By: DailForex.com
Britians, it seems, love to complain about the weather, but almost since the nation joined the European Economic Community (the forerunner to the European Union) in 1973, complaining about “Brussels” has been added to the list. It occurs to me that a more subtle solution to the UK’s perceived problems with the European Union would be to decamp the European Commission HQ from Brussels and move it to London. At a stroke, this would end all complaints about being dominated from “Brussels” and that “Brussels” (never Belgium) is bent on taking over Europe. It would change the factual situation not one jot, of course. Any key decision taken by “Europe” is discussed at ministerial level (or above) and needs to be endorsed by the European Parliament. Any significant decision requires unanimity between the 28 EU member states, so it could never be said that “Brussels” imposes its laws on the UK – or anybody else, for that matter. However, the truth should never be allowed to get in the way of a good story, as they say.
The UK media and sections of parliament have been blaming “Brussels” for every misfortune that has afflicted the UK for more than a generation. As a consequence, there is genuine public disaffection with the EU and a quaint, but misplaced, belief that we could leave, withdraw our contribution (€7 billion); ignore any rules and regulations not of our liking; streamline the bureaucracy; and carry on trading with our former partners in a “business as usual” manner. And, of course, British influence on the continent that we belong to would be unaffected. After all, the remaining 27 states would be tickled pink if the UK tore up all its agreements and left the party like a petulant teenager whose best friend is dancing with her boyfriend.
Public disaffection with the EU has grown to such an extent that a potential UK from it has become a political issue, spawning the UK Independence Party (UKIP) as essentially a single-issue party and “Eurosceptic” factions within mainstream parties. It has taken on such proportions in recent years that the ruling Conservative Party has pledged an “in/out” referendum on the nation’s continued membership of the EU by the end of 2017. Let us be clear that the bulk of the UK political establishment, the Confederation of British Industry and small businesses all think that the nation should remain in the UK.
The Conservative position is that the government will renegotiate the nature of the UK’s relationship with the EU and having won the concessions that it seeks, campaign for continued membership. It is a risky strategy given perceived public perceptions of the EU. Until
now, the points that concern the UK government had not been disclosed, but that situation has just changed.
The UK wants to see change in 4 areas:
* Protection of the single market for Britain and other non-euro countries
* Boosting competitiveness by setting a target for the reduction of the "burden" of red tape
* Exempting Britain from "ever-closer union" and bolstering national parliaments
* Restricting EU migrants' access to in-work benefits such as tax credits
Initial reaction from the EC suggests that the fourth point could prove controversial, if not actually breach existing legislation. The real test will be if the demands are enough to satisfy domestic needs such that they can persuade the British to vote to stay in the EU. This one will run and run for another two years.