The Brexit Muddle: A right for every British to say

The following was written by Guest Blogger Anant Mishra and does not reflect the views of The Washington Outsider or its staff.  

Anant Mishra is a former Youth Representative to the United Nations. He has served extensively in United Nations General Assembly, the Security Council along with the Economic and Social Council. He is also a visiting faculty for numerous universities and delivers lectures on political economics and foreign policies. 


Many have supported the referendum on whether or not Britain should remain an EU member.   Since 2013, members of the Conservative Party, also known as the Tories, have been the most vocal proponents of a so-called Brexit by 2017.  Being the largest party in Britain, the Conservatives push demonstrates the growing anti-European Union sentiments.  The UK Independence Party also actively opposes the UK’s membership in the EU.

David Cameron’s return as Prime Minister in 2015 means he must conduct a secession referendum to determine whether or not Britain will remain part of the European Union, which in 2013 he called a “right for every British to say.”   

British, Irish and Commonwealth citizens over the age of 18 and are residents within the United Kingdom will be able to participate in this referendum. UK nationals, living overseas for more than 15 years are also eligible, along with members of the House of Lords and Commonwealth citizens in Gibraltar. 
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Those who favour the exit of Britain, commonly known as “the Brexit,” are now called the ‘Eurosceptic,’ due to their apparent belief that the multiple nations union weakens their own economy.  They argue that Britain without the EU will have a stronger economy.  They believe an independent Britain can derive more from trade negotiations and greater control over its immigration policies while gaining “freedom” from the burden of EU regulations and bureaucracy.
 
As of today, no member state has ever left the European Union.  The UK ‘s 1975 national referendum, which sought withdrawal from the EEC, represents the only time any country has ever held a referendum to distance itself from the continental governance that has evolved into the EU.
 
The UK is the world's sixth largest economy and the second largest in the EU.  This status offers many benefits, especially from low interest rates.
 
Those opposing the Brexit, which primarily includes members of the Labour Party and the Liberal Democrats, strongly favoured the European Union.  The Labour Party, SNP, Plaid Cymru, and the Liberals make up the so-called Europhiles.  
 
“There is a huge gulf among young and older voters over the European issue - with almost two in three young voters backing the European Union.” About 63% between the ages of 18 and 29 wish to remain a part of the EU; whereas, 56% of those above the age of 60 wish to leave.  Middle aged groups are roughly even and those holding a university degree wish to be with the EU while those from the lower income groups have take issue with the EU.  This is demonstrated in the noticeable differences between the Conservative and Labour Parties.
 
The Labour Party is the largest opposition to the Conservatives while the Labour Party works closely with Liberal Democrats.   Both the Labour Party and the Liberal Democrats argue that without the EU, the UK would be vulnerable to added risk.  This would, in turn, undercut its influence throughout the International Community, thereby creating unavoidable trade barriers and undesirable tariffs.  
 
During the 2015 election the Liberal and Labour parties, however, strongly contested the referendum “to transfer more powers from the UK to the EU.”  Today, Labour has removed its self from the opposition in order to clarify their stance on EU, UK relations.  Now, it is clear that the Conservatives will be able to pass the Referendum Bill without a battle.
 
Before coming to office, David Cameron was very much aware of growing discontent for the Europe Union.  Recognizing those sentiments, he declared a referendum in 2013. Despite declaring the referendum, however, Cameron is still very much in favour of the EU.
 
The four strong discussion points for Cameron are: integration, benefits, sovereignty, and the Eurozone.
 
He wishes to integrate Britain with the entire EU by renegotiating regulations with the European Union.  He also wishes to address some important concerns of the UK and other non-member nations: especially concerns on the Euro and discriminatory problems that are likely to arise from it. He expressed his concerns through a speech addressed in the house.
 
He said “Non-euro members like Britain, which are outside the Eurozone, need certain safeguards in order to protect the single market and our ability to decide its rules, and to ensure we face neither discrimination nor additional costs from the integration of the Eurozone, because the European Union and the Eurozone are not the same thing.”
 
It is an undeniable fact that EU membership has its own perks.  As a matter of fact, millions of jobs have been possible because of the EU.  Today, the EU is the world’s biggest market and plays a crucial role in global trade relations.  The UK has benefitted mostly from its EU trade relations.  More than half of British exports received “corresponds to almost 15% of national income.”  Britain leaving the EU is a major economic concern while regulatory issues and border controls amplifies the potential losses.
 
Europhiles argue that an isolated UK will face more difficulties than selling goods to non-EU member nations. They worry about the fact that it would consume years for trade negotiations to come at play, which would then result in missed economic opportunities. It will make UK less competitive in the market.
 
They further argue that the flow of migrants beneficial for Britain’s economy and this helps them pay their goods and services, and further fuel the economy with labour.
 
Trade has always been an essential to the United Kingdom's economy – and the UK has always had strong economic relations with the rest of Europe. In 2014, the EU accounted for approximately 44.6% of UK exports in terms of both goods and services.
 
