Why Britain leaving the EU for the EEA or EFTA will not solve any of the anti-EU crowd’s complaints

“Let’s leave the EU and join the EEA or EFTA – Norway and Switzerland are doing fine without EU membership!” It’s a perennial argument of a surprisingly large number of anti-EU types, and I’ve been meaning to do a proper post on it for (literally) years. It is, needless to say, a nonsense argument based on a fundamental misunderstanding of Norwegian/Swiss relations with the EU.

Norway has oil. Switzerland’s a tax haven. Both have far, far smaller populations than the UK, accounting for their far higher GDPs per capita (and hence relative prosperity). They are not comparable with Britain.

Even if they were – both also have to pay in to the EU budget proportionate to their economies. Norway currently pays c.340 million euros per annum. This is more than many EU member states – especially when you consider the fact that actual members get money back, reducing their net contributions.

In fact, judging from this chart of net contributions, Norway would – if included in the chart – be about the 10th highest contributor to the EU budget, despite not being a member.

Rough maths tells us that, all things being equal, as the UK’s GDP is approximately 5.7 times that of Norway’s, the UK would still need to contribute around 2 billion euros a year to the EU budget if part of the EEA/EFTA. While having no say in what EU laws and regulations we’d still have to follow.

Because both Norway and Switzerland also – without having any say in their formulation – have to abide by 80-90% of EU rules and regulations in order to be part of the Common Market.

Because you know what you need for a Common Market to function? Common rules and regulations.

That’s the whole reason *why* the EEC has been shifting down the path towards elements of political union over the last five decades – you need a certain amount of political harmonisation to enable functional, stable economic harmonisation. The lack of greater political cohesion (especially the lack of a common fiscal policy) is one of the major contributing factors to the current eurozone crisis, FFS.

Also worth remembering – these “we’d be better off in EFTA/the EEA” arguments used to have a third “look how well so-and-so’s doing” country included: Iceland.

We don’t hear much about how well Iceland’s doing in the EEA any more, do we?

You see – it’s all very well saying “let’s leave the EU”. But if you’re advocating ditching the status quo you’d better have a pretty bloody well thought-through alternative plan.

The vast, vast majority of EU withdrawalists, however, seem simply not to have done their research.

(This originally posted as a comment here, and now slightly modified with additional links)

The People’s Pledge campaign: More lies, irrelevancies and distortions from the British EU referendum campaign

Alerted by a rather simplistic, often factually inaccurate article over on Liberal Conspiracy, I’ve ended up checking out the new British campaign for a referendum on continued British membership of the EU, The People’s Pledge. More to the point, I’ve had a quick look at its five key arguments:

The choice concerning our relationship with the EU is now clear: either we accept being primarily and increasingly governed from Brussels or we decide to abandon membership and negotiate a new relationship with the EU based on trade and, where this makes sense, voluntary co-operation.

*sigh*

Herewith, a very quick and dirty demolition of their “5 key reasons why we must have a referendum on Britain and the EU”, originally written as a comment under that Liberal Conspiracy piece:

Update: The People’s Pledge campaign has responded to this post. Needless to say, they aren’t overly impressed with my responses to their claims – and I’m not overly impressed with their attempts to counter my arguments. I’ve started responding to their (long) response in the comments – and will add in links to the relevant comments below, as and when I finish replying to each point.

1) No one under 54 has had the chance to vote on our relationship with Brussels.

- And no one – full-stop – has had the chance to vote on the role of the House of Commons, House of Lords, Cabinet, Prime Minister, Civil Service, etc. etc. etc. On pretty much any aspect of the British constitution, in fact, since the Acts of Union 300+ years ago.

Update:Response to People’s Pledge objections to this point.

2) The European Union now makes a majority of the laws we must obey

- This is simply bollocks. See, for example, the recent House of Commons Library paper (PDF) on the issue, or my old What percentage of laws come from the EU post. The true figure is more like 10-20% of laws, with regulations coming in at around 20-30%. Both figures are declining year on year.

Update: Response to the People’s Pledge objections to this point, plus part 2 (on EU regulations) and part 3 (on UK Statutory Instruments).

