44
Foreword by Professor Tim Congdon CBE
1. A Message from the Author
2. Summary of the Main Costs
3. Direct Costs 3.1 The Lisbon Treaty & the EU Budget 3.2 Suggested Reforms to the Budget 3.3 The UK Rebate & the Proposed Reduction 3.4 The UK’s Direct Contributions to the 2007-2013 Budget 3.5 Putting the UK Contribution in Perspective 3.6 Who Paid Most? Who Benefited Most? The Budget 2000-2006 3.7 Who Pays Most? Who Benefits Most? The Budget 2007-2009 3.8 The UK’s Direct Contributions to the Budget 1973-2009 3.9 Hidden Costs
4. Indirect Costs 4.1 The Common Agricultural Policy 4.2 The Common Fisheries Policy 4.3 Over-Regulation
5. Summary of the Annual Direct and Indirect Costs, Gross and Net 2010
6. UK Balance of Payments with EU and the World 1973-2009
7. Can Britain Afford the European Union? 7.1 Trade and Jobs 7.2 The EU, London and the UK Financial Sector 7.3 Shoring up the Euro 7.4 The example of Norway and Switzerland
8. Challenge to Government
9. References
10. Acknowledgements
11. Appendix Top 99 EU Directives
Contents
How much does membership of the European Union cost Britain?
GiventheattackonourwayoflifethattheEUnowrepresents,andgiventheobviousgravityofthethreattoourinstitutions,acarefulcost-benefitanalysishasbecomeessential.InhisstudyofHow Much Does the European Union Cost Britain?GerardBatten,theUKIndependenceParty’sMEPforLondon,setsoutsomekeyfacts.Asheexplains,thecostsarebothdirectandindirect.
Thedirectcostsareheavilyagainstourcountryandhavebeensofromthestart.AsBattenshows,theUKhasbeenanetcontributortotheEUBudgetin37ofthe38years(1973to2010inclusive)thatithasparticipatedintheso-called“Europeanconstruction”.Hearrivesatafigureofalmost£80billionofnetcontributionssince1973,butthisisaddingupthenumbersinthevaluesoftheirday.Ifthenumbersweretranslatedintothemoneyof2011,thetotalwouldundoubtedlybeover£200billion,equivalenttoaboutaquarterofournationaldebt.
SinceourmembershipoftheEUisbecomingincreasinglyunpopularandwefaceacrisisinourpublicfinances,ourpoliticiansoughtlogicallytocutbackourpaymentstootherEuropeancountries.Onthecontrary,becauseofconcessionsfoolishlymadebyPrimeMinisterTonyBlairin2005,ournetcontributionisabouttoincreasesharplytobetween£8billionand£9billionayear.
Butthedirectcostsareonlypartofthestory.Indeed,intermsoftheiradverseimpactonourstandardofliving,theindirectcostsarealmostcertainlymuchlarger.Wehavecompliancecostsinimplementingthethousandsofrulesandregulations,manyofthemdownrightsilly,forceduponusbytheEuropeanCommission.WearealsopoorerbecauseresourcesaremisallocatedorwastedasaresultoftheCommonAgriculturalPolicyandtheCommonFisheriesPolicy.
Finally,wearenowincurringarangeofcontingentliabilitiesbyjoininginfinancialrescuepackagesfortheweakermembersoftheEurozone,suchasIrelandandGreece.Weareincurringtheseliabilities,althoughwehavehadthegoodsensenottobelongtotheEurozoneandhavekeptourowncurrency.
ThereisnodoubtthatBritainispoorer,muchpoorer,becauseitbelongstotheEU.Wewouldbebetteroffout,as–onceagain–afullyindependentandsovereignnation.BattenemphasisesthattwoEuropeannationsoutsidetheEU–NorwayandSwitzerland–arenowricherthantheirneighbours.
Foreward by Professor Tim Congdon CBE
How much does membership of the European Union cost Britain? 3
Hecitesthefascinatingoutcomeofa2006cost-benefitanalysisinSwitzerland,whichshowedthatfullEUmembershipwouldhavesixtimesthecostofitsexistingtradingarrangementwiththeEU.NowonderaclearmajorityoftheSwisspeopleareagainstjoiningtheEU.
Everyonewithourcountry’sinterestsatheartmustendorseBatten’srecommendationthattheGovernmentcommissionanindependentcost-benefitanalysisofourEUmembership.Thepresentsituation–inwhichwegivemoneytoforeignerstomisgovernus–isintolerable.IcommendBatten’sanalysis:itisofthefirstimportanceanddeservesthewidestpossibleattention.
Professor Tim Congdon CBE26thMarch,2011
4 How much does membership of the European Union cost Britain?
Dear Reader,
Thisisthefourtheditionofthisstudysince2006.Thelasteditionwaspublishedin2008.Sincethenthesituationhasgrownmuchworse.TheLisbonTreatyhasbeenratified,theWestminsterpoliticalpartieshavingrattedontheirmanifestopromisesand‘castiron’guaranteestoholdareferendum.MoreandmorepowerhasbeentransferredtotheEUandthecashcontributionsandindirectcostshaveriseninexorably.
ItisnotpossibleformetoproduceadefinitivecostofEUmembershipandIdonotmaintainthatmyfindingsaredefinitive,butIbelievethattheyarethebestestimateatthistimebasedontheavailableinformation.
Mymethodologyissimple:toidentifythedirectandknownindirectcostsofEUmembershipandcombinethemtoarriveatatotalcost.Onethingwecanbereasonablysureofisthatthereareyetmorehiddencoststhatwearenotawareofandthattherealcostsareactuallymuchhigherthanmydeliberatelyconservativeestimates,butIwouldrathererronthesideofcautionthanbeaccusedofexaggeration.Ihaveonlyusedthosefiguresandestimateswhichareclearlyidentifiableandcomefromrespectedsources.
