UK better off in EU for now, says euroskeptic think tank (Open Europe—not so euroskeptic)

EU Observer ^ | 2012.06.11 @ 15:36 | Honor Mahony

[Olog-hai]

The UK would be better off staying in the EU, the country's foremost euroskeptic think tank says, amid a growing debate among Conservatives on the merits of a British exit from the European Union.

"From purely a trade perspective, EU membership remains the best option for the UK," Open Europe argues in a report published Monday (11 June).

"All the alternatives come with major drawbacks and would all … require negotiation with and the agreement of the other member states, which would come with unpredictable political and economic risks," it continues.

The report examines the idea—gaining traction among some euroskeptic Conservatives—that Britain could leave the EU but maintain its current trade relations, with the EU accounting for 48 percent of total UK goods and services exports.

But it rejects the four touted alternatives. The "Norway model," for example, would free the UK from expensive fishing and farm rules while giving the country access to the single market. However, the UK would have no say over the EU laws it would be obliged to implement.

Meanwhile, the "full-break"—a simple exit without any kind of brokered deal—would see British exporters "suddenly faced with new tariffs."

But the think tank, which is influential within Prime Minister David Cameron's Conservative Party, says "growing public hostility" means it should renegotiate it terms of membership.

"The common agricultural and fisheries policies, EU-wide regional funding, the impact of EU social and employment regulation on the UK economy and contributions to the EU’s budget" are cited as the downsides of membership.

And it notes that its current conclusion that EU membership is beneficial for trade reasons could change if the Union were to become more protectionist in the future. …

[Olog-hai]

Well, if there are that many drawbacks to merely leaving the EU, then it is the EU that is the aggressor and also a mercantilist aberration.

FTR, Open Europe was one of those “euroskeptic” think tanks that never advocated a break with the EU of any kind. They were always for being a member of this “empire”.

[wolfman23601]

So the theory is that if England splits, everyone will boycott their goods and services and refuse to sell theirs? Given the fact that they export very little I would say it gives them the upper hand.

[Olog-hai]

That’s how the EU has been threatening every member state that even breathes different thinking to the EU collective. They even threaten the US successfully in this vein—remember how they blocked the Honeywell-GE merger?

[Oatka]

Key phrase - “for now”.