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UK and Europe: For better, not for worse

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Published 07 November 2012, updated 09 November 2012

The UK grows increasingly euro-sceptic, vetoing the Banking Union, threatening the EU's long-term budget and promising a referendum on membership. However, a EurActiv ranking of the "40 most influential Britons on current EU policy-making" underlines British influence on European issues. Complementing a federal eurozone, Britain may opt for a 'focused membership’ centred on a better regulated single market, write Christophe Leclercq and Sharon Leclercq-Spooner.

Christophe Leclerq is the founder of EurActiv.com and Sharon Leclercq-Spooner is board member of Fondation EurActiv PoliTech. They both speak in a personal capacity.

As a French-English couple, we were driving recently from Brussels to Normandy, the Scandinavian-Continental roots of today’s United Kingdom. Since 1066 and the Norman conquest, Britain has been deeply connected to Europe. And as we drove along, we were reminded about one of our wedding gifts, ‘Les rois maudits’, a book on the hundred years war. The old brotherhood turned into rivalry and then back to cooperation...

Today, desires for independent sovereignty are confronted with the realities of interdependence. Thinking of our bi-national offspring on the backseat, we turned to the future: how to keep the UK in the EU while allowing progress in European integration for others?

On 14 November a jury chosen by the media EurActiv.com will release its list of ‘Top 40 influential Brits in Europe’. British politicians and policy professionals still greatly influence the future of the EU. However, some individuals are doing so in such a manner that the country itself is losing ground. This is a real shame.  

Europe needs Britain just as much as Britain needs Europe. Free trade and financial markets came from England. The 1992 internal market and the start of CAP reforms were notably British ideas, under Margaret Thatcher. Britain supports a culture of good governance, policy consultations and tough budget evaluation. ‘Brussels’ may have a history of excessive legislation, slow processes and some unjustified spending. But these weaknesses are being tackled. Criticism from both sides is often ideological and no longer fully justified.

Being in a ‘club of one’ can feel lonely. The special relationship with the US has faded. Ireland remains in the eurozone. Actually, the UK club might shrink further: Scotland questions the United Kingdom, not the EU. Apart from neo-imperial dreams around the Commonwealth, where are today’s concepts under David Cameron?

Being anti-Brussels is not a unifying vision: it excites folks up to a referendum, but does not build a solution for the future. Allies in the EU are few: unfortunately, British proposals, however sound, are increasingly viewed with cynicism. Countries that want to reform ‘Brussels’ do not address London, but Berlin, and sometimes Paris. 

Just like France and Germany, rather than shouting from the sidelines, the UK could be “a force de proposition”. It is slowly learning that it cannot stop others.

The City of London’s concern about Brussels rules was misinterpreted by David Cameron as justifying an attempt to block the EU, end of 2011. In fact, internal market matters, including financial legislation, are voted at the EU Council of Ministers by majority. Rather than putting itself in a corner, the UK would be stronger making proposals and building alliances.

It would be foolish for the UK to give up its EU seat and rebuild a free trade zone outside the Union. This was the mistake of the 1950s, snubbing the nascent EEC and creating the ill-fated EFTA. In a global world, BRICS countries wish to trade better with the EU, not just Britain. The UK should not just be an EU policy-taker, in a European Economic Area, like Norway. Britain should also not become an ‘associated member’ as some politicians suggested: the EU has many association and cooperation agreements: association is too weak a concept. Rather, it might make sense to recognise the reality of variable geometry – i.e. that members of the EU club do have some choice on activities– as for Schengen and the Eurozone. 

This could be called a ‘Focused EU membership’. Just like some members already enjoy ‘enhanced cooperations’ on some specific policy matters, still using the normal EU institutions.

We are not talking here only ‘l’Europe à plusieurs vitesses’, long accepted by the EU establishment, since ‘laggards’ were expected to catch up. Now we need to break a Brussels taboo, and draw few concentric circles which are clearly distinct. Still, this is not quite the feared ‘Europe à la carte’, also known as cherry picking. The ‘focused membership’ builds on the initial Common Market, modernised, and includes labour movement, therefore not only economic regulation. Reformed institutions are needed anyway: this concept would complement the debate that Germany launched on political union for the eurozone. In fact, this new approach could apply inside the EU and outside, among candidates and neighbours. 

