No, but it isn't really that far off. Norway/Iceland have to abide by pretty much all European regulation except that which applies to fishing (the only real reason they're not in the EU) and agriculture.
And Immigration. Which is rather the point those right-wing groups are trying to make, no?
I think what they want to do is reduce their participation in the EU to economic only.
The problem with that is that we will not allow this. You want to be part of the single market, you play by EU rules. Plain and simple.
Ok, but this seems to be a bit of change in ground from what you were saying earlier. Before you seemed to be implying that, economically, the UK could not afford to leave the EU. Now you're saying that economically they could, but that a vengeful EU would damage it's own trade interests for the sake of punishing another country.
Satisfying though that may sound, most countries don't tend to behave like this in practice.
It's a difficult situation. On the one hand, the EU has a lot that the UK wants, including valuable markets, economic ties, police cooperation, political influence, etc. and so on. On the other hand, the UK has a lot that the EU wants, including a healthier economy, and international links.
No. The UK does NOT really have anything to offer that is anywhere near equivalent to what the EU offers. A "healthier" economy? That's highly debatable, and not something that could just be 'offered to the EU' anyway.
Of course it can. If nothing else, it's a net contributor to the budget. You can try and build a trading block out of a small number of industrialised countries and a somewhat larger number of depressed agricultural ones, but the results aren't pretty. Losing the UK would be a major blow to the economy of the EU.
International links? You mean those financial links that are threatening to leave the UK?
No, nor do I mean those financial links that have come out publically in favour of leaving. I mean the majority, who don't play politics at all.
The Eurozone as a whole has far more international "links"; however you define them, whether its ports or banks; than the UK does and can do quite well without those added by the UK.
Well, you'd expect that, since the EU is so much larger. But oddly enough, there are a few measures where the UK does outperform the EU. Including international banking, insurance, and other financial services. I appreciate that may or may not be a good thing...
A break up would be bad for both. We can argue about who it would be worse for,
No we can't, it's already been quite well established by numerous studies and experts that the consequences for the UK would be far worse than those for the EU.
Cite please, where this has been 'established', rather than merely argued for. Perhaps one of the list you gave earlier?
but having one of the world's largest economies leave your club is not a good thing by any measure, and nor is declaring your most immediate geographic and economic neighbours impossible to work with.
The UK is willing to risk economic sabotage (mostly of itself, but to some extent of the EU) for the sole (real) purpose to strengthen its negotiating position.
Is this a recent political action that has got your goat, or the combined efforts of several million people? I'll need some indication of what you're talking about if we're to discuss.
[Why should the UK be allowed to risk such economic damage to strengthen its position, but in the unlikely event that the UK were to *actually* leave the EU shouldn't choose to *not* risk economic damage by keeping the UK out of the single market unless it agrees to our demands?
Because doing so would damage the EU. The economic benefits of being in the EU trade block are very popular, the 'ever closer' political union is far less so, not least because it's seen as a threat to minority interests (such as individual countries). What kind of message would 'punishing' the UK send to others? Is the EU a political union, or a way for Brussels to bully individual members for the sake of a consensus? You'd be setting back the cause of European integration by 30 years or so. And even that is assuming that individual member states would be so annoyed with the UK that they'd want to damage their own economies just to hurt them. That doesn't sound remotely plausible to me.
The damage would already have been done, after all. Once the UK leaves, it has no ability to further damage the EU; so the EU would risk nothing by playing hardball. The UK will want access to the single market in order to maintain its economic position. Naturally, the EU will make demands of the UK in return.
Of course, but as we've already established, the demands in a trade pact are economic, and wouldn't include immigration and devolution of political power.
They're leaving for tax reasons, because most of their business is in the Far East and is growing faster, and because HQ functions employ a lot of admin staff who are much cheaper over there. It doesn't have anything to do with recent politics, or the EU.
If you believe that, then I have a bridge to sell you.
I know too many people who work there, I'm afraid. I'm happy to listen if you have a specific source, but otherwise I'm just not convinced.
It's really not. They considered leaving when the EERM broke down, when the UK didn't adopt the Euro, when the EBA was founded, and a few other times besides. The problem is that all the expertise, and all their colleagues, are in London, not Frankfurt.
You don't really know much about Frankfurt's position in the financial industry, do you?![]()
I think I know more about Frankfurt's position than you do. Feel free to convince me otherwise.
There have been any number of predictions of banks all moving to Frankfurt, but they can't. The staff don't want to go. Those who do go are desperate to return. Even the EBA in increasing it's presence in London. London is a global financial centre, Frankfurt isn't.
Anybody who says Frankfurt is not a global financial centre doesn't know what the term means. Frankfurt is consistently listed in the top 10 of global financial centers.
And London is in the top 3, and by some measures in the top 1.
It gains a fair amount actually. Free trade is mutually beneficial, it's not a favour you grant to people you like.
Normally that is true. The EU however, stands to lose a great deal by allowing the UK to simply leave without serious consequences. It sets a bad precedent, and whatever you think about the EU, it isn't quite that stupid.
Getting into the habit of punishing countries who don't toe the line would be setting an even worse precedent.
I feel you're undermining your previous argument, which I find a little disappointing. If your analysis relies on the EU spending money, and damaging it's own economy, in order to punish departing countries, then I simply don't think it's accurate. It also strongly suggests that your previous points about the economic cost of departure are based on a fantasy of a vengeful EU smashing countries that annoy it, which I think is doing your sources a disservice.
[The EU would absolutely use any such market access negotiations as a way to demonstrate there are serious consequences to breaking with the EU. It simply can't afford not to.
So.. the UK departing would be both insignificant and irrelevant for the EU, and push it to desperate and unprecedented action?
No, that's not a fair way to describe the trading relationship.
Just because you don't like the term, doesn't mean it isn't accurate.
No, but the fact that you find it emotionally satisfying to describe it in terms of a psychopath-captive relationship doesn't make it accurate either. Norway doesn't follow the same economic policies as the EU, it's business cycle doesn't move in the same pattern as the EU, it's doing rather better than the EU. For a tiny country on the edge of a massive trade block, it does rather well following a set of social and economic policies that are quite different from the EU's. Yes it has to obey trade laws and important/export regs, but that's true of any trading relationship, and despite your constant attempts to conflate them, isn't what the right-wing groups and exit agitators are concerned with.
*Within* the EU it can serve as a balance against Germany and France and exert a great deal of influence.
Which works as a argument only so long as it does have influence. If it can't, in fact, change how things are done it has more say outside the EU than in. So the argument on influence only works if the UK can be seen to be altering EU policy. Which is exactly why the UK has been quite such an annoying country for the EU to deal with.