3) The UK has less than 10% of the votes in the Council of Ministers and the European Parliament

- Our representation is (approximately) in line with our population size – with population taken into account on many votes in the Council, giving the UK a very strong position. Would anything other than that be fair on the other member states with whom we are cooperating? And how much relative say do we have in the WTO, NATO or the UN?

Update: Response to the People’s Pledge objections to this point and part 2

4) The EU is costing Britain more and more money

- This is justified by the classic £48m a day claim (it used to be £40m, but the exchange rate’s got worse), which is abject nonsense, based on gross rather than net, and rounded up, as shown in this old post – and is backed up by some nonsense about the cost of the Greek bailout (ignoring the British investment money that would be lost if Greece/Ireland/Portugal had been allowed to go bankrupt), and in any case ignores the wider impact of EU membership on the economy as a whole. Simplistic tosh.

5) The EU wants to give itself new powers of “economic governance”

- Erm… For the Eurozone. Of which Britain is not a member. Britain would only benefit by her neighbours (and major trading partners) being economically more stable and prosperous.

Utter rubbish, all five of them.

UK-EU trade, services and regulatory costs

Just found an interesting response to my UK-EU trade post from a couple of months back, from what is a new blog to me, Brittopic.

It’s worth reading in full to see a few objections and some issues raised – notably about the British balance of trade and the nature of the UK’s service-driven economy.

Below the fold is what started out as a comment reply on that site, but which got too lengthy to post there. It ends with my (little bit) tongue-in-cheek advocation of Britain joining the Eurozone – something I don’t believe I’ve ever done before – simply because the Eurozone is a bit like the Gold Standard.

(And yes, before you ask I *have* read a newspaper in the last year. I’m off to Greece on Sunday, in fact, and spend a good 30% of my day job focused on Ireland…)

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UK trade, the EU, and the Rotterdam Effect

XKCD: Duty CallsAs many of you know, I spend far too much of my (increasingly limited) spare time arguing with eurosceptics on the internet. Some are professional eurosceptics (recent discussions have included ones with Declan Ganley, founder of anti-Lisbon Treaty party Libertas, Nigel Farage of UKIP, and someone from American neocon thinktank the Heritage Foundation), others merely passing concerned citizens.

Most of the time, I can point them to a post on this blog where I’ve already covered their concerns in detail. Sometimes I haven’t covered it yet. In a recent discussion with @ArnieEtc, I asked for suggestions of pro-EU myths. He responded with a classic eurosceptic complaint about a perennial pro-EU claim – one that I frequently make myself, but one which I’ve never explored or justified in any detail:

@ArnieEtc, 3rd Nov 2010: “The favourite [pro-EU myth] of mine is where europhiles insist that 70% of our trade is with the EU, so it’d be suicide to leave. This is a myth for two reasons – firstly, you can have free trade with the EU without being a member (EEA). But more fundamentally, it’s a deliberate manipulation of statistics – a lot of our world wide trade goes via Holland, as you get very good shipping links there. But because that involves goods being moved from the UK, to Holland (even though they only stay there for a few days), some pro-EU commentators use that to bulk up EU trade figures, and make it look like there’s more genuine intra-EU trade than there really is.”

I’ll come back to the EEA in another post, as it’s a far more complicated situation to explain – first, let’s take this claim that official statistics over-inflate the UK’s trade with other EU member states.

Is there any truth in it? Well, as with all the best euromyths, yes. Some.

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Britain’s new foreign policy approach

As regular readers of this blog will know, my single biggest worry about the Conservative party taking office in the UK was the prospect of arch-eurosceptic William Hague taking over the Foreign Office (the man who, as leader of the party back in 2001, ran a last-ditch general election campaign on the slogan “7 days to save the pound”).

Hague has repeatedly rattled his sabre in the direction of the EU, making numerous references to “repatriating” powers from “Brussels”, and often seeming to believe numerous Europhobic myths about the way the EU operates.