Indeed, one should connect ‘the UK question’ with a new vision for ‘Europe after EU28’ (Croatia becoming the 28th member in 2013). Equating European integration with EU enlargement is over: the artificial walls between ‘opt-out members’, membership candidates and other neighbours are crumbling. One third of Europeans are likely to stay outside the Union, but deserve the four basic freedoms, boosting growth for all.

This is where the idea of a Pan European market comes in. It is relevant for both non-eurozone members of the EU, like the UK and most of Central Europe, for Scandinavia, and for non-EU countries like Norway, Switzerland, Turkey, Ukraine, and further East. In a 2010 article, we called this ‘the new EEC’. This grouping of very different countries will surprise some experts, especially those specialising on one of them. But looking into the future: is there such a big gap in substance between, on the one hand “EU less ‘opt outs’" for non-eurozone members, and on the other hand “Custom Union plus” for attractive neighbours? The main differences are institutions and foreign policy.

Thinking ahead rationally, business and civil society should offer new ways forward. For the referendum expected in 2016 on the EU, they, not just domestic politics, could help formulate the question. In fact, probably several questions. Pandering to eurosceptics on all sides and reflecting the departure clause of the EU Treaty, a conditional question on leaving the EU might be necessary. It should be complemented by a constructive question well in line with UK traditions, avoiding a confrontation course, and providing guidance for future governments.

That referendum could actually turn into a positive counter-fire to uncontrolled disintegration. How about this formulation:

  1. Should the UK lead a Pan European market boosting jobs and global competitiveness?
  2. Should the UK leave the European Union, if the country does not achieve its goals?”

This referendum, and the general elections in-between, are not the only fora. In the meantime, we have the 2014 elections to the European Parliament. One should think now of proposals for that debate, giving them democratic support. For example ‘changing European integration to fit the 21st century.’

For our English-French children, Europe is a reality, not a question. It is the same for continental students at English schools and even for monolingual Brits holidaying in Spain. Our car reached the Normandy coast at Deauville, where the 2010 Summit between Russia, Germany and France took place. Similar Pan-European ideas were expressed at that time: now the UK should not be sidelined again. Britain’s membership of the EU needs changes, but to stay in. Plus ça change…

COMMENTS

  • The world is bigger than Europe. Britain cannot cope with any more people coming here.

    By :
    Matthew Thompson
    - Posted on :
    07/11/2012
  • I am not entirely clear from your piece how the assorted rings of the new EU + Pan European Market would be managed. The EU has consistently felt the need to legislate on all manner of issues; increasingly the majority of these regulations / directives / laws etc have nothing whatever to do with trade but are social in nature. Indeed I would suggest that it is this tendency which has given rise to euroscepticism in the UK (and elsewhere) and reinforced it over the years. I would like to make it clear at this point that I do not think anyone contests the right of the EU to pass any regulation it likes relating to trade and require those they do business with it to comply with those laws, indeed every other sovereign country / trade bloc does exactly that.
    If you are suggesting that this propensity to legislate in all areas apart from trade will cease (as is the case for Norway etc) for the Pan European Market then I strongly suspect that you are in fact propounding exactly what the vast majority in the UK want, trade opportunities without the political aspect and social interference. Personally I could even live with the construct being entitled “the new EEC”. However, if you are suggesting that all the countries in the Pan European Market would simply have to accept ALL the directives produced by the EU regardless of the area of competence then I doubt very much that this would be acceptable as you are straight back into the political / social interference aspects of the current EU.
    The idea that “a conditional question on (the UK) leaving the EU might be necessary” I do not think is in doubt any longer. Increasingly it seems there will need to be a period of renegotiation with the resultant terms clearly defining powers for both the EU and the UK. Any question would therefore have to be phrased along the lines of
    “Should the UK accept the offered terms of EU membership ?”
    A negative response would result in the UK leaving the EU.
    I am sure we can all agree that the current situation cannot continue as it frustrates all parties.

    By :
    I want out
    - Posted on :
    07/11/2012
  • I do not see the use of further complicating the EU's institutional or conceptual setup just if keep the UK inside the EU. If the UK wishes to continue its strategy of blocking the EU from within, very well, but there will now be automatic retaliation. If it wishes to exit, no problem, it enters into a simple customs union with the EU subject to lower tarriffs and certain simplified reciprocal procedures for travel and business. But it loses its veto power in matters that anyway no longer concern it.

