What would it mean for Britain to leave the EU?

Talking about an EU referendum now is the wrong thing, at the wrong time and for the wrong reasons.

It is truly remarkable to hear the discussion around an EU referendum at this particular moment in time. As the global economy is dealing with problems of Herculean proportions, as the British economy is at the verge of a depression, a small number of nationalist, right-wing politicians and the tabloid press are obsessed with trying to remove the UK from the biggest single market in the world.

Never before has Britain’s membership of the EU been as important. As we fight for market share in an increasingly globalised and competitive world, being part of the biggest trading block offers us clear negotiation advantages. According to the FCO the UK is benefiting already from EU Free Trade Agreements. The recently signed South Korea Free Trade Agreement alone is expected to save European exporters £1.35 billion annually in tariff reductions. It is expected to benefit the UK economy by about £500 million per annum. The EU is also negotiating Free Trade Agreements with India, Canada and Singapore. Completing all the bilateral trade deals now on the table could add £75 billion to Europe’s GDP.

In a time when exports are imperative for the well-being of our economy, being part of the EU’s single market gives our exporters access to 500 million customers across Europe, creating jobs and growth at home. At the same time we are afforded a seat around the table where the common rules of that market are decided.

As a member of the EU the UK gains also in foreign policy terms, has more influence in international forums, like climate change talks or world trade rules, and is a more attractive partner for our American friends.

So it beggars belief that the prime minister and others toy with something as important as the country’s membership of the EU. It is clearly a game of political football, where all parties try to score goals against each other, using the EU question as a ball. But this is highly irresponsible and it does not serve the national interest. It only placates a minority of nationalist MPs and a handful of newspapers which, as the Leveson Inquiry has so clearly demonstrated, have their own agenda when it comes to the EU.

It also contributes to a sense of uncertainty; markets, global investors, our international partners (not least the US) are looking closely and perceive this tendency towards isolationism with concern. Leading figures in the City voiced fears last week that talk about leaving the EU can only damage one of the most important British industries.

The irony is that the prime minister does not want to leave the EU. Nor the majority of Tory MPs, who might dislike the EU but understand the economic benefits that come with it. Even Fresh Start, the eurosceptic group of MPs, accepts that all other available alternatives, including the Norwegian, Swiss and EFTA model, pale by comparison to full EU membership and do not suit Britain. But what they suggest instead, a nebulous and poorly defined re-negation of British membership, is impossible to materialise. In many ways what they are asking for means the unravelling of the single market.
What is to stop other member states from calling for exceptions from core elements of EU legislation? There are member states that wish to protect their national champions from EU competition rules, others that would like to raise barriers to imports. These are all things that will harm the single market (and British interests). So such re-negotiation is not possible and will push the UK towards the exit, something they have admitted they do not wish to happen.

So here we are, engaged in a pointless debate about something that can only harm the national interest. What politicians from across the political spectrum should be doing, what they should have been doing for a while in fact, is engage the electorate about what EU membership actually means.
Instead of allowing the debate to take place on the front pages of tabloid papers or be high-jacked by shadowy vested interests, they should be leading the discussion, not least during local, national and European elections. Openly, fairly and in a manner that aims to inform, instead of grand-standing and trying to score cheap political points, for internal political consumption, before or after EU summits.

The British people rightly want to be involved in what British membership implies. They are not eurosceptic, they do not want to leave the EU. Their appetite for a referendum is born out of a frustration that for far too long their elected representatives have not discussed with them the rights and responsibilities, the many benefits and inevitable costs that emanate from being a member of the EU. The sooner we make that conversation part of the normal political discourse the quicker the debate around EU membership will become a normal political debate and will start focusing on how to make the EU work even better and deliver even more for citizens in all member states. Until that happens we will remain stuck in this perpetual and populist discussion about whether to hold a referendum or not.

Petros Fassoulas is the Chairman of the European Movement UK

 

A press room is seen through an EU flag during a European Summit. Photograph: Getty Images

Petros Fassoulas is the chairman of European Movement UK

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Is defeat in Stoke the beginning of the end for Paul Nuttall?