After 13 years of a supposedly pro-EU government which repeatedly refused to constructively engage with our continental partners, my fear has been that the incoming Conservative government (even with the tempering effect of their more pro-EU Liberal Democrat partners, led by former Commission official and ex-MEP Nick Clegg) would pull the UK even further from Europe’s heart. This, I am certain, would be disastrous – both for Britain and for the EU itself, but mostly for Britain.

Today, Hague is giving his first major speech since becoming Foreign Secretary. So let’s have a quick look at some of the highlights – especially in relation to Britain’s future policy towards the EU. It must be said, there were a few pleasant surprises…

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The Cameron government and the EU

OK, I was wrong – Prime Minister Cameron it is.

I just hope I’m also wrong in my dread of our new Foreign Secretary, William Hague – the most strongly eurosceptic person ever to hold that position, the mastermind behind the Conservatives’ withdrawal from the EPP in the European Parliament, and a man who, back in 2001, led an explicitly anti-EU general election campaign that revolved around the populist nonsense-slogan “Ten Days to Save the Pound”.

Recent devolopments have not been much more promising, an alleged draft letter from Hague leaked to last weekend’s Observer, promising “to demonstrate to the British people and beyond that the UK’s relationship with Europe has really changed… the British relationship with the EU has changed with our election… we will fight our corner to protect our national interests”.

Of course, there’s a good chance that Hague’s euroscepticism may be countered by former MEP and Commission employee Nick Clegg also attending Cabinet in the apparently-offered role of Deputy Prime Minister, but as of 11pm on Tuesday it remains unclear just what role the Liberal Democrats are going to take in this apparent new coalition.

I hope I’m proved wrong. In Hague’s favour, he’s certainly not stupid. And it’s always far easier to take tough, controversial stands in opposition than it is in government. He may yet temper his rhetoric and the Cameron government may yet start to take a more sensible, pragmatic approach towards the EU. I very much hope so – because I, for one, am convinced that the only loser in a “fight” between Britain and the EU (Hague’s phrase) would be the UK.

Amusing UK election aside: The EU question and UKIP

In the unusual Buckingham constituency*, UKIP’s Nigel Farage – advocating withdrawal from the EU – ended up in third place, despite a high-profile (non-fatal) election-day plane crash**.

The amusing news for pro-EU types? Farage was beaten into second place by an independent former Conservative MEP, John Stevens.

Why is this so funny? Stevens was the co-founder of the Pro-Euro Conservative Party.

Ha ha ha! Yes, an arch-eurosceptic beaten in a direct popularity contest by an arch europhile. In Britain.

So much for us all being anti-EU, eh?

My fuller post-election analysis can be found here.

* UK convention states that the major parties don’t run against a sitting Speaker of the House of Commons, leaving the way clear for various fringe parties to get high up the results list. Buckingham is the current Speaker’s constituency, hence the high placements for the likes of UKIP and independents.

** Get well soon, Nigel – but what were you doing going up in a plane with a UKIP banner anyway? Campaigning is expressly forbidden on election day…

UK election: Where next?

Just back from Japan, from where I was closely following the UK election on Twitter (your best place for my day-to-day political commentary these days, though be warned they’re usually more jokey – and sweary – than here…)

After 30 hours offline, and 44 hours after the polling booths closed, the UK still doesn’t have a new government. As such, witness the wonders of my jetlag-inspired political guesswork!

I’d be surprised if this lack of a government lasted beyond Monday morning, largely because the next government will want to look responsible – and we had some serious global financial trouble on Friday for a variety of reasons (NY stock exchange hiccough, Greek crisis, UK election uncertainty, etc.). They’ll want to have a government before the markets open, if they can…)

Here’s what I currently reckon will happen, rejigged from a few comments on Twitter:

Lib Dem leader Nick Clegg’s playing this absolutely perfectly so far – he has solid offers to join coalitions from both Labour and the Conservatives, and significant policy differences with both, and has explicitly stated that the Tories – with more seats and more of the vote – should have the right to “seek to form” a government first.

But the Tories can’t get a parliamentary majority without Lib Dem support. At least, not a stable one. Not the sort of majority that they’d need to do, well, just about anything.

But Labour and the Lib Dems combined can’t get a parliamentary majority without other parties’ support either.