    By :
    Charles
    - Posted on :
    08/11/2012
  • This piece to me lacks any substance. It is a abstract and hypothetical and ignores the reality of Britain's £50 Billion yearly contribution to the EU, her committed enforcement of EU legislation blatantly ignored by the France (where I too live), and many other countries as well. Europe has been a spendthrift, like a child in a sweetshop, and rather than learning lessons, it is now rushing headlong to compound its errors, propelled by the vaulting ambitions of such as Draghi and Monti - clearly muppetised representatives of the US banking axis from which they originate.

    Decades of unsigned EU accounts, legendary for their 30% balancing figures (unaccountable expenditure) and the endemic corruption following on the reconstruction of European infrastructure using EU money leave a very bad taste for the British. Have a chat to the fishermen whose boats are now in Spanish ownership, whose fishing quotas have been sold, as a result of fisheries policy rigidly enforced by the British, but the subject of derision by the Dutch. Portuguese, Spanish, and of course the French. 10 years ago, you could not move in France without tripping over placards proudly announcing the 50% funding of municipal projects by the EU. At the same time, you would have been pressed to find any at all in the UK.

    The simple fact, as any French person will inform you, is that Britain has very little that France - and the EU actually wants or needs to buy, though the continuing handout is of course not up for discussion.

    The enviable quality of life here in France come at a price. The Belgians, French, Spanish and Italians are at the bottom of the recently published Bridgewater associates table of self sufficiency - an indicator of future prosperity. Some of the significant indicators BA compiled were to do with propensity to work - hours per annum, non-working days per annum, and also proportion of life expectancy worked before retirement. It will come as no surprise to hear that the same siesta kings brought up the foot of those tables as well. Britain was adjacent to the USA and Switzerland, with Germany close by. The stars were the countries of the far east - Thailand, Vietnam, Singapore etc.

    Anyone who has tried to engage the services of a French artisan - macon, carreleur etc will attest to the vast differences differences between the UK and France in terms of the work ethic. "We work to live, we do not live to work" as they are wont to tell us unprompted. In autumn and winter, work grinds to a halt - "la chasse". In summer, all is planned around the school and family holidays. Everyone takes at least a month. I have mentioned France only because it is where I live - Belgium, Itlay and of course Spain are deeply challenged on the work ethic front too.

    These contrasts do not sit well with an awakening British public, and no amount of abstraction and comfortable theorising by the EU-parasitic EurActiv.com will change that. The EU has an extensive track record profligate spending, endemic corruption. total lack of financial integrity and accountability and this cannot be ignored, but neither can it be changed within the existing structure, which is a luminous textbook example of the self sustaining wrong headedness of big government.

    By :
    Dr Rieux
    - Posted on :
    09/11/2012
  • Whereas all supporters of the EU have their own views as to what the ideal 'Europe' might be (e.g. more federal, less bureaucratic, more direct elections?) the only view that really counts is that of the Court of Justice.

    As a guardian of the principle of integration, it oversees the route to ever closer (and irreversible) integration.

    It isn't possible to give powers back to member states (acquis communautaire, ECJ Case 6/64).

    Even where 'competence' is said to lie with member states, the EU still presumes a right to intervene (Cases 83/98, 186/01, 1/05).

    And renegotiation isn't possible in any meaningful sense for Cameron's Conservatives, as whenever treaties get revised, it must be in the direction of ever closer union. It is a condition of membership that member states accept the goals of the EU as well as the letter of the law.(Cases 11/00, 15/00).

    Therefore the only honest referendum for the UK is in and fully committed, or out and working for what the EU envisages in the Lisbon Treaty - good neighbourly relations and free trade.

    By :
    Jools
    - Posted on :
    09/11/2012
  • Here is the Opinion's co-author, writing from Istanbul where he attended a related conference on French-Turkish relations in a European context.

    Thanks for all readers so far, and providers of comments, both on the website and privately.

    Yes, our short piece does not cover all points. For example, whether the UK in a 'second circle' would try to get out of some budget commitments. Therefore this debate will not be a full swing before there is a deal on the so-called financial perspectives. Which may come sooner than on fears...

