The European Union:The European Union:

A EUROREALIST VIEWA EUROREALIST VIEW

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What is the EU?What is the EU?• The EU was founded in 1957 under the Treaty of The EU was founded in 1957 under the Treaty of

Rome by France, Germany, Italy and the Benelux Rome by France, Germany, Italy and the Benelux nations. nations.

• The aims:The aims:– Prevention of future war.Prevention of future war.– Creating ‘an ever closer union between the Creating ‘an ever closer union between the

peoples of Europe’.peoples of Europe’.– Encouraging economic co-operation and Encouraging economic co-operation and

development. development.

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The EU todayThe EU today: : 27 members, 501m citizens27 members, 501m citizens-The most recent members (Romania and Bulgaria) -The most recent members (Romania and Bulgaria)

joined in January 2007joined in January 2007

Why Should We Care About the Why Should We Care About the EU?EU?

• Approximately half of our laws now originate in Approximately half of our laws now originate in an unelected bureaucracy in Brussels!an unelected bureaucracy in Brussels!

• Being a member of the EU costs us money. The Being a member of the EU costs us money. The UK contributed £9.2bn in 2010.UK contributed £9.2bn in 2010.

• Only 29% of UK citizens think membership of Only 29% of UK citizens think membership of the EU is ‘a good thing’. the EU is ‘a good thing’.

• It is such a politically sensitive issue that none It is such a politically sensitive issue that none of the major political parties want to talk about of the major political parties want to talk about it.it.

The Widening and Deepening The Widening and Deepening of European Integrationof European Integration

• The EU has expanded from 6 to 27 The EU has expanded from 6 to 27 members.members.

• EU ‘competences’ now include many areas EU ‘competences’ now include many areas of policy traditionally reserved for nation of policy traditionally reserved for nation states, e.g.states, e.g.– Single currency Single currency – The ‘Social Charter’The ‘Social Charter’– Border control Border control

Why We Should be ConcernedWhy We Should be Concerned

1.1. The EU is undemocratic.The EU is undemocratic.2.2. The EU threatens national sovereignty.The EU threatens national sovereignty.3.3. The EU is corrupt and unaccountable.The EU is corrupt and unaccountable.4.4. The EU is crippling the UK economy and The EU is crippling the UK economy and

business with red-tape and protectionism.business with red-tape and protectionism.5.5. The EU is keeping the developing world in The EU is keeping the developing world in

poverty.poverty.

1. The EU is Undemocratic1. The EU is UndemocraticEuropean CommissionEuropean Commission

UnelectedUnelected bureaucracy, but holds a monopoly bureaucracy, but holds a monopoly on proposing new law. on proposing new law.

European ParliamentEuropean Parliament Traffics legislation at break-neck Traffics legislation at break-neck

speed and can speed and can onlyonly accept, accept, reject or propose amendmentsreject or propose amendments

to legislation. to legislation.

Council of MinistersCouncil of MinistersMeets in Meets in secretsecret to to

accept/reject accept/reject amendments, largely by amendments, largely by

QMV. QMV.

2. The EU Threatens Sovereignty2. The EU Threatens Sovereignty• The EU has imposed more laws on us than The EU has imposed more laws on us than

parliament has in 700 years:parliament has in 700 years:– c.33000 Pieces of legislation adopted up to the c.33000 Pieces of legislation adopted up to the

end of 2010end of 2010

• QMV means the UK can vote against a proposal, yet QMV means the UK can vote against a proposal, yet still have to enact it.still have to enact it.

• EU law now trumps UK law.EU law now trumps UK law.

The EU ConstitutionThe EU Constitution• The EU drafted a Constitutional Treaty in 2002, which was The EU drafted a Constitutional Treaty in 2002, which was

finalised and signed by representatives of the member finalised and signed by representatives of the member states in 2004.states in 2004.

• The Constitution was supposed to combine existing The Constitution was supposed to combine existing Treaties to clarify what the EU’s responsibilities were.Treaties to clarify what the EU’s responsibilities were.

• But it was actually a further step in eroding sovereignty:But it was actually a further step in eroding sovereignty:– The EU would derive its powers from its own The EU would derive its powers from its own

constitution, not its Member States.constitution, not its Member States.– EU given a ‘legal personality’EU given a ‘legal personality’– No limits were set on the EU’s powers No limits were set on the EU’s powers – QMV to become the norm of EU decision-making with QMV to become the norm of EU decision-making with

national vetoes on 63 issues lostnational vetoes on 63 issues lost

The “reformed” EU ConstitutionThe “reformed” EU Constitution• France and the Netherlands both rejected the EU France and the Netherlands both rejected the EU

Constitution in referendums in June 2005.Constitution in referendums in June 2005.