Clegg has also repeatedly mentioned “the national interest” and equated this with electoral reform (unsurprising, considering Labour got only 5% more of the vote than the Lib Dems, but 5 times the parliamentary seats).

The Tories are fundamentally opposed to the sort of Proportional Representation-style electoral reform that the Lib Dems want (usually single transferable vote) – which is hardly surprising, as it would almost certainly lead to a permanent Labour/Lib Dem coalition (there being very few other parties on the centre right that are likely to end up big enough to give the Tories the backing they’d need under such a system).

So, Clegg is giving the impression that he’s willing to work with the Tories – and probably is – but his one major condition is a deal-breaker for Cameron and co.

So I’m now fairly convinced that Prime Minister Cameron’s not going to happen. If Cameron rejects PR, as he must to keep his party behind him (there have already been dire warnings from the right wing of the Conservative Party about such a move, in the shape of Thatcher-era relic Lord Tebbit), then a Lib Dem/Labour/Scottish National Party / Plaid Cymru coalition has first dibs (SNP leader Alex Salmond has already openly proposed this).

Constituionally-speaking, Gordon Brown retains first right to try to form a government, as the sitting Prime Minister in a hung parliament. With Lib Dem, SNP and Plaid Cymru support, the coalition would have an outright majority – able to outvote the Tories and their allies on anything. As such, despite his unpopularity (and calls from within his own party to step down), Brown could yet remain as caretaker PM of a coalition expressly set up to bring in electoral reform.

This would actually be a very sensible option, for several reasons:

1) It would be constitutionally unprecedented for Cameron to form a minority government in the current circumstances – he is impotent until he has enough supporters to claim an outright majority. This looks to be impossible.

2) The constitution explicitly states that Gordon Brown remains Prime Minister, so using him as a figurehead for any new coalition is – constitutionally – the least harmful in the short term.

3) Anyone unhappy with Brown remaining as PM simply adds to the case for major constitutional reform with their objections.

4) This would also give both Labour *and* the Conservatives time to sort themselves out, as they are blatantly in a shambles at the moment.

So, what I’d suggest is a short-term multi-party national coalition *explicitly* for electoral *and* parliamentary/constitutional reform, as well as to maintain some form of stability in the midst of an ongoing financial crisis, keeping Gordon Brown as a figurehead Prime Minister for constitutional reasons alone, with an explicit promise that he will step down once the basic reforms are in place to have a fresh election under a new electoral system.

One final note: There’s nothing to say – constitutionally – that the Prime Minister has to be a party leader. Nor even that he has to be an MP… The question is, is there *anyone* who could be seen as a sufficiently impartial lynchpin to take on the task of leading a coalition of (at least) four parties?

The EU’s role in UK immigration

Just a quick note for future reference, as most people who blame the EU for “uncontrollable” immigration (*ahem* UKIP *ahem*) tend not to know what they’re talking about – but also tend not to believe anything you say unless it’s from an “unbiased” (read, “eurosceptic”) source.

As such, from today’s Daily Mail – one of the most fervently anti-EU newspapers in the UK:

“Officers told the migrants that, under EU rules, if they haven’t worked for the last three months they can removed from their host country…

“People from EU countries have a right to travel freely in the EU and can live in the UK for up to three months if they can support themselves.

“After that time, they can only stay in the country if they are working, they are registered students or they are self-supporting.”

See also the (eurosceptic) Daily Telegraph:

“Migrants who have not found work and are sleeping rough will be deported because they are not protected by the EU rules on right to free movement…

“Under EU rules, citizens have the right to stay in another member state for up to three months but after that time they must be able to support themselves either through working, studying or be self-sufficient.

“If not, they can be deported to avoid them becoming a burden on the state and taxpayer.”

And more from the decidedly anti-EU Daily Express:

“Migrants from EU countries can travel freely in the EU and live in the UK for up to three months with no questions asked if they have the funds.

“After that they are only ­entitled to stay here if they are working, are registered students or are self-supporting.”

And finally the (violently anti-EU) Daily Star:

“People from European Union countries can travel in the EU and live in the UK for up to three months.

“After that, they can only stay here if they are working, registered students or self-supporting.”