    At this Istanbul conference, I heard many speakers calling for such a 'new EU architecture'. Mainly Turks and French, but also some others. Some of them pointed to 'solving two problems with one stone', meaning the second circle would be open to both UK, Turkey, and several others. Before politicians do the hard bargaining, and then the electorates decide, I believe civil society has a chance to flesh out such concpets.

    So, dear readers, what would the 2 (or 3 or 4) circles involve? and which countries would belong to what?

    There may be more EurActiv news reporting on such issues soon, so keep an eye here. Thanks for your interest.

    By :
    Christophe Leclercq
    - Posted on :
    09/11/2012
  • Jools - very interesting - lets assume you are correct - as seems likely given the barristerly tone of your post - So why and how is it that Draghi and his merry men seem to be driving a coach and horses through their mandate?

    If the final arbiter is to be the court, what is to stop any member state from resisting any attempt to gain recourse to that court? After all, the other leading administrations of the union are past masters at ignoring what they do not wish to address, and kicking the can down the road.

    I seem to recall that once before the UK withheld its contribution and I imagine it could, if pressed, do so again. The trade barriers which have been subtly and duplicitously erected across the union have maintained doors closed to most British initiatives for many years, and the importance of the union to the UK has been effectively reduced to the single but significant advantage of influence - size matters.

    By :
    Dr Rieux
    - Posted on :
    09/11/2012
  • It is illusory to have several circles. It might be intellectually satisfactory for geometrically oriented thinkers, but it does not work. Indeed having concentric circles means that one circle votes as a block- see for instance Schäuble's plan for the eurozone voting as a block in the EU Parliament. That does not mitigate the problem of vetos: it only reinforces it. Because if you are outside of the circle, you have a greater incentive to use your veto, as your only way of having your voice heard.
    Ancient Poland used to have a similar system, where each "member of parliament" had a veto on ALL legislation. When one would wield his veto, the others would form a "confederation", similar to an "EU circle" and usually bully the dissenter. In the end, of course, confederations did not solve anything, and the system remained anarchic because of the very veto rule. And Poland ended up partitioned between more powerful neighboors who had cynically supported the veto system in order to annex the country.
    The real solution is not to form circles, but to extend majority voting, i.e. to attack the vetos.
    This is where the UK's fundamental interests clash with those of the EU. Indeed, the EU, even reduced to a simple economic area, is unconceivable without a functioning single market for services, including above all financial services. However, financial services represent 15% of UK GDP, since the country gave up on its industry at least 20 years ago. Furthermore, in order for a financial center to thrive, it needs to be deregulated. Or else money ends up in less regulated centers. Therefore, the UK has a vital interest in the absence of European regulation in the area of financial services - a prerequisite in order for the single service market to properly function, and also to solve the Eurozone crisis- because this would threaten the preeminence of the City compared to other centres such as New York, Singapore, Hong Kong or even Zurich.
    Therefore, it is in the interest of both the UK and the EU that the UK leave the EU.

    By :
    Charles
    - Posted on :
    09/11/2012
  • I have never seen such cool, thoughtful, sensible posts on such a subject as the UK and its relationships with the EU.I think all of the "postees" especially Dr. Rieux and Jools make particularly salient points. I have felt, instinctively, that the EU in its many earlier guises was not right for Britain, not because I lived on past glories (I am proud that it had a great empire and has had a glorious and sometimes inglorious history)but because "it just did not feel right". As the EU evolved, I became totally distrustful of British politicians who, I feel, did not serve the need and cause of Britain as a sovereign nation but were too gutless to stand up for us in the same way that, for example, French politicians brook no interference with the CAP. There can only be one way forward that I could trust - leave the EU and renegotiate on trade matters only. All other policies are a matter for Britain, its electorate and politicians. I am happy to gamble on Britain's position in a New World, standing on its own two feet. If we fail, it will be entirely down to us and not because we've been dragged down by 26 other leaders fighting/compromising over their own local issues.

    By :
    Don Latuske
    - Posted on :
    11/11/2012
  • Jools/Dr Rieux/all other pseudonyms, you need to check those cases again. There is no (and never has been) a barrier to the repatriation of powers. The EU being essentially an international treaty agreed between states, it's for those states to decide how to organise themselves. Hence, Poland obtained a partial opt-out from the Charter even though it had agreed to be bound by it as part of its EU Accession Agreement.

