Over the last few months (if not years!) there has been much talk about the European Union (EU), what it does for the UK and whether we could possibly leave and retain our business competitiveness.  These are all very difficult questions to answer, and depending upon who you talk to you will get a large variations of answers. So who is right?

While the UK is constantly battling to retain various decisions making rights, control over our economy and various other areas of society, the truth is that we have already given away much of our independence.  We have seen a raft of strange regulation changes introduced into the UK over the last 10 years, and while not made public knowledge, many of these were as a result of rulings by the EU parliament.  It may be a little unfair to say that all of their decisions are strange, although the press do seem to concentrate on the more obscure moves.

Would the UK economy survive outside of the EU?

The UK is one of the most competitive countries in the world, with a vast import and export industry shipping to all parts of the globe.  While being part of the EU has brought much business and opened up new markets, there is a downside in the billions of pounds in subsidies we pay every year to balance the EU books.  There is also the situation whereby certain markets, such as agriculture, are heavily subsidised by the EU, creating what is in effect a false market which prices often artificially high.

To leave the EU would be a massive decisions for the UK authorities because the EU market is vast and growing every year.  As Europe continues to become closer and closer, with speculation of  a Federal Europe in time, it may be better to be inside that Union rather than outside – where taxes and other restrictions may limit “outside” participation, much like the situation in the US.

While the UK would save billions of pounds a year in payments to the EU budget, the long term implications are a little harder to read.  On balance it may be better to be part of the European Marketing going forward, than to try and push back in at a future date.