• The response of the Constitution’s author : The response of the Constitution’s author : ““Let’s be clear about this. The Let’s be clear about this. The rejection of the Constitution was rejection of the Constitution was a mistake that will have to be a mistake that will have to be corrected.” corrected.” - Valery Giscard d’Estaing- Valery Giscard d’Estaing

• The Constitutional project was resurrected under The Constitutional project was resurrected under the guise of the Lisbon Treatythe guise of the Lisbon Treaty

• It It replacedreplaced the Constitution (but 96% of its content the Constitution (but 96% of its content was the same as the Constitutional Treaty)was the same as the Constitutional Treaty)

The Lisbon TreatyThe Lisbon Treaty‘‘We are united in our aim of placing the EU on a We are united in our aim of placing the EU on a renewed common basis before EP elections in 2009’renewed common basis before EP elections in 2009’- Berlin Declaration, March 2007- Berlin Declaration, March 2007

• The Lisbon Treaty was signed in December 2007.The Lisbon Treaty was signed in December 2007.• However, Ireland rejected it in a referendum in June 2008 However, Ireland rejected it in a referendum in June 2008 • Following controversial negotiations, Ireland voted ‘Yes’ in a Following controversial negotiations, Ireland voted ‘Yes’ in a

second vote in October 2009. second vote in October 2009. • The euro-sceptic Czech Republic President, Vaclav Klaus, The euro-sceptic Czech Republic President, Vaclav Klaus,

campaigned against the Treaty, but eventually signed it.campaigned against the Treaty, but eventually signed it.• The Treaty came into force in December 2009The Treaty came into force in December 2009

The Lisbon TreatyThe Lisbon Treaty• What’s included:What’s included:

– Institutional changes:Institutional changes:• Removal of the pillar structureRemoval of the pillar structure• Co-decision Co-decision ordinary legislative procedure (slightly greater role for ordinary legislative procedure (slightly greater role for

the EP)the EP)• New mechanism for the enforcement of the subsidiarity principleNew mechanism for the enforcement of the subsidiarity principle• Extension of QMV in Council of MinistersExtension of QMV in Council of Ministers• Formalisation of the European Council and its President Formalisation of the European Council and its President

– Democracy and RightsDemocracy and Rights• Citizens’ InitiativeCitizens’ Initiative• Withdrawal procedure Withdrawal procedure • Charter of Fundamental Rights becomes legally bindingCharter of Fundamental Rights becomes legally binding

– Europe as a global actorEurope as a global actor• Legal personalityLegal personality• High Representative of the Union for Foreign AffairsHigh Representative of the Union for Foreign Affairs• External Action ServiceExternal Action Service

High High Representative for Representative for

Foreign Affairs: Foreign Affairs: Baroness Baroness

Catherine AshtonCatherine Ashton

President of the President of the European Council: European Council:

Herman van Herman van RompuyRompuy

3.The EU is Corrupt and 3.The EU is Corrupt and Accountable to No-oneAccountable to No-one

• Limited lines of accountability between the EU and its Limited lines of accountability between the EU and its citizens. citizens.

• The EU’s own auditors have refused to sign off EU The EU’s own auditors have refused to sign off EU accounts for the last sixteen years!accounts for the last sixteen years!

• EU accounts show limited links between the billions EU accounts show limited links between the billions poured in and where the money actually goes.poured in and where the money actually goes.

• EU commissioners and civil servants have immunity EU commissioners and civil servants have immunity from prosecution for life within the EU.from prosecution for life within the EU.

Annual Increases in the EU BudgetAnnual Increases in the EU Budget

4.Crippling the Economy4.Crippling the Economy• The total gross cost to the UK of EU membership The total gross cost to the UK of EU membership

in 2008 was £65bnin 2008 was £65bn• £28bn on meeting EU regulations£28bn on meeting EU regulations• £17bn on additional food costs due to CAP£17bn on additional food costs due to CAP• £3.3bn lost due to CFP£3.3bn lost due to CFP• £14.6bn direct funding£14.6bn direct funding

• In 2010, the EU cost UK taxpayers around £300 In 2010, the EU cost UK taxpayers around £300 eacheach

• The UK’s defence spending is only £37bn pa!The UK’s defence spending is only £37bn pa!

• Without the costs of EU membership and Without the costs of EU membership and regulations, the UK could be £356bn richer regulations, the UK could be £356bn richer by 2018.by 2018.

The €uroThe €uro• The euro was launched in 1999. Notes and coins The euro was launched in 1999. Notes and coins

were introduced in 2002.were introduced in 2002.• There are 17 Member States in the Eurozone.There are 17 Member States in the Eurozone.• It was intended to make it easier to do business It was intended to make it easier to do business

across the EU.across the EU.• ‘‘One size fits all’ interest rate in the Eurozone is One size fits all’ interest rate in the Eurozone is

fitting no-one.fitting no-one.• 2010 Eurozone crisis - €273bn has been spent so 2010 Eurozone crisis - €273bn has been spent so

far bailing out Greece, Ireland and Portugal. far bailing out Greece, Ireland and Portugal. • Why risk entry?Why risk entry?