Acouplemorecommentsonmymethodology:inestimatingthecostsoftheCommonAgriculturalPolicy,theCommonFisheriesPolicyandEUOverRegulationfor2010IhaveusedtheGDPfigurefor2009asthiswasthelatestoneavailable;whenreferringtoGrosscoststhisisbeforetheUKRebateandourownmoneyspentintheUKbytheEU,andwhereIuseNetthisisaftertheUKrebateandourownmoneyspentintheUKbytheEU.
My position is very clear: if my findings are inaccurate then let the Government commission an independent cost-benefit analysis and prove me wrong. If Britain benefits from EU membership then let those that advocate it prove it.
In my view membership of the EU is an economic and democratic disaster and that the only solution for Britain is unconditional withdrawal.
Yourssincerely,
Gerard Batten MEPLondon
1. A message from the Author
How much does membership of the European Union cost Britain? 5
Thebulletpointsbelowhighlightthemainfindingsthathaveemergedfromthisstudy.TheypaintapictureofeverincreasingcostsofEUmembershipandaneverincreasingtradedeficitwithEUcountries.
• Britain’scontributionstotheEUBudgetarerisingby33% Gross,and anastonishing97% Net,forthebudgetperiod2007-2013comparedto 2000-2006.
• ForthecurrentBudgetperiod(2007-2013)Britainwillhavemade estimatedtotalcontributionsof£105.726 billion Grossor£42.026 billion Net (excludingtheUKrebateandEUspendingintheUK).
• Britain’sannualcontributiontotheEUBudgetfor2010isestimatedat £15.247 billion Grossor£6.883 billion Net.
• From1973to2010Britainwillhavemadetotalaccumulatedcontributions totheEUBudgetof£257.648 billion Gross or £77.851 billion Net.
• TheCommonAgriculturalPolicycostsBritainanestimated£16.7 billion perannum.
• TheCommonFisheriesPolicycostsBritainanestimatedminimum of£4.7 billionperannum.
• EUover-regulationonbusinesscostsBritainanestimated£48.7 billion perannum.
• From1973(theyearBritainjoinedtheEU)to2009theUKhasan accumulatedtradedeficitwithEUmemberstatesofover£438 billion.• TheestimatedamountlostinfraudfromtheEUbudgeteachyear (£6.3 billion)isabout92%oftheUK’scurrentNetcontribution (£6.8 billion).
• For2010theestimateofthecombinedannualdirectandindirectcosts ofEUmembershipwillamountto£85.3 billion Gross or £77 billion Net.
2. Summary of the Main Costs
6 How much does membership of the European Union cost Britain?
Thisequatesto: Gross Net £7.1 billion permonth £6.4 billion permonth £1.6 billion perweek £1.5 billion perweek £233.7 million perday £211 million perday £9.7 million perhour £8.8 million perhour £162,291 perminute £146,499 perminute
Thisistheequivalentforeveryman,womanandchildinBritainof£1,380 Gross or£1,246 Netperannum:orlookedatanotherway,theequivalentforeveryBritishtax-payerof£2,788 Gross or £2,516 Netperannum.
Inthistimeofeconomiccrisis,Governmentcut-backsinpublicspending,financialausterity,fearofjoblossesandfinancialhardshipformany,itisabsolutemadnesstobewastingbillionsofpoundseveryyearontheideologicalprojectofcreatingaUnitedStatesofEuropethatnoonewantsexceptanout-of-touchpoliticalelite.We might as well burn the money on a bonfire!
How much does membership of the European Union cost Britain? 7
3.1 The Lisbon Treaty & The ‘Union’ BudgetTheLisbonTreatyintroducesasinglelegalpersonalityfortheEuropeanUnionthatenablestheEUtoconcludeinternationalagreementsandjoininternationalorganisationsinitsownright.TheEUisthereforenowabletospeakandtakeactionasasinglelegalentity.1AsaresultofthischangeinthelegalstatusoftheEUitisthereforenowcalledtheEUBudgetasopposedtotheECBudgetasitwaspriortotheLisbonTreaty.ForsimplificationthisbookletreferstotheEUBudgetthroughout.
Deciding the Budget 2TheEuropeanCommission,ParliamentandCounciloftheEU(GovernmentMinisters)adoptaregulationforthemultiannualfinancialframework(MFF).3TheMFFdeterminestheamountsoftheannualceilingsoncommitmentappropriationsbycategoryofexpenditureandoftheannualceilingonpaymentappropriations.4
Theannualbudgetaryprocedurelastsfromthe1st September to the 31st Decembereachyear.AllEUinstitutionsandbodiesarerequiredtodrawuptheirestimateforthedraftbudgetaccordingtotheirowninternalproceduresbeforethe1st July.
TheCommissionusestheseestimatesandestablishestheannual‘draftbudget’whichisthensubmittedtotheCounciloftheEUandtheEuropeanParliamentby1st September.
TheCouncilthenadoptsitspositiononthedraftbudget,includinganyamendments,andpassesittotheEuropeanParliamentbefore1st October.TheCouncilinformstheParliamentofthereasonsbehinditsposition.
TheEuropeanParliamentthenhas42daystoeitheradoptthebudgetatfirstreadingorsubmititsamendmentsbacktotheCouncil.TheCouncilmayaccepttheamendmentswithinatimelimitof10daysandadoptthedraftbudget.