    Case 6/64 (Costa v Enel) is about EU law taking priority to national law in the areas where member states have agreed. Case C-186/01 is about military service in Germany and the fact that it can decide not to require women to undertake it. Case C-1/05 concerns the grant of residence permits in Sweden. Case C-83/98 is about state support paid to a French racecourse company. I don't see how any of these are relevant here; in particular, case C-186/01 contradicts your reasoning.

    By :
    Patrick
    - Posted on :
    12/11/2012
  • @Christophe Leclerq
    Whilst I understand and sympathise with your well-intentioned article, I believe that it is in the EU's interests for the UK to leave and for the rest of Europe to recognise that it should have followed President De Gaulle's advice.

    UK accession in 1973 was made not as a part of a wider strategy but as a kneejerk reaction to its declining influence and fortunes since the end of WW2. It never had a clear idea of what it wanted to get out of Europe and chose instead an approach centred on what it paid in and received back. Having entered, it didn't constructively seek to improve the functioning of the EU, but instead either took an approach of benign disinterest or active blockage. It settled on the idea that the EU should in fact be no more than EFTA (i.e. a simple trade zone) and when this strategy was not accepted by other states, so it sought opt-outs and EU enlargement on a massive scale in the hope that it would dilute the organisation.

    Having seen the new EU member states plus its old allies Denmark, Ireland and Sweden move towards greater EU integration, the UK is now confronted with the implosion of its EU policy leaving it with little other option except to stay or go. Given that 20+ years of anti-EU propaganda in the UK press have toxified anything with the word "Europe", the UK government is faced with snowballing public opinion for an EU referendum/exit.

    With this in mind, the UK will go to Brussels with the idea of negotiating for itself "EFTA status" (or as close as possible) whilst remaining an EU member, then having this approval via referendum. Ff the other member states refuse and/or the referendum fails, the UK is out. A highly risky strategy which bases itself on a number of presumptions: (1) that the other member states won't refuse, (2) that the electorate will accept the new deal, and (3) that in any event the EU will want to or be obliged to grant the UK no strings access to the single market.

    I don't see it happening and I predict that by 2020 the UK will be out of the EU and that by 2050 that the UK (or most of it) will be back in as one country or as several.

    By :
    Patrick
    - Posted on :
    12/11/2012
  • Patrick - marvellous stuff. If you are not an EU functionary you would certainly get a job in any of the administrations. Lashings of detail, deflection of the discussion as if sliding off Teflon and by the time I'd finished reading it you had made me forget what the discussion was about.

    The only thing is, I could not detect anything in what you said that relates to the two posts I had made.

    By :
    Dr Rieux
    - Posted on :
    12/11/2012
  • @Patrick - I should have added that I am not Jools and have nothing to do with the poster Jools. Also, I have now read the tedious background cases mentioned. I think the principle in 6/64 is that EEC law - with the ECJ as its conduit - keeps the whole of its power to itself and shall therefore override WHERE THERE IS ANY QUESTION OF THE APPLICATION OF EEC LAW.

    From that it looks as though Jools was on the money. though it maybe that I have not understood your expression "except in cases where member states have agreed" - perhaps you could elaborate what "have agreed" is intended to mean if I have misunderstood your point.

    BTW I agree that to date no-one has made a convincing case for the UK's membership of the EU, and there has been no serious analysis or quantification of the "benefits" delivered by that membership to date. But then that should not be surprising - this is the union which "regulates" everything else, but has not been able to produce a set of unqualified accounts. Perhaps it has now found a more "compliant" auditor to make the problem go away.

    By :
    Dr Rieux
    - Posted on :
    13/11/2012
  • @Dr Rieux
    The EU operates on the basis of what is known as the principle of conferral (there's a Wikipedia article on it), which in short means that the EU can only act where it has the competence (provided for in the Treaties) to act. The list of competences are set out in Articles 3 and 4 of the Treaty on the Functioning of the European Union. Then, even in these areas, the EU can only act if it is able to show that its action would meet the requirements of subsidiarity and proportionality, i.e. that a better result could not be achieved by the member states acting themselves.

    A good example of this principle in action is Case C-376/98 where a directive on tobacco advertising was annulled because the Court judged that the EU did not have competence in this area.

    By :
    Patrick
    - Posted on :
    13/11/2012

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