The Ukip leader was his party's unity candidate. But after his defeat in Stoke, the old divisions are beginning to show again

In a speech to Ukip’s spring conference in Bolton on February 17, the party’s once and probably future leader Nigel Farage laid down the gauntlet for his successor, Paul Nuttall. Stoke’s by-election was “fundamental” to the future of the party – and Nuttall had to win.
 
One week on, Nuttall has failed that test miserably and thrown the fundamental questions hanging over Ukip’s future into harsh relief. 

For all his bullish talk of supplanting Labour in its industrial heartlands, the Ukip leader only managed to increase the party’s vote share by 2.2 percentage points on 2015. This paltry increase came despite Stoke’s 70 per cent Brexit majority, and a media narrative that was, until the revelations around Nuttall and Hillsborough, talking the party’s chances up.
 
So what now for Nuttall? There is, for the time being, little chance of him resigning – and, in truth, few inside Ukip expected him to win. Nuttall was relying on two well-rehearsed lines as get-out-of-jail free cards very early on in the campaign. 

The first was that the seat was a lowly 72 on Ukip’s target list. The second was that he had been leader of party whose image had been tarnished by infighting both figurative and literal for all of 12 weeks – the real work of his project had yet to begin. 

The chances of that project ever succeeding were modest at the very best. After yesterday’s defeat, it looks even more unlikely. Nuttall had originally stated his intention to run in the likely by-election in Leigh, Greater Manchester, when Andy Burnham wins the Greater Manchester metro mayoralty as is expected in May (Wigan, the borough of which Leigh is part, voted 64 per cent for Brexit).

If he goes ahead and stands – which he may well do – he will have to overturn a Labour majority of over 14,000. That, even before the unedifying row over the veracity of his Hillsborough recollections, was always going to be a big challenge. If he goes for it and loses, his leadership – predicated as it is on his supposed ability to win votes in the north - will be dead in the water. 

Nuttall is not entirely to blame, but he is a big part of Ukip’s problem. I visited Stoke the day before The Guardian published its initial report on Nuttall’s Hillsborough claims, and even then Nuttall’s campaign manager admitted that he was unlikely to convince the “hard core” of Conservative voters to back him. 

There are manifold reasons for this, but chief among them is that Nuttall, despite his newfound love of tweed, is no Nigel Farage. Not only does he lack his name recognition and box office appeal, but the sad truth is that the Tory voters Ukip need to attract are much less likely to vote for a party led by a Scouser whose platform consists of reassuring working-class voters their NHS and benefits are safe.
 
It is Farage and his allies – most notably the party’s main donor Arron Banks – who hold the most power over Nuttall’s future. Banks, who Nuttall publicly disowned as a non-member after he said he was “sick to death” of people “milking” the Hillsborough disaster, said on the eve of the Stoke poll that Ukip had to “remain radical” if it wanted to keep receiving his money. Farage himself has said the party’s campaign ought to have been “clearer” on immigration. 

Senior party figures are already briefing against Nuttall and his team in the Telegraph, whose proprietors are chummy with the beer-swilling Farage-Banks axis. They deride him for his efforts to turn Ukip into “NiceKip” or “Nukip” in order to appeal to more women voters, and for the heavy-handedness of his pitch to Labour voters (“There were times when I wondered whether I’ve got a purple rosette or a red one on”, one told the paper). 

It is Nuttall’s policy advisers - the anti-Farage awkward squad of Suzanne Evans, MEP Patrick O’Flynn (who famously branded Farage "snarling, thin-skinned and aggressive") and former leadership candidate Lisa Duffy – come in for the harshest criticism. Herein lies the leader's almost impossible task. Despite having pitched to members as a unity candidate, the two sides’ visions for Ukip are irreconcilable – one urges him to emulate Trump (who Nuttall says he would not have voted for), and the other urges a more moderate tack. 

Endorsing his leader on Question Time last night, Ukip’s sole MP Douglas Carswell blamed the legacy of the party’s Tea Party-inspired 2015 general election campaign, which saw Farage complain about foreigners with HIV using the NHS in ITV’s leaders debate, for the party’s poor performance in Stoke. Others, such as MEP Bill Etheridge, say precisely the opposite – that Nuttall must be more like Farage. 

Neither side has yet called for Nuttall’s head. He insists he is “not going anywhere”. With his febrile party no stranger to abortive coup and counter-coup, he is unlikely to be the one who has the final say.