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Britain flirting with the edge of three-tier Europe: Stubb

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Published 05 February 2013

The European Union is becoming a three-tiered club and Britain risks being left on the outer margins of it, Finland's Europe minister, who was among the first to warn about Britain drifting away from Europe, will say in a speech on Tuesday (5 February).

Alex Stubb, who last October compared Britain to a boat pulling away from the rest of the continent, praised Prime Minister David Cameron for being bold in his Europe speech last month, but said he had chosen a risky strategy that makes a referendum on EU membership almost unavoidable.

In his speech, Cameron promised voters he would hold a referendum on Britain's 40-year membership of the European Union by 2017, after he has renegotiated Britain's ties to the bloc and as long as he is reelected in 2015.

"I know better than to start giving advice on party politics in other member states," Stubb, who studied at the London School of Economics and is married to a British lawyer, will say in a speech to the College of Europe in Warsaw.

"The paradox with Britain is that it has the right instincts with many essential European policies, but its very nature seems to draw it to the margins of Europe.

"A referendum on Europe has its risk, but on the whole it seems unavoidable and can actually clear the air on where Britain stands ... I only hope that the end result is a Britain that is at peace with its membership."

Three-ring structure

The last three years of economic turmoil in the eurozone have pushed the single currency to the brink and forced all 27 EU member states, plus Croatia which will join in July, to reassess what sort of relationship they want with the bloc.

While existential questions are no longer being asked about the euro - which has strengthened sharply against the dollar, the British pound and the yen in recent weeks - there are serious doubts hanging over the shape of the European Union.

Stubb describes a three-ring structure, with the 17 members of the eurozone in the centre, a second concentric circle consisting of member states planning to join the single currency, and an outer ring of those countries that have no intention of ever adopting the euro.

In the coming years, he says in the speech, the three groups will become two: the euro-ins and the euro-outs. With at least three countries set to join the euro - Latvia, Lithuania and Poland - the euro-ins should increase to 20.

Among the eight euro-outs, most will be legally obliged to join the euro in time. But Britain, which with Denmark has a legal opt-out on adopting the currency, will be on the outer margin.

"So what we will have on our hands is not a Europe divided into north and south, but a union divided into euro-ins and euro-outs," Stubb says in the speech.

"This is an undeniable division. But at the same time we must be very careful in managing the relationship between the ins and the outs.

"The Cameron speech has its elements of upstairs and downstairs, but I fear that by opting out, Britain will end up downstairs, not upstairs."

EurActiv.com with Reuters

COMMENTS

  • Always best to be on the outer margins of a car crash

    By :
    Charles_M
    - Posted on :
    05/02/2013
  • Since Britain didn't join last year (as when the last "referendum on leaving" was held 40 years ago and everybody remembered Britain's economy had just suffered 10 years of lower growth outside the single market compared to continental economies within it), what kind of alternative strategy will the british today be proposed in order to convice a majority of them that leaving is better for their country's business and foreign policy interests?

    US's docile poodle? Recolonisation of the british empire? Cuban-style (splendid) isolationism? Or simply shipping across oceans alone with yet-to-find, protectionist partners (as North America, China, Bresil or Russia) rather than the richest economy in the world, most free-market and at their doorstep?

    Or more probably a non-member status similar to Norway Island or Switzerland, all in Schengen's agreements, implementing Brussels' regulation and contributing to its budget as Britain today, just without a say?

    By :
    uk-skeptic
    - Posted on :
    05/02/2013
  • His wife might be British, but he still doesn’t understand British Europhobes. Having a referendum won’t bring peace. If the vote is ‘Yes’, they’ll claim undue influence or a rigged ballot. And every time there’s any change in the EU, they’ll claim they should have another referendum.

    By :
    Edward Blois
    - Posted on :
    05/02/2013
  • UK-sceptic,

    There are other alternatives to the Norway / Switzerland model. One could for example look at the arrangements agreed with South Korea on the 1st July 2011, essentially trade and nothing else, just a thought.