(And yes, it’s safe to say that I never thought I’d use the Mail, Express and Star to prove a point about the EU…)

Britain, the Conservative Party, David Cameron and the EU

If you want to understand Britain’s rather odd relationship with the EU, you could do far worse than read this really rather good overview in this week’s Economist, especially considering its focus on the Conservative party – likely to form the next British government in a little over six weeks’ time.

There are only a couple of flaws (e.g. mentioning a figure of 50% for the number of European laws stemming from the EU, when readers of this blog will be aware that it’s more in the region of 10-30%, depending), and much insightful analysis that tallies 99% with my own views. It also provides one of the best short summaries of the last 40+ years of UK-EU relations I’ve seen.

Below the fold, a few highlights.

Update: It should also be read in conjunction with Charlemagne on eurosceptic think tank Open Europe and the nature of the British press to give the full picture on why the UK is so insistent on remaining utterly ignorant on all matters EU-related.

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“No one under the age of 52 has had the chance to vote on the EU”

So runs the argument of increasingly prominent anti-EU Tory, Daniel Hannan MEP – still advocating a UK referendum despite the final ratification of the Lisbon Treaty.

This is, of course, very true. Since the 1975 referendum on EEC membership, the British people haven’t had their chance to vote on being part of the EU system.

But when was the vote on constitutional monarchy, an established Church, Cabinet government, a two-chamber parliament, parliamentary sovereignty, a supreme court, the first past the post voting system, our membership of NATO, the UN, the WTO, etc. etc. etc.?

Why the insistence on a public say in one (really rather small) part of the UK’s governance, but not all the rest?

Why the complaints about the unelected European Commission, but no murmurs of dissent about how no one in the Cabinet is elected to that post? (Not to mention the UK civil service…)

Why the complaints about lack of democracy in the EU when the House of Lords remains unelected?

Why the complaints about EU law when most domestic legislation is passed via statutory instruments without so much as a glance from an elected official?

Why the hysteria over the largely powerless Presidency of the European Council, when Her Majesty the Queen retains the right to dissolve parliament and veto any legislation, whenever she likes?

How about, in other words, we put our own house in order before preaching about governmental perfection – and how about we stop with the double-standards? Want the people to have a say in how they’re governed? Fine. Let’s give them a say in all the other areas as well.

But don’t abuse referenda – generally reserved purely for extraordinary constitutional changes – for party political purposes. That way lies the destruction of the very system of government that the EU’s British opponents profess to hold so dear.

Guest Post: Chris Patten for ‘EU Foreign Minister’?

A guest post from that rare beast, an openly pro-EU Tory – in this case Thomas Byrne of the blog Byrne Tofferings, who is keen to sound out the thoughts of a more international audience to his suggestion for the first High Representative of the Union for Foreign Affairs and Security Policy, the successor to the High Representative for the Common Foreign and Security Policy (currently Javier Solana):

Chris Patten has signalled his interest in the High Representative for the Common Foreign and Security Policy position, something I’m going to give my support to.

If you want to look at important conflicts that Britain has been involved with since the EU’s foundation – Falklands, Kosovo, Gulf War, Iraq, Afghanistan, etc. the EU has actively or passively opposed every one, Chris Patten would be the perfect man for turning EU Foreign Policy into a force to be reckoned with.

Chris Patten was the first Governor who actually cared about trying to bring democracy to Hong Kong. Unlike most of his predecessor(s) who were ‘sinologists,’ which meant they just kowtowed to Peking, he actually stood up for Hong Kong.

Patten’s experience would be useful in the Balkans – Bosnia, Serbia, Croatia, Macedonia, Albania, Kosovo, Moldova – and Turkey, all of which are pushing for EU membership to a greater or lesser extent. Not to mention some of the Caucasian and Central Asian countries that are members of the Council of Europe, and could down the line become candidate countries – or the elephant in the European room that is Belarus, the last dictatorship on the continent.