Crippling BusinessCrippling Business““EU legislation costs EU legislation costs

European business £405bn a year. There is European business £405bn a year. There is a view that the more regulations you have, a view that the more regulations you have, the more rules you have, the more Europe the more rules you have, the more Europe you have.”you have.” -Gunter Verheugen-Gunter Verheugen

• The total net cost of major EU regulations for UK business The total net cost of major EU regulations for UK business was was £88.3£88.3bn at the end of July 2010bn at the end of July 2010

• In a poll of 1000 chief executives, 54% said the costs of the In a poll of 1000 chief executives, 54% said the costs of the extra regulation outweighed the benefits of the Single extra regulation outweighed the benefits of the Single Market. Market.

• The costs to businesses are considered one of the main The costs to businesses are considered one of the main barriers to growth barriers to growth

• E.g. EU rules on safety standards for chemicals in 2010 had E.g. EU rules on safety standards for chemicals in 2010 had the potential to cause many companies to cease the potential to cause many companies to cease manufacturing as they were financially unable to comply.manufacturing as they were financially unable to comply.

ProtectionismProtectionism• The EU restricts free trade by imposing tariffs (a tax) The EU restricts free trade by imposing tariffs (a tax)

on imports to the EU. on imports to the EU. • It also subsidises EU producers e.g. through CAP.It also subsidises EU producers e.g. through CAP.• Certain EU members, notably France and Spain, Certain EU members, notably France and Spain,

openly flout the four economic freedomsopenly flout the four economic freedoms

• This is all against the principle This is all against the principle of the Single Market which the of the Single Market which the EU nominally aims to achieve.EU nominally aims to achieve.

Protectionism: the cost to the UKProtectionism: the cost to the UK• CAP costs the UK c.£10.3bn per year: £398 per CAP costs the UK c.£10.3bn per year: £398 per

household.household.• UK citizens face an extra £17bn on their food bills UK citizens face an extra £17bn on their food bills

because of the CAPbecause of the CAP• This hits the poorest in the UK the hardest.This hits the poorest in the UK the hardest.

5. The EU is keeping the developing 5. The EU is keeping the developing world poorworld poor

• Exports from developing Exports from developing countries are effectively blocked countries are effectively blocked off by EU tariffs and subsidies.off by EU tariffs and subsidies.

• Excess agricultural produce in Excess agricultural produce in the EU is often dumped in the EU is often dumped in Africa.Africa.

• E.g. Sugar – The EU has among E.g. Sugar – The EU has among the world’s highest sugar the world’s highest sugar production costs, yet it is the production costs, yet it is the world’s biggest producer of world’s biggest producer of white sugar. white sugar.

World white sugar World white sugar exports: percentage exports: percentage share of the market share of the market

(2001)(2001)

EnlargementEnlargement• On 1 May 2004, 10 new countries, mainly in Central and On 1 May 2004, 10 new countries, mainly in Central and

Eastern Europe, joined the EU. Eastern Europe, joined the EU. • Romania and Bulgaria joined on 1 January 2007.Romania and Bulgaria joined on 1 January 2007.• Yet the structure of the EU was built for 6, not 27, member Yet the structure of the EU was built for 6, not 27, member

states. It needs reforming. states. It needs reforming. • Average GDP per head in the 10 Member States that joined in Average GDP per head in the 10 Member States that joined in

2004 was just 52.9% of the EU-15.2004 was just 52.9% of the EU-15.• The ‘Copenhagen Criteria’ has been applied too loosely and The ‘Copenhagen Criteria’ has been applied too loosely and

was not met by Romania and Bulgaria prior to accession. was not met by Romania and Bulgaria prior to accession. Turkey is even further off.Turkey is even further off.

• Enlargement has raised many issues regarding immigration to Enlargement has raised many issues regarding immigration to the UK, the response to which has been chaotic.the UK, the response to which has been chaotic.

ImmigrationImmigration• Enlargement has resulted in huge migration: Enlargement has resulted in huge migration:

– Between 2004 and 2009, net migration from Eastern Between 2004 and 2009, net migration from Eastern Europe totalled 304,000Europe totalled 304,000

– Many came from Poland.Many came from Poland.– June 2007-08: 100,000 people migrated from Central June 2007-08: 100,000 people migrated from Central

and Eastern Europe to the UKand Eastern Europe to the UK– Numbers dropped during 2008, but increased again Numbers dropped during 2008, but increased again

from 2010from 2010• Migrants are more economically active than the domestic Migrants are more economically active than the domestic

workforce and have put c.£240m into the UK economy. workforce and have put c.£240m into the UK economy. • But social cohesion is a huge problemBut social cohesion is a huge problem..

Better off out?Better off out?• The EU should stop the tide The EU should stop the tide

of regulation and focus on of regulation and focus on where it can make real where it can make real changes: free trade and CAP changes: free trade and CAP reform.reform.

• The EU must return Member The EU must return Member States’ power to revoke States’ power to revoke legislation.legislation.

““The EU is making us poorer, The EU is making us poorer, less democratic and less less democratic and less free.” – Daniel Hannan MEPfree.” – Daniel Hannan MEP

““Europe should do less, but Europe should do less, but do it better!” – Jacques do it better!” – Jacques Delors, 1992Delors, 1992