Is There an Economic Case for Leaving the EU?

Generali

Whenever I see the EU discussed here it seems to descend into a slanging match about immigration. I was wondering what people think of the economic case for being in or leaving the EU.

My view is that unfettered access to the single market is a huge benefit to all EU members especially for trading nations like the UK and that quitting the EU would put that at risk.

CLAPTON

To compare being a full member of the Eu and an ex member then one needs a scenario about what the trading relation will be after we leave.

Currently we don't know that they will be.

Whether we have unfettered access to the single market is a mute point : do most of the EU governments really give contracts entirely on competitive merit?

michaels

1) There is the report today that the BBC claims shows immigrants were worth 5 billion (would we have noticed if we hadn't had it?) to the UK but actually seems to imply over a longer time period there was a net cost:
http://www.bbc.co.uk/news/business-29910497
(Lots of methodological questions even with this small claimed benefit)

2) There is the question of whether the UK would still be able to trade with the EU even if it is not a member, lots of other countries do after all. Given the UK runs a large deficit with Europe any trade reduction would appear to damage Europe worse than us. There would also be a saving on the funds paid to the EU.

3) The CAP imposes a large burden on UK consumers.

4) EU regulations may impose a large burden on UK employers resulting in higher unemployment

5) A reduction in the labour supply whilst reducing overall income might result in the unskilled earning relatively more thus resulting in 'increased fairness'

6) Whilst the EU might try to stop EU financial transactions taking place in London there would also be scope for the UK to avoid for example EU transaction taxes and thus achieve more trade with non-eu countries.

7) The EU believes in ever closer union and will gradually require more EU control over economic policy, EU economic policy does not seem like a model the UK should be moving towards at the moment.

El_Torro

I imagine we'll still be part of the free trade area, there's too much at stake for all concerned for anything else to happen.

The real issue is that we will still need to abide by EU rules but have no say on what those rules are. So we will be giving up a degree of sovereignty. Euro sceptics claim we'll regain sovereignty by pulling out, I don't see how though.

Generali

El_Torro wrote: »

I imagine we'll still be part of the free trade area, there's too much at stake for all concerned for anything else to happen.

The real issue is that we will still need to abide by EU rules but have no say on what those rules are. So we will be giving up a degree of sovereignty. Euro sceptics claim we'll regain sovereignty by pulling out, I don't see how though.

Plus also the UK would continue to pay to cover EU costs as a member of EFTA.

Bantex_2

Depends how you define economic case.

SailorSam

I can remember the time when we first started to try to get to be a member of the Eu, or Common Market as it was then. There were 5 members and we wanted to be number 6, but the French didn't want us. I was all for joining i thought of the extra benefit we'd get from being a member of a large market. But in those days it was a union of equals, you could say all the members were successful and rich in their own right.
But it's changed so much now as more and more of the poorer countries have joined, and the free flow of workers across Europe is no longer like 'Auf Fiederstein Pet' with our brickies going to work in Germany. Now it seems the Uk has opened up her gates to millions from countries which are almost undeveloped.
But when i see these long long numbers that the anti-eu people throw at us saying this is what it costs i'm all for getting out, then someone comes forward to say that long number equates to only 0.7% of Gdp and i think we must get at least that out of it.
But i would like an immgration system a little more like that in Australia so that we only accepted trained people, and certainly child benefits that couldn't be sent back home to supprt families not even here.

Thrugelmir

August 2014

Exports to EU £10.7 billion

Imports from EU £15.9 billion.

Trade deficit for the month - £5.2 billion

Who needs the trade the most?

kabayiri

There was talking on the radio today about the EU potentially entering a long period of stagnation, with low growth, not dissimilar to Japan.

Should we be linking our fortunes so closely to a potentially weak partner?

SailorSam

During the Scottish referendum there were companies with their bags packed ready to move down here if the vote went the wrong way. Equally there have been some large multi national companies said if the Uk wasn't a member of europe they move somewhere better for their business.

Thrugelmir

SailorSam wrote: »

Equally there have been some large multi national companies said if the Uk wasn't a member of europe they move somewhere better for their business.

They don't pay their taxes anyway. So won't be missed.