In Chris Patten’s book (Not Quite The Diplomat) he suggests the Tories have saddled themselves with a Eurosceptic ideology for no good reason, something that I’d agree with, his Europhile sentiment and his experience within the commission make him the perfect man to slide into this role. Firstly ,because of his experience of EU institutions and dealings with each of the member states, but also when the Tories come into government they’ll be dealing with someone they can relate to, lending a plaster to the Eurosceptic position of some MEP’s like Daniel Hannan, and the grassroots and lead the Conservative party into a position within Europe that would silence those that claim the party are on the fringe.

On “the President of Europe”

The proposed President of the European Council is very far from being “President of Europe” – either in terms of profile or power.

Whoever lands the job (and it’s highly unlikely to be Tony Blair) will have practically zero influence on anything, acting instead as little more than a moderator between the governments of the member states as they continue to run the EU show. And will be in office for just two and a half years – which is no time at all in EU terms (hell, it’s just taken more than a decade to get agreement on a treaty which doesn’t solve half the problems it was meant to…)

Meanwhile the rotating EU Presidency – the Presidency of the Council of the European Union – will continue as usual (currently Sweden, with Spain taking over on January 1st), ensuring that the President of the European Council can constantly be outshone by whoever holds the more established rotating presidency. Because the rotating presidency still has the ability to influence the EU’s focus for the six months that each member state holds it – whereas the President of the European Council will have *no* formal powers whatsoever, and remains hugely ill-defined.

And that’s before you note that the President of the European Council’s role, as vaguely as it has been described, also overlaps with that of the far better-established Presidency of the European Commission (currently Jose Manuel Barroso) and the EU High Representative (currently Javier Solana). A brand new two and a half year office versus two existing five-year offices? I know which ones I’m betting on to have the real power here.

In other words, it really doesn’t matter who gets the gig. It’s not important in the slightest. It’s a meaningless position.

I do get that it’s confusing to have a (proposed) President of the European Council AND a President of the Council of the European Union (not to mention the Council of Europe), but come on – the significance of this is being blown out of all proportion.

(Originally posted as a comment to this article over at the Guardian)

EU regionalism on the decline?

Following my recent posts on national vs European identity and regionalism and the EU (as part of a vague attempt to get an idea of the nature and importance of geographical/cultural identity), this may be of interest – Why the end is nigh for regionalism in Europe, from The Lobby. Quick excerpt:

Up until recently this was very much not the case. The Scottish National Party had just won power in their (regional) Parliament in Scotland, the Basque terrorists ETA continue to plant bombs in Spanish coastal resorts, and Belgium was in danger of being torn asunder by its perennial north-south divide. In the Balkans the newly independent states of Kosovo and Montenegro demonstrate that similar regional aspirations have led successfully to self-determination (although Kosovo is still very much a work in progress).

“This apparently contradictory trend of both centralisation towards Brussels and devolution towards the regions looked to be the way forward – until along comes the biggest financial meltdown since the 1930s. Now it’s all about strength in numbers.”

Worth a look – though it’s worth noting that now that France and Germany are out of recession (with the Eurozone’s economy declining by just 0.1% in the last quarter), it looks like all the doomsday scenarios predicted by the economic experts (the self-same experts who failed to predict the economic collapse) may not be quite so catastrophically inevitable after all. If the economy starts to revive again, I’d expect a swift return to business as usual – because there’s nothing the EU does better than the same thing it’s always done…

I’m sure there’s more to be said here about how the first port of call for Catalonia is the national machinery of Spain (the example used in the post linked above) rather than the supranational machinery of the EU.

But I’m not sure how much that would necessarily say about the strength of regional identity in Catalonia – it’s more a comment on the relatively tiny amounts of cash the EU has at its disposal. (The EU’s budget? 139bn euros; Spain’s budget? 374bn euros.)

This tiny EU budget, of course, is something set by the member states. Because it’s not in their interests to give the EU too much cash to spread around – not only might they not be able to control where it goes, but it could also (as if the EU, rather than Spain, came to Catalonia’s aid) help bolster regional nationalist movements and undermine the power of the governments of the member states.

At the risk of annoying a second nationalist movement in a week, this is why – in the present circumstances – I can’t see Scottish independence as being a viable option: the EU simply can’t afford to fill the void that would be left by the withdrawal of UK/English funds.