opinions.Even the most ardent Scottish nationalists accept that there are complex issues involved in creating a seperate country. The economic implications alone are enough to baffle some of the most educated in the debate and need careful analysis.
In Donetsk, and other Eastern regions, there has not been time for the electorate to fully understand what a call for independence may mean. There has not even been enough time to ensure that the system for voting was set up to be impartial and effective.
Yesterday's referendum highlighted how disorganised the pro-seperatist movement is. Queues outside hastily contructed polling stations feared that they would not have an opportunity to submit their ballot. Security was compromised as results were intercepted and released before voting had been completed. This is completely aside from the obvious implications of bias, which have been so roundly condemned by the West.
What was needed was time. If, as in Scotland, a true referendum had been arranged for a suitable time in the future the West would have little defence to condemn the decison. Even the counting was conducted at speed, with results released showing 89.07 per cent of the turnout voting in favour of leaving Ukraine.
The pro-seperatists aknowledge that the vote will not be recognised by the international community so its purpose is still in question. With a little more time they may have been able to make a case, and in so doing garnered much needed support outside their own borders and diminished the threat of armed conflict.
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