    Edward Blois

    Under current legislation whenever there is a proposal to transfer power to Brussels the UK population must be offered a referendum. So as you say if a vote in 2017 gives a Yes to UK membership of the EU under renegotiated terms and the EU later wants to change, then yes another UK referendum will be necessary. That is the situation and short of removing this democratic safeguard it will remain.

    By :
    I want out
    - Posted on :
    05/02/2013
  • @ Charles_M

    Best one liner today!!lol.

    George Mc

    By :
    George Mc
    - Posted on :
    05/02/2013
  • I want out, like Bitain South Korea trades 55% of its imports / exports with its direct neighbours China and Japan. Even if they wanted this to change they couldn't.

    So with Britain trading 50% with the EU and aspireing to a same status as South Korea (10% trade with the EU), it may be a shame for continental markets to have reduced relations with the Uk, but a serious headache for the british: how exactly are they going to "replace" the single market, given that they once begged to join it? I shouldn't think Seoul was ever complacent enough to compare its relations with China and Japan to the ones it has somewhere in the North Atlantic...

    If Britain becomes a kind of South Korea for Europe, what's going to be the UK's China or Japan because everybody trades mostly within its continent today? I'm not sure you realise the amount of money involved in such speculations. It's like saying to the british people "oh vote out we'll take 50% of everything you buy or sell and reduce it to 10% and we'll find the rest with someone else (the EU is the closest and the richest partner the Uk can have).

    By :
    uk-skeptic
    - Posted on :
    07/02/2013
  • UK-sceptic

    With regards to Korea I was merely pointing out that the EU has entered into free trade agreement with another country without imposing all the social legislation etc., a precedent has been set. To quote from the EU press release by Karel DeGucht Commissioner for Trade on the Korean deal, “The majority of customs duties on goods were removed when the Agreement entered into force. Practically all customs duties on industrial goods will be fully removed within the first five years of application of the FTA1. For both industrial and agricultural products, Korea and the EU will eliminate 98.7 % of duties in trade value within five years of the entry into force of the FTA.” Seems a starting point for discussions to me, especially as it would seem to affectively rule us out of the CAP etc.

    With regards to the single market, we have discussed this length before, most studies (which I have quoted for you before but here some again NIESR 2011, Wolfgang Monchau FT 26/11/12, BIS report 2011, Prof Iain Begg LSE 2011 etc etc) suggest the single market is worth approximately 0.2 – 0.3% of UK GDP (this figure does not take into account costs membership) due to it’s highly incomplete nature and the strong resistance from France, Germany and others to complete it for services etc. If you look at your history you will see the UK did not beg to join the single market, they are considered one of the principle architects.

    Still what you and I think is largely irrelevant, it seems highly possible that a renegotiation will take place and that will then be put to the UK electorate. I am unaware of any other country that intends asking it’s electorate whether they want further integration but perhaps you could put me right on that.

    By :
    I want out
    - Posted on :
    07/02/2013
  • "I was merely pointing out that the EU has entered into free trade agreement with another country without imposing all the social legislation "

    The EU never had a social policy. As for defense, every attempts to create one, have failed. On the contrary, Europe is more often calling for the dismenteling of state intervention, Brussels generaly regarding it as a distortion of fair competition. At best the EU only took up the regulation already present in broader organisations (international labour organisation, Council of Europe...) and created minimum rules adjusted on the lowest-bidder member-state. Centralised european policies are only for foreign trade, argiculture, regional development and free market protection. All the rest (mainly police and justice cooperation) is negociated on the inter-governmental level, as any international agreement, with each member-state's approval required for most important sectors (social policies included).

    "If you look at your history you will see the UK did not beg to join the single market, they are considered one of the principle architects."

