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

Photo: Getty
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What Jeremy Corbyn gets right about the single market

Technically, you can be outside the EU but inside the single market. Philosophically, you're still in the EU. 

I’ve been trying to work out what bothers me about the response to Jeremy Corbyn’s interview on the Andrew Marr programme.

What bothers me about Corbyn’s interview is obvious: the use of the phrase “wholesale importation” to describe people coming from Eastern Europe to the United Kingdom makes them sound like boxes of sugar rather than people. Adding to that, by suggesting that this “importation” had “destroy[ed] conditions”, rather than laying the blame on Britain’s under-enforced and under-regulated labour market, his words were more appropriate to a politician who believes that immigrants are objects to be scapegoated, not people to be served. (Though perhaps that is appropriate for the leader of the Labour Party if recent history is any guide.)

But I’m bothered, too, by the reaction to another part of his interview, in which the Labour leader said that Britain must leave the single market as it leaves the European Union. The response to this, which is technically correct, has been to attack Corbyn as Liechtenstein, Switzerland, Norway and Iceland are members of the single market but not the European Union.

In my view, leaving the single market will make Britain poorer in the short and long term, will immediately render much of Labour’s 2017 manifesto moot and will, in the long run, be a far bigger victory for right-wing politics than any mere election. Corbyn’s view, that the benefits of freeing a British government from the rules of the single market will outweigh the costs, doesn’t seem very likely to me. So why do I feel so uneasy about the claim that you can be a member of the single market and not the European Union?

I think it’s because the difficult truth is that these countries are, de facto, in the European Union in any meaningful sense. By any estimation, the three pillars of Britain’s “Out” vote were, firstly, control over Britain’s borders, aka the end of the free movement of people, secondly, more money for the public realm aka £350m a week for the NHS, and thirdly control over Britain’s own laws. It’s hard to see how, if the United Kingdom continues to be subject to the free movement of people, continues to pay large sums towards the European Union, and continues to have its laws set elsewhere, we have “honoured the referendum result”.

None of which changes my view that leaving the single market would be a catastrophe for the United Kingdom. But retaining Britain’s single market membership starts with making the argument for single market membership, not hiding behind rhetorical tricks about whether or not single market membership was on the ballot last June, when it quite clearly was. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.