Recent trade developments between economies outside of the EU leaves many to question British trade tactics.  Non-EU nations have grown involved in trade with the UK, particularly when it comes to exports.  In fact, more nations have trade relations with Britain than the EU as a whole.
 
Norway and Sweden, two non-EU members, have exceptionally strong trade relations with the UK. Both these nations have exceptional low unemployment rates and more stable GDPs than other EU member nations in the EU.  They are a perfect example of surging economies outside the EU.
 
Meanwhile, EU membership comes with a price. In order to remain a member, member nations have to contribute to the EU budget. Eurosceptic are very critical in this matter as the amount paid by the UK to the EU outpaces the amount of investment done by the EU in the UK.  Within the past 32 years, Britain has never received more than it paid in.  So, it will not benefit the UK, even if it decides not to leave. Many Brexit supporters view potential savings as money that can be used to further propagate the UK’s image on the global arena.
 
With that in mind, a Brexit is not the only issue in play.   Cameron does want to some create distance between London and the EU.  He wishes to “allow the UK to opt out from the EU's founding ambition to forge an “ever closer union” of the peoples of Europe so it will not be drawn into further political integration.” This does not necessarily make sense as the UK has benefited greatly from the EU thanks largely to exports.  
 
Cameron also wants to reinstate power in the parliament rather subjecting British sovereignty to the EU. This clearly means blocking or limiting European Union legislation.
 
Many British officials have expressed concerns over regulations of EU member nations.  In fact, Britain is now launching initiatives to cut the red tape, especially in the: energy, waste, agriculture, care homes, and mineral extraction sectors.
 
Sajid Javid noted “I am determined to take the brakes off British businesses and set them free from heavy-handed regulators. The government’s pledge to cut £10 billion in red tape over the course of this parliament will help create more jobs for working people, boost productivity and keep our economy growing.”
 
Coming to the question of “too much to give and too much to take,” the benefits received from the EU membership cannot be ignored.  Cameron wants the EU to recognise the fact that the Euro is not the only currency available as part of a larger effort to benefit from non-member nations while sending a message that the “UK is not responsible for Eurozone bailouts.”
Concerns over the UK’s secession has hit one of the UK’s largest industries hard: the automotive industry. “Automotive accounts for 10% of the UK’s trade in goods, suppliers add £4.8 billion in added value and the sector as a whole turned over £60.5 billion last year.”
 
Being such a crucial sector, it is very important for the UK to examine its sectors before determining the secession. Losing the EU will also mean inconsistencies in sectors like automobile as “UK-produced vehicles are sold across the largest Single Market in the world, unhindered by any tariffs or costly regulatory barriers.” If the UK ever exits the EU, a wave of inconsistencies will hit the entire automobile sector.
 
Eurosceptic claim that Britain might negotiate “an amiable divorce” in an effort to find alternate solutions. The UK can follow the Norwegian model, which even after Britain exits the EU, it can join the European Economic Area, which would then allow access to the markets and free the country from EU regulations at the same time. Or Britain can follow the model of Switzerland, which is again a non-EU member.  The main difference between Switzerland and Norway is that Norway is a member of the European Economic Area (EEA), whereas Switzerland is not.  It is likely Britain will follow the Norway model.
 
Alternatively, Britain can go for Free Trade Agreements which aligns its model with that of Switzerland while securing more stable finances. If the UK chooses to leave, it could follow the steps of Norway and Switzerland took by joining the ranks of the European Free Trade Association, thus accessing the European Union single market without the Common Agricultural Policy, the Common Fisheries Policy, and the European Court. The EEA and EFTA have collaborated in order to help non-EU member nation.
 
The Norwegian and Swiss models lack autonomy in decision making from Europe as they are unable to vote for EU policies resulting in absolute absence from the crucial decision making process.  Moreover, the classical technique of Free Trade has been globally critiqued.
 
Furthermore, those favouring the Brexit also criticise Britain’s immigration policies, which is currently in regulation with the EU. They disagree with the Britain’s “open-door immigration,” which allows immigrants to steal jobs and welfare system offered by the government.  Since 2014, the net migration within the UK has doubled and is now a big concern.
 
Increasing numbers of immigrants have also compromised the National Health Scheme within Britain as they have taken advantages of its schemes. This has resulted in an exponential increase in the tax. Medical analysts estimate it to cost more than £1 billion per year to treat immigrants.
 
Concerns over a potential Brexit have alsosparked a series of debates for Scotland and the concept of Scottish independence. In 2014, Scotland voted to remain within the United Kingdom as a member of the European Union; however, if Britain tends to exit, it will open a series of debates on Scottish Independence. The future of Scotland seems to hang on a Brexit.  
 
A Brexit would soon create the potential for another referendum for Scottish independence.  Not only will the Scots have to decide to stay within EU or leave the UK, they will have to faces problems that would come with independence. 

Anant Mishra is a former Youth Representative to the United Nations. He has served extensively in United Nations General Assembly, the Security Council along with the Economic and Social Council. He is also a visiting faculty for numerous universities and delivers lectures on political economics and foreign policies.