    What happened to EFTA? After the war, the UK could have taken the leadership in Europe, distributing Marshall's plan credits and structuring (west) european construction from London, neutralising the the possibility for Paris and Berlin to form an axe later together. It would have required for Britain a bit more anticipation of the post-colonial and globalised world, as well as a change in british historical european strategy of dividing the continent (a bit like the US, after the war turned their back to isolationist traditions and seize successfuly their opportunity in the world).

    Instead Britain has pretended to be a kind of "South Korea" for Europe, steping back passivly from european reconstruction and political restructuration. Paris, though less glorious after the war, gathered instead the american condifance and credits (through the OECD in the late 40's) and distributing the money around europe (London pretended not to need so much), as well as taking the leadership to shape the continent's post war configuration, based from 1950 onwards on common steal and coal agreements between germany and france, joined by benelux and Italy 7 years later (treaty of Rome). It took 25 years for the UK to join, and the EU's architecture was therefore designed without Britain, too buisy with it's empire (collapsing) and proposing only EFTA as a european policy (failed).

    By :
    uk-skeptic
    - Posted on :
    08/02/2013
  • It seems highly possible that a renegotiation will take place and that will then be put to the UK electorate.

    Highly possible, meaning:
    IF Cameron gets elected, if he manages to negotiate an agreement with other members matching what he says he wants (having only britain's membership to offer in exchange...),
    IF he doesn't change his mind (as he often seem to do) and surprisingly renounces after all on holding a referendum (because the cost of the people's choice may for example endanger the country's interests, among various other possible reasons sometimes happenning to be given when abandonning an election campaign's promise),
    IF business lobbies, the City, Washington, Edinburgh, the 3 governing british parties (all in favour of britain staying in the EU), the unions, the chattering classes, amongst many other forces at play haven't already forced it not to be put to the UK electorate anyway in the end...

    Given "I-want-out's" obvious personal wishes in the matter, what a lashing of optimism (disingenuous?)he reveals, labelling as "highly possible" such a long, obscure and conflictual process!

    By :
    uk-skeptic
    - Posted on :
    17/02/2013
  • UK-sceptic

    Of course Cameron can only offer a referendum if he is in fact re-elected, although Labour have let it be known that they may also offer a referendum if the 2015 election looks to be a close thing.

    If the rest of the EU refuse to re-negotiate, as is their right, Cameron is likely to find it extremely difficult to campaign to remain in the EU under the existing terms.

    Of course politicians change their minds, but he has made a very big issue of this promised referendum and it is difficult to see how he could go back on it now. Even if he did, do you think this will somehow make the UK a better EU member?

    Let’s not forget the steps we have taken in the last twelve – eighteen months.
    • The UK does not need to hold a referendum
    • We need to hold a referendum on the existing terms of membership
    • We need to re-negotiate terms but no in / out option to be offered
    • Finally we need to re-negotiate and then offer an in / out vote.

    I make no secret of my personal wishes, I thought the ‘name’ I use sort of gave it away. But to be clear I want to see the UK trading amicable with the EU and the rest of the World from outside the EU. I want the people of the UK (and other countries if they so wish) to be consulted on their views on this critical matter with an absolute understanding that a vote to stay in the EU would mean membership of the euro, Schengen, common fiscal policy, single foreign policy etc., in short full membership of a fully federal Europe, which would be implemented in the near future not over the next 20 – 30 years. Once that is understood and the precise political implications of such a vote are understood then we can all stand back and listen to the people.

    I see you have commented already on the posting today (18/02/13) showing that once again a clear majority of UK residents would vote to leave the EU. I suggest we will all have to wait to see how people actually vote, but I think anyone would be foolish to bet against such a vote never taking place.