IftheCouncildoesnotaccepttheParliament’samendments,aConciliationCommitteeisorganised,composedofmembersoftheCouncilortheirrepresentativesandanequalnumberofmembersrepresentingtheEuropeanParliament.TheConciliationCommitteeisassignedtocomeupwithajointtextwithin21days.Iftheconciliatoryprocedurefails,theCommissionhastocomeupwithanewdraftbudget.
OnceajointtextisagreeduponbytheConciliationCommittee,inearlyNovember,theCouncilandtheParliamenthave14daystoapproveorrejectit.TheParliamentmayadoptthebudgeteveniftheCouncilrejects
3. Direct Costs
8 How much does membership of the European Union cost Britain?
thejointtext.IncasetheCouncilandtheParliamentbothrejectthejointdraftorfailtodecide,thebudgetisrejectedandtheCommissionhastosubmitanewdraftbudget.
If,atthebeginningofafinancialyear,thebudgethasnotyetbeendefinitivelyadopted,asumequivalenttonotmorethan1/12ofthebudgetappropriationsfortheprecedingfinancialyearmaybespenteachmonth.
Intheeventofexceptionalorunforeseencircumstances,theCommissionmayproposeduringtheyearthatthebudgetasadoptedbeamended;itdoesthisbysubmittingdraftamendingbudgets.Amendingbudgetsarealsousedtoenterthebalancefromthepreviousyearinthebudgetforthecurrentyear.
On15thDecember2010theEuropeanParliamentvotedtoaccepttheEUBudgetfor2011(UKIPMEPsvotedagainst),thefirstEUBudgetundertheLisbonTreatyprocedures.The2011Budgetgivesanincreaseof2.9% onthe2010budgetequallingtotalpaymentsof€126.5 billion.
TheEuropeanCommissionandtheParliamentwanteda6%risebuttheCouncilarguedfor2.9%andgotitsway.PrimeMinisterDavidCameronhaileditasa“huge achievement”thatBritain,FranceandGermanyhadinsistedthattheEU’sbudgetfortheperiod2014-2020shouldnotrisemorethantherateofinflation.SomemightwonderwhyinthemidstofaneconomiccrisiswhentheBritishGovernmentisbeingforcedtocutpublicexpenditureondefenceandvitalpublicservices,thatthereshouldbeanyriseatall.AsUKIPMEPMartaAndreasonputit,“He is trying to make a success story out of this, but frankly he should have been asking for a reduction in the EU budget”.
What is the money spent on?TheEUBudgetfor2011is£126.5 billion.TheEuropeanCourtofAuditorsestimatethatbetween2.5%and5%ofthebudgetissubjecttofraud.TalesofEUfraudarelegendaryandtoobigasubjectforinclusionhere.Butifweusethehigherfigureof5%thisequatesto£6.325 billionin2011andisequivalenttoabout92%oftheUK’sentirenetcontribution. It is fair to say then that most of the UK’s net contribution to the EU budget is probably being stolen by fraudsters.
ThepiechartoverleafshowswheretheEUbudgetisspent,andinwhatpercentage.
How much does membership of the European Union cost Britain? 9
EU Budget Spending Breakdown
How does the UK and other Member States pay into the EU Budget?ThebasicrulesonthesystemofownresourcesarelaiddowninaCouncilDecision(currently2007/436/EC, Euratom),adoptedbyunanimityintheCouncilandratifiedbyallMemberStates.
MemberStates’grosscontributionstotheEUBudgetaremadeupofthreeelements:
• TraditionalOwnResources(TOR);• ValueAddedTax(VAT);• AproportionofGrossNationalIncome(GNI)
Thesedifferentrevenuesourcesareusedinasequentialway:firstTOR,secondlyVAT,andthirdlyGNI.TheresidualGNIcontributionoffsetsthedifferencebetweenthetotalexpenditureandtheotherrevenue.Inpracticetheseelementswillvaryyeartoyearinthepercentagetheycontributebuttheymustalwaysadduptotheagreedbudget.
ThetotalamountofownresourcesforthewholeEUBudgetcannotexceed1.23%ofthegrossnationalincome(GNI)oftheEU5.
10 How much does membership of the European Union cost Britain?
AidtoEUMemberStates45.5%
AgricultureandtheEnvironment41.3%
CitizenshipandJustice1.3%
ForeignPolicyandAid6.2%
Administration5.7%
45.5%
41.3%
6.2%
5.7%1.3%
Traditional Own Resources (TOR)TheseconsistofcustomsdutiesandsugarleviesandarecollectedbyMemberStatesonbehalfoftheEU.TheyareviewedbytheEUasthepropertyoftheEU.MemberStatesareallowedtokeep25%ascompensationfortheircollectioncosts.
In2010,TORaccountsforapproximately12%oftotalEUrevenue.PaymentsaremadeintoEUNo1AccountwhichistheCommission’saccountintheUK.Thebankdoesnotpayinterestonthisaccount.PaymentmustbemadebytheMemberStateonthefirstworkingdayafterthe19thofeachmonthandoccurtwomonthsinarrears.PaymentsarebasedontheMemberState’sactualcollectionofthedutiesandleviesconcerned.
VAT and Gross National Income (GNI) Based Resources:TheadoptedEUBudget,oranysubsequentamendingbudget,indicatesthetotalVATandGNIbasedcontributions(andtheUKRebate)foreachyear.
The‘ownresource’basedonVATisleviedonMemberStates’VATbases,whichareharmonisedforthispurposeinaccordancewithCommunityrules.Thesamepercentage(0.30%)isleviedontheharmonisedbaseofeachMemberState;however,thisrateisreducedfor4MemberStatesfortheperiod2007-2013(Austria0.225%,Germany0.15%,theNetherlandsandSweden0.10%).
TheVATbasetotakeintoaccountiscappedat50%ofeachMemberState’sGNI.ThisruleisintendedtoavoidthelessprosperousMemberStatespayingoutofproportiontotheircapacity,sinceconsumptionandhenceVATtendtoaccountforahigherpercentageofacountry’snationalincomeatrelativelylowerlevelsofprosperity.
TheEuropeanCommissionsendsamonthlyletter-of-calltoeachMemberStaterequestingthecorrespondingfunds.Thetransfersaremadeonthefirstworkingdayofeachmonth.VATandGNIcontributionsaremadedirectlyfromHMG’sConsolidatedFund6intotheEUCommission’sbankaccountintheUK(ECBankAccountNo1).
Paymentsaremadein12ths,oraproportionthereof.RegulationsallowtheCommissiontocallupadditionalVATandGNIbasedcontributions,uptotwoadditional12thsofeach,sothatinthefirstquarterupto5/12thsofeachelementmaybepaid.Thesepaymentsaremadeinaccordancewiths2(3)oftheECA (European Communities Act) 1972whichstatestheUK’sobligationstowardsfinancingtheEUBudget.
TheVAT-basedresourceaccountsforaround11%oftotalEUrevenue.
How much does membership of the European Union cost Britain? 11
TORandVATcontributionsmakeasmallandshrinkingshareoftheEUBudget.TheremainderofthecontributionsismadeoftransfersfromMemberStates’nationalbudgets.
HowmuchaMemberStateisexpectedtopaydependsuponthesizeofitseconomy.ThesamepercentagerateisleviedoneachMemberStates’GNI.Forthefinancialperiod2007-2013SwedenandtheNetherlandsaregrantedgrossreductionsintheirannualGNIpayments,similartotheBritishrebate.Thereductionsare€605millionfortheNetherlandsand€150millionforSwedenin2004prices.TheseamountsarefinancedbyallMemberStatesincludingthosetwobenefitingfromthem.
TheGNI-basedresourceaccountsforaround76%oftotalEUrevenue.
3.2 Suggested Reforms to the BudgetTheEuropeanCommissionisproposingsignificantchangestohowtheEU’sBudgetisfinanced.TheCommissionismakingsuchproposalsbecauseofthe“bitter debates about ‘net contributors’ and the complex concepts of rebates with the consequences of favouring instruments with geographically pre-allocated financial envelopes rather than those with the greatest EU added value.” 7TheCommissionthereforestatesthatitisputtingforwardtheoptionofreducingMemberStates’contributionsbyabolishingtheVAT-basedownresourceandprogressivelyintroducingoneorseveralnewownresourcesasareplacement.8
TheCommissionpublishedinOctober2010a‘non-exhaustive’listofpotentialoptionsforownresourcestobediscussedduringtheEUBudgetReview.
Thislistincludes:• Afinancialactivitiestax;• Afinancialtransactiontax;• EUrevenuesfromauctioningundertheEmissionsTradingSystem;• AnEUchargerelatedtoairtransport;• AnEUvalueaddedtax;• AnEUenergytax;and• AnEUcorporateincometax.
ItisemphasisedbytheEuropeanCommissionthatanyfutureblendofownresourceswouldbeareplacementnotanadditiontothefinancingofthebudget.
PointedlyfortheUK’srebatetheCommissionstatesinregardtocorrectionmechanisms(i.e.theUKRebate);“it is ultimately the composition of the expenditure and the reforms of the own resources system that will
12 How much does membership of the European Union cost Britain?
determine whether correction mechanisms are justified in the future.”9
ThisisaclearsignalthattheCommissionintendstoabolishtheUKrebate.
ThePresident of the European Commission, Manuel BarossohasvoicedtheideaofaEuropeantaxofsomekind,asdescribedabove,andtheissuingof‘Euro-bonds’.FromtheEU’spointofviewthecurrentfinancingsystemhastwomajordrawbacks:firstlythatmemberstatesoftenresistfurtherpayments(atleastthosewhoarenetcontributors)anddonottakeintoaccountthe‘addedvalue’ofexpendituresintheEUasawhole;andsecondlythattheEUhasevolvedfromamereunionofstatesandcitizensandadirectbondbetweencitizensandtheUnionisrequired.IntheEU’sviewanEUTaxwouldsolvebothproblems.10
TheintroductionofaEuro-taxwouldbringtoaheadthefundamentalcontradictionattheheartoftheEuropeanUnion:thatcontradictionisbetweenthosegovernmentsandpoliticiansthatcontinuetopretendthattheEUisnotaboutthecreationofaunifiedpoliticalstate,andthepeoplesofEUmemberstatesthatknowfullwellthatitispreciselyaboutthecreationofaUnitedStatesofEurope.Thiscontradictionmusteventuallybefacedandresolvedonewayortheother.
3.3 The UK Rebate & the Proposed ReductionTheUKRebateisaspecificmechanismforcorrectingthebudgetaryimbalanceoftheUnitedKingdom.Thismechanismisalsopartoftheownresourcessystem.
ThefamousBritishrebatewasestablishedbytheEuropeanCouncilatFontainebleauin1984asaresultofMrsThatcher’sinsistencethattheproportionoftheUKcontributionswasunfair.Thespecialsituationwascharacterisedbytwofactors:
• AsmallagriculturalsectorresultinginverylowCommunityagricultural spendingintheUK.• Alargecontributiontothefinancingofthebudgetbecauseofthelarge proportionofthecountry’sGNP(GrossNationalProduct)accountedfor bytheVATbase.
TheUKcorrectionmechanismwasintroducedin1985andalthoughthismechanismhasbeenmodifiedonseveraloccasionsduetothechangesinthesystemofEUbudgetfinancing,thebasicprinciplesremainedthesame.
TheRebatetakestheformofareductioninthecontributionbytheUKtothefinancingoftheEU.TherebateisdeductedfromtheUK’scontributionsandnotphysicallypaidtoBrusselsandlaterrefunded;howeverthisoccurswith
How much does membership of the European Union cost Britain? 13
ayearoverlap,i.e.therebateisdeductedfromtheUK’spaymentsayearinarrears;11e.g.therebatein2002relatestotheUKreceiptsandpaymentsfor2001.
JustbeforeChristmas2005,attheendoftheBritishPresidencyoftheEuropeanCouncil,thePrimeMinister,TonyBlairagreedanewEUbudgetfor2007-2013.AlthoughhewasundernoobligationtodosohesurrenderedalargeportionoftheBritishrebate.HemadetheconcessionsdespitefailingtogetanyagreementfromFranceoncuttingagriculturalsubsidies,proposinginsteadonlyanon-bindingreviewofEUspendingin2008.12CommonAgriculturalPolicyspendingistoremainataround43%ofthetotalbudgetuntil2013.ThemainbeneficiaryisFrance.
WhenaddressingameetingoftheEuropeanParliamenton20thDecember2005,atwhichtheauthorwaspresent,MrBlairjustifiedhissurrenderoftheUKRebateonthegroundsthatthenewEUbudgetwould,“transfer wealth from rich countries to poor countries”,andthatwewere,“investing in Eastern Europe”.HedidnotmentionifhethoughttheBritishpeopleknewthattheywerevotingtotransfertheirwealthorinvestinEasternEuropewhentheyvotedLabourintheGeneralElectionof2005.
BlairgaveupaconsiderablepercentageoftheUKrebateandthecosttotaxpayersiscappedat€10.5 billion,at2004prices.Thisequatesto£7.7 billion.13ThiswasconfirmedbytheChiefSecretaryoftheTreasury,AndyBurnhamMPon15thJanuary2008,“The cost of disapplying the rebate to non-agricultural spending in the accession countries...is capped at €10.5 billion...that is the consequence of enlargement”.Afteraphasinginperiodduring2009-2011theUKwill“participatefully”14inthefinancingofthecostofEUenlargement.
The2005CouncildecisionmeansthattheUK’scontributionstothenewmemberstatesarenotincludedinthecalculationoftheUKRebate;exceptforCAP,marketrelatedexpenditure,andthatpartoftheruraldevelopmentexpenditureoriginatingfromtheEuropeanAgriculturalGuidanceandGuaranteeFund(EAGF,GuaranteeSection).
This means that whilst UK contributions are increasing the rebate is decreasing, because any expenditure in new member states (of which there are now twelve) is not included in the calculations of the British rebate.
What this also means is that, in the event of further EU enlargement before 2013 (not including Bulgaria and Romania), by means of a complex formula the ceiling on the UK’s increased contributions of
14 How much does membership of the European Union cost Britain?
€10.5 billion will be raised: this means that more EU enlargement means even less rebate for the UK taxpayer. The rebate will continue to reduce over time.
TherearethreecandidatecountriesthatarecurrentlyinaccessionnegotiationstobecomemembersoftheEU.These are Croatia, Turkey and Iceland.In2009theCommissionrecommendedtoopenaccessionnegotiationwiththeFormerYugoslav Republic of MacedoniabuttheCouncilhasnotyettakenadecisiononthisrecommendation.
ThreefurthercountrieshaveappliedforEUmembership.TheseareMontenegro, Albania and Serbia.Finally,bothBosnia and Herzegovina (BiH) and Kosovoarepotentialcandidates.
ThecurrenttargettimetableforEUenlargementforcountrieswithcandidatestatusis:
• Croatia2012• Iceland2012• FormerYugoslavianRepublicofMacedonia2013+• Turkey(nodatedecided)15
AlsowaitinginthewingsforpotentialcandidatestatusareUkraine,BelarusandMoldova.As these countries join the UK rebate will reduce accordingly.
Proposed reduction of the UK rebate16InSeptember2010theEU’sBudgetCommissioner,JanuszLewandowski,statedthattherewasnolongeranyjustificationfortheUK’srebate.MrLewandowskideclaredthatUKincomeperheadhadgrownmarkedlysince1984whenthethenprimeminister,MargaretThatcher,negotiatedtherebate.TheBudgetCommissioneralsocitedareductionintheproportionofthebudgetspentontheCommonAgriculturalPolicy(CAP)whichin1984accountedfor71%oftheEUbudget,comparedtoapproximately42%in2010.
Itisthereforeevidentwhenthenegotiationscommenceregardingthenextbudgetperiodof2014-2020 theUKrebatewillbeakeytopic.
TheUKjustifiestherebateonthebasisthatwithoutittheUK’snetcontributionasapercentageofnationalincomewouldbetwice as big as France’s and 1.5 times bigger than Germany’s.ThisisattributedtoexpendituredistortionscausedbypoliciessuchastheCAP.TheUKRebateamountstoroughly66%ofthedifferencebetweenwhattheUKpaysinto
How much does membership of the European Union cost Britain? 15
thebudgetandwhatitgetsbackfromtheEU.Four other net contributors also get rebates: Germany, Netherlands, Austria and Sweden.
Thecostofthisdecisionisstark.In2009Rebatereduction(agreedbyTonyBlair)costtheUK£286 million,in2010thecostwas£1.2 billion,andin2011itwillriseto£1.98 billion.ThetotalcostthereforetotheUKfortheperiod172009-2011willbe£3.466 billion.Andthefuturecostwillbe£2 billion per annum–overthebudgetperiodtakingusclosetothe£7.7 billionrebatesurrenderedbyTonyBlair,forthecurrentbudgetperiod.
3.4 The UK’s Direct Contributions to the 2007-2013 BudgetInthelasteditionofthisbookletin2008weusedthefiguresgivenbyHMGovernmenttoLordLawsonofBlaby,inFebruary2006,inreplytoaquestionintheHouseofLordsaspublishedinHansard,toshowthegrossandnetcontributionstotheEUbudgetperiod2007to2013.ThefiguresinTable1belowarenowbasedonactualGovernmentfiguresfor2007-2009andGovernmentestimatesfor2010-2013.
TheEUpublishesitsactualbudgetfiguresonacalendaryearbasisbuttheUKGovernmentusesafinancialyearbasis(ApriltoMarch).ThismeansthatintheinterestsofuniformityandcoherencewehavehadtorecalculatetheGovernment’sfiguresonacalendaryearbasis.
Table 1.
The UK’s Estimated Direct Contributions to the 2007-2013 EU Budget.Figuresshowninbillions UK EUCalendar Gross Spending UK Net Year Contributions in UK Rebate Contributions
2007Actuals £13.060 £5.325 £3.523 £4.2132008Actuals £13.334 £5.736 £4.862 £2.7362009Actuals £14.779 £5.467 £5.392 £3.9202010Estimates £15.247 £4.935 £3.429 £6.8832011Estimates £15.717 £4.832 £2.786 £8.0992012Estimates £16.204 £4.966 £3.371 £7.8672013Estimates £17.385 £5.169 £3.907 £8.309
Estimated Total £105.726 £36.430 £27.270 £42.026
Note:Figures2007to2009takenfromPinkBook,figures2010to2013takenfrom
HMTreasury.Figuresroundedupordownasappropriate.
16 How much does membership of the European Union cost Britain?
Theseestimatedfiguresshowastarkriseoverthecontributionsmadeduring2000-2006budgetperiod.ThisisbecausethethenPrimeMinister,TonyBlair,surrenderedpartoftheUKRebatein2005,andthecurrentPrimeMinister,DavidCameron,agreedanincreasetotheUKcontributiontotheEUbudgetin2010.
ThefiguresforBritain’scontributiontotheEUbudgetfor2000-2006were:Gross £79.486 billion and Net £21.303 billion.BasedontheGovernment’sfiguresfor2007-2013,incomparisonto2000-2006wewillseepercentagerisesasfollows:
• Gross = 33% (Gross=totalcontributiontoEUBudget).• Net = 97.27% (Net=TotalcontributionminustheUKRebate).
A97%riseinthenetcontributionsistrulyastonishinginthecurrenteconomicclimate.TheCoalitionGovernmentinheritedamassivenationaldebtandweareborrowingmoremoneywecan’taffordinordertopayittotheEU.
Abriefwordofexplanationregardingthe‘EUSpendingintheUK’:thisisourownmoneyspentinourowncountrybytheEU(andusuallyusedtopublicisetheEU’sbenevolenceatthesametime)andthereforeIhaveleftthisintheGrosscostsestimates.
ThesespectacularrisescanbeattributedtotheEU’sneverendingambitiontoincreaseitsbudgetandthe‘negotiatingtriumphs’oftheLabourandCoalitiongovernmentsinsurrenderingtheUKrebateandagreeingtobudgetincreases.
How much does membership of the European Union cost Britain? 17
3.5 Putting the UK Contribution in PerspectiveFiguresinbillionsofpoundsaredifficulttorelatetoeverydaylife.InordertoillustratewhatourcontributionsmeanintermsofrealandunderstandableamountsofmoneyTable2belowshowstheannualgrossandnetfiguresbrokendownintoamountsperyear,month,week,day,hourandminuteforthewholebudgetperiod2007-2013
Table 2.
Note:Figureshavebeenroundedupordownasappropriate.
Thesefiguresshowthatin2010wewerecontributinganestimated£41.8 million per day Gross,andanestimated£18.9 million per day Net.Bytheendofthecurrentbudgetperiod(2013)theUKwillbepayinganestimated£47.6 billion Gross,or£22.8 billion Net,perday.Thesepaymentswillcontinuetoriseinexorablyinthefuture.
Annual Month Week Day Hour MinuteActual 2007 Gross £13bn £1.1bn £251.2m £35.8m £1.5m £24,848Net £4.2bn £351m £81m £11.5m £480,936 £8,016
Actual 2008 Gross £13.3bn £1.11bn £256.4m £36.5m £1.5m £25,369Net £2.7bn £228m £52.6m £7.5m £312,329 £5,205
Actual 2009 Gross £14.8bn £1.232bn £284.2m £40.5m £1.7m £28,118Net £3.9bn £326.7m £75.4m £10.7m £447,863 £7,458
Estimated 2010 Gross £15.2 bn £1.3 bn £293.2 m £41.8 m £1.7 m £29,009Net £6.9 bn £573.5 m £132.4 m £18.9 m £785,674 £13,095
Estimated 2011 Gross £15.7bn £1.3bn £302.2m £43.1m £1.8m £29,902Net £8.1bn £674.9m £155.7m £22.2m £924,515 £15,409
Estimated 2012 Gross £16.2bn £1.4bn £311.6m £44.4m £1.8m £30,829Net £7.9bn £655.6m £151.3m £21.6m £898,031 £14,967
Estimated 2013 Gross £17.4bn £1.4bn £334.9m £47.6m £2m £33,076Net £8.3bn £692.4m £159.8m £22.8m £948,545 £15,809
18 How much does membership of the European Union cost Britain?
3.6 Who Paid Most? Who Benefited Most? The Budget 2000-2006 Table3belowshowsthegrosscontributionspermemberstate,EUexpenditureineachmemberstate,andthenetcontributionspermemberstateforthebudgetperiod2000-2006.AscanclearlybeseenGermanyisthebiggestnetcontributor,withBritaininsecondplaceevenaftertherebate.
Table 3. Who pays most: Budget 2000-2006
2000-2006 2000-2006 2000-2006 Total Gross Total EU Expenditure Total Net Contributions in Member State Contributions
Germany € 139.15 Spain € 99.51 Germany € 60.09France € 107.79 France € 89.63 UK(afterrebate)€ 27.80Italy € 86.49 Germany € 79.07 Netherlands € 23.85UK(afterrebate)€ 77.95* Italy € 70.22 France € 18.16Spain € 54.68 UK € 50.15 Italy € 16.27Netherlands € 37.75 Greece € 39.03 Sweden € 8.03Belgium € 25.45 Belgium € 33.41 Austria € 3.16Sweden € 17.59 Portugal € 26.70 Denmark € 2.45Austria € 14.33 Ireland € 17.99 Finland € 0.48Denmark € 13.05 Netherlands € 13.89 Cyprus -€ 0.25Greece € 10.93 Poland € 13.85 Malta -€ 0.27Finland € 9.45 Austria € 11.17 Slovenia -€ 0.55Portugal € 9.24 Denmark € 10.60 Estonia -€ 0.66Ireland € 8.61 Sweden € 9.56 Latvia -€ 0.94Poland € 6.08 Finland € 8.97 Slovakia -€ 1.07Czech Rep € 2.59 Luxembourg € 7.23 Czech Rep -€ 1.31Hungary € 2.15 Hungary € 4.59 Bulgaria -€ 1.51Luxembourg € 1.51 Czech Rep € 3.90 Lithuania -€ 1.92Slovakia € 0.98 Romania € 2.85 Hungary -€ 2.44Slovenia € 0.72 Lithuania € 2.48 Romania -€ 2.85Lithuania € 0.56 Slovakia € 2.05 Luxembourg -€ 5.72Cyprus € 0.40 Bulgaria € 1.51 Poland -€ 7.76Latvia € 0.35 Latvia € 1.30 Belgium -€ 7.95Estonia € 0.29 Slovenia € 1.27 Ireland -€ 9.38Malta € 0.13 Estonia € 0.95 Portugal -€ 17.46Bulgaria € 0.00 Cyprus € 0.65 Greece -€ 28.09Romania € 0.00 Malta € 0.40 Spain -€ 44.84 Totals €628.23 €602.91 € 25.32
*Note:ThefiguresareshownineurosinbillionsandaretakenfromtheEuropeanUnionofficialbudgetbreakdown.TherearedisparitiesbetweentheCommission’sfiguresandtheUKOfficeofNationalStatistics’figuresbecausetheCommission’sfiguresfortheUKgrosscontributiontothebudgetareaftertheUKRebatehasbeenappliedandtheONS’figuresforthegrosscontributionarebeforetheUKRebateisapplied;disparitiesmayalsobebecauseofvariationsinthedateandapplicationoftheprevailingexchangerate.
How much does membership of the European Union cost Britain? 19
Table 4. Net Beneficiaries to the EU Budget 2000-2006
ThistableisanotherwayoflookingatthelastcolumnofTable3.ItshowswhoreceivedthemostfromtheEUbudget.
2000-2006: Net Beneficiaries BillionsSpain € 44.84Greece €28.09Portugal €17.46Ireland €9.38Belgium €7.95Poland €7.76Luxembourg €5.72Romania €2.85Hungary €2.44Lithuania €1.92Bulgaria €1.51Czech Rep €1.31Slovakia €1.07Latvia €0.94Estonia €0.66Slovenia €0.55Malta €0.27Cyprus -€0.25Finland -€0.48Denmark -€2.45Austria -€3.16Sweden -€8.03Italy -€16.27France -€18.16Netherlands -€23.85UK(afterrebate) -€27.80Germany -€60.09
Note:FiguresshowninbillionsThistableshowsthelastcolumnofTable3andhighlightsthenetbeneficiariesoftheEUbudget(aftertheUKrebateandspendinginMemberStates).ThismayperhapsdemonstratewhysomecountriesaremoreenthusiasticaboutEUmembershipthanotherswhobearthefinancialburden.
20 How much does membership of the European Union cost Britain?
3.7 Who Pays Most? Who Benefits Most? The Budget 2007-2009TheEuropeanCommissionhasnotpublishedfiguresforthebudgetperiod2007-2013buttheyhavepublishedactualfiguresfortheyears2007-2009.Table5belowshowsthesefiguresandwhopaysthemostandwhobenefitsthemost.GermanyisthebiggestcontributorandPolandisthebiggestbeneficiary.Britainhasmoveddowntofourthbiggestcontributorandthishasbeenduetothefallofthepoundagainsttheeurooverthisperiod.
Table 5. 2007-2009 Member State Net Actual Contributions to the EU Budget
2007-2009: Net Contributions BillionsGermany €29.045France €13.856Italy €13.593UK(afterrebate) €12.685Netherlands €10.276Sweden €3.419Denmark €2.677Austria €1.536Finland €1.201Cyprus €0.120Malta -€0.067Slovenia -€0.267Ireland -€0.900Estonia -€0.965Latvia -€1.366Bulgaria -€1.498Slovakia -€1.691Lithuania -€3.046CzechRep -€3.174Luxembourg -€3.302Romania -€3.571Belgium -€3.751Hungary -€5.273Spain -€5.530Portugal -€7.182Greece -€14.605Poland -€15.264 Thetablecanalsobelookedatinreverse,whichbottomupshowswhogainedthemostfromtheEUbudget.
How much does membership of the European Union cost Britain? 21
3.8 The UK’s Direct Contributions to the Budget 1973-2010Thetablebelowshowsgrosscontributions,minuspublicsectorreceipts(theUK’sownmoneyspentbytheEUintheUK),andnegotiatedabatements(theUKrebate)toarriveatthenetcontributionstotheEUBudgetsinceBritainjoinedin1973upto2010.
Table 6. Figures shown in millions, totals in billions. NegotiatedCalendar Gross Public Abatements NetYear Contributions Sector Receipts & Refunds Contribution1973 £181 £79 0 £1021974 £179 £150 0 £291975 £341 £398 0-£571976 £463 £296 0 £1671977 £737 £368 0 £3691978 £1,348 £526 0 £8221979 £1,606 £659 0 £9471980 £1,767 £963 £98 £7061981 £2,174 £1,084 £693 £3971982 £2,862 £1,240 £1,019 £6031983 £2,976 £1,521 £807 £6481984 £3,201 £2,017 £528 £6561985 £3,925 £1,853 £227 £1,8451986 £4,493 £2,216 £1,701 £5761987 £5,202 £2,345 £1,153 £1,7041988 £5,120 £2,182 £1,595 £1,3431989 £5,587 £2,116 £1,156 £2,3151990 £6,355 £2,183 £1,697 £2,4751991 £5,807 £2,765 £2,497 £5451992 £6,738 £2,827 £1,881 £2,0301993 £7,985 £3,291 £2,539 £2,1551994 £7,189 £3,253 £1,726 £2,2101995 £8,889 £3,665 £1,207 £4,0171996 £9,109 £5,092 £2,412 £1,6051997 £8,268 £4,976 £1,733 £1,5591998 £10,265 £4,394 £1,377 £4,4941999 £10,524 £3,760 £3,171 £3,5932000 £10,719 £4,518 £2,084 £4,1172001 £9,557 £4,131 £4,560 £8662002 £10,097 £3,589 £3,099 £3,4092003 £11,485 £4,241 £3,560 £3,6842004 £11,505 £5,416 £3,592 £2,4972005 £13,098 £6,368 £3,655 £3,0752006 £13,025 £5,799 £3,570 £3,6562007 £13,060 £5,324 £3,523 £4,2132008 £13,334 £5,736 £4,862 £2,7362009 £14,779 £5,467 £5,392 £3,9202010(estimate) £13,698 £3,287 £2,587 £7,823
Totals in billions £257.648 £110.095 £ 69.701 £ 77.851Note:Figurestakenfrom1973to1996historicalsourcesandsince1997to2010theGovernmentPinkBookandthesemaybesubjecttoretrospectiverevision.
22 How much does membership of the European Union cost Britain?
Curiously the only year that Britain received more from the EU budget than it paid in (1975) was the one and only year that Britain held a referendum on EU membership, whether this was a coincidence or deliberate we cannot determine.
Bearinmindthatthe‘publicsectorreceipts’isourownmoneypaidtotheEUbudgetwhichisthenspentintheUK.Thisispresentedas‘EUmoney’andusedbytheEUforpropagandapurposestopromoteitself.
3.9 Hidden Costs Thelasteditionofthisbookletin2008containedasectionon‘HiddenCosts’.ItisknownthatamountsofmoniesadditionaltothebudgetcontributionsarepaidtotheEUtofundEUandEUrelatedprojects,e.g.theGalileoSatelliteSystemetc.AnestimatefortheseamountswasarrivedatusingthediscrepanciesbetweenthepublishedUKGovernmentcurrentaccountbalancewiththeEUinstitutionsandtheofficialtransactionswithEUinstitutions.
In2008weestimatedthediscrepancyas£3 billion per annum.Thecurrentdiscrepanciesareestimatedatanaverageof£3.258 billion per annum(2010).HoweverextractingdefinitiveinformationfromtheGovernmenttoidentitythesefundshasprovedimpossibleevenforsittingMPs,suchasAustinMitchellwhoaskedspecificquestionsonthisissue.
WhilewebelievethatadditionalsumsofmoneyarebeingpaidtotheEUintheregionofover£3billionperannumwecannotdefinitivelyidentifytheexactamountsandpurposes;thereforeforthiseditionwehavedecidedtoleavethisestimatedexpenditureoutofourfinalcalculations.Thisisasubjectthatneedstobereturnedtointhefuture.ItwillproveextremelydifficulttoidentifyeveryEUprojectthatwehelptofundoutsideofthebudgetcontributionsandtheamounts,butwecanbesureitisverysignificantamountsofmoney.
How much does membership of the European Union cost Britain? 23
4.1 The Common Agricultural Policy TheCommonAgriculturalPolicyhasbeenoneofthemostcontroversialandexpensiveofallEUpoliciessincetheEU’screation.Inefficientcontinentalfarmershavebeensubsidisedbythetaxpayerandtheconsumer.ThecostoftheCAPasaproportionoftheEUbudgetwasabout70%ofthetotalEUbudgetduringthe1980sbuthasnowfallentoaround41%