    By :
    I want out
    - Posted on :
    18/02/2013
  • Iwantout: "I think anyone would be foolish to bet against such a vote never taking place"

    What's foolish is to call "highly possible" the holding of a referendum in 5 years that only one party leader promised (for the next elections in 2 years)while he already could as prime minister organise such a poll very quickly if he so wanted. This referendum clearly has all the tell-tale signs of a red herring. It's even more foolish to call it "hightly poosible" to be held, if this promise (for 5 years down the road) is already conditional on getting an "as-yet-unknown" better deal for Britain within the EU (already enjoying the rebate, will another opt-out or two make any difference?) so that Cameron could support staying-in. Just after being freshly reelected to power (with presumebly the same kind of negative opinion polls as today on the question, however many opt-outs he "won") you think Cameron would definitly hold this referendum fighting to stay-in, and risk such a defeat right way (on an issue of such international and economic importance for the country), just because he had "promised" it?...

    To support the holding of such a referendum is an other question. But calling it "highly possible" just because Cameron started taking about it, is not even "foolish" but completely naive and unfamilar with the basis of political communication.

    By :
    uk-skeptic
    - Posted on :
    24/02/2013
  • Just as a matter of information, Cameron’s promise of a referendum is not based on a “yet unknown better deal for Britain within the EU” He has promised a referendum on the continued membership of the UK in the EU whether or not new terms are agreed. I have previous acknowledged many times that it is entirely up to the other states whether they are prepared to offer different terms to the UK.

    If the terms remain as they currently are then Cameron (always assuming he is the PM) will have a hard job campaigning for continued UK membership of the EU.

    If new terms are offered then he will be able to campaign positively but as recorded elsewhere on this and many other sites he will still face an uphill battle due to public distrust of politicians in general and the EU specifically.

    If he were to put matters to the vote before the next general election it is highly likely the electorate would vote to leave the EU. Despite what you may think Cameron is a Europhile and wants to keep the UK in the EU, that is why he is delaying matters until he is in a position to claim a better deal more in keeping with the UK needs has been agreed.

    As I mentioned before, but you seem to have missed it, Labour, which is the only other realistic party of government has said that while it is against a referendum at the moment it does not rule one out. Indeed immediately after Cameron’s speech they let it be known that in the run up to the next election if matters look close they will offer exactly the same referendum as Cameron.

    I may well be naïve and foolish, but from where I am sitting the Conservatives have made so much of the promise and Labour have worked so hard to avoid ruling it out that I have difficulty seeing how either party could avoid the issue. But that is only my opinion.

    Reflecting on our discussions over several topics and many months I seem to spend a great deal of time explaining (and evidencing with statistics, quotes, historical precedent etc) my position while you simply ask new questions and make declarations. Please could you for once just answer two simple questions.

    Firstly, given the generally hostile view of the UK public to the EU over 40 years, what evidence do you have at all which suggests that a UK government could ever sign up to a fully integrated EU and accept the euro, Schengen etc. in the future ?

    Secondly, given the inability of the UK government to move forwards with the EU project, why do you want a generally difficult UK to remain part of the EU ?

    By :
    I want out
    - Posted on :
    25/02/2013
  • I didn’t get all your exploration of possibilities for this referendum to finally be held, but let’s admit the question seems so far complex enough for anyone being definitive right now on this eventuality taking place in 5 years. What’s more, I am not particularly in favour of the UK staying in Europe: first it isn't my country so I'd have difficulty forming a clear opinion about what's best and were I anyway to have one, it wouldn't make much sense what so ever. I wouldn’t even know, as a European citizen, whether I’m at all in favour of the EU itself (I mean as it is now): obviously I’m in favour of Europe uniting if it can and has the will to do so, but that also depends on what it does and how (maybe a stronger EU but not on any terms).

    For example with or without Turkey, with federated Regions or an executive board of strong countries leading the small ones, with deregulating or with protectionist strategies for the interior and exterior Common Market, with which banking policy, with austerity or with stimulus measures, with a strong Euro or inflation, with a pro-Palestinian or a pro-Israeli approach in the Middle-East, with which position on power-plant energy development or which dead lines in trade negotiations with China (without going into what I would personally prefer and leaving apart what my own country’s interests are for each of the above). For some of these concerns I could disagree with Europe’s choices, but I wouldn’t as a result become a Euro-sceptic, announcing the apocalypse and predicting that my country will soon manage so much better alone, because the people’s will always triumphs (and is proved to be the same as mine). I wouldn’t blame it on the EU quangocracy either, which is certainly no worse than NATO, the IMF, or the House of Lords as far as democracy is concerned.

    I guess if you take the EU as a whole (as some pro-“whatever EU” Europhiles may do) Brussels would indeed be better off without the “problematic” UK as a member: whether for generally making decisions altogether and coming to an agreement (which is what the EU is about), or for more specific questions concerning certain sectors the UK would no longer actively influence (as currently it often does from within the EU), federating other members against a common European policy: in the Iraq war for example or on financial matters, about which British lobbying in Brussels is quite famous, backed by European tax heavens such as Benelux, Malta, Denmark, Ireland, Austria, Latvia, and a couple of other confetti-members (who’d feel pretty lonely without Britain in Brussels, as would Cameron’s new Czech and Polish friends in Strasburg, the “cream” of the conservative MEPs).

    However I’m not reducing the whole of Britain to a clique of greedy pigs, and I'm sure, like myself a lot of British people and businesses don't identify themselves either with the City's interests or in the oil-lobby Hawks in the Pentagon. Actually I suppose many British people would also prefer the UK to leave the EU, for then London no longer could weaken improvements in regulating European finance or in forming an independent foreign-policy position from Washington (both fields in which the UK’s outputs in Europe are far from glorious). Paradoxically, many British must favour such an EU without the UK as in a way it so could constrain British policies more successfully as a result, and indirectly serve the British people’s interests in the end (more than the bankers’ or the CIA’s ones, which the UK often seems more busy defending in Brussels). The British know through history that continental integration has always ended-up conditioning their island’s immediate geo-strategic needs and therefore European policy (were the UK cooperative or not), however much they may sometimes fancy believing the contrary (as many other Europeans do for the fun of it).

    By :
    uk-skeptic
    - Posted on :
    27/02/2013
  • The comment that you are not particularly in favour of the UK staying in the EU is, as you might expect, completely fine by me although I do wonder why you have argued so fiercely for so long that it would be disaster for us if we were to leave, surely that is our problem.

    Most of us want to leave the EU not because we believe it will then go on to improve itself (although I am perfectly happy to say that I sincerely wish you all the best because I do not want you to suffer needless problems) but because we simply do not accept the view that the EU is in any form a solution to our problems and issues. Indeed it is normally regarded here as inherently corrupt, undemocratic and needlessly bureaucratic and the source of many difficulties. That is simply the widely held view and should be accorded as much respect as your view that the EU provides the opportunities you hope for. In short we just have a different view of the World and the best way of operating within it.

    Clearly you and I have fundamentally different views of the role, function and impact of the EU and the possibilities open to nation states. Neither of us will persuade the other but while I accept entirely that you and many (perhaps even a majority) on the mainland continent view the EU as the way forward, I would ask that you likewise accept that no such view exists in the UK and that this alternative view is just as honestly held.

    By :
    I want out
    - Posted on :
    27/02/2013
Finland's Foreign Minister Alexander Stubb (Photo: Finnish Institute of International Affairs)
Background: 

UK Prime Minister David Cameron promised on 23 January to offer Britons a simple ‘in-out’ referendum choice on whether to stay in the European Union if he wins the next election, scheduled for 2015.

>> Read: Cameron takes gamble with in/out EU referendum pledge

In his speech, given in London, Cameron said the Conservative party would campaign in the 2015 election with a pledge to renegotiate Britain's EU membership and then put the resulting deal to a referendum, possibly in 2017.

“It will be an in-out referendum," Cameron explained, saying that he would seek repatriation of several EU laws, and enshrine those in a new treaty to be negotiated with Britain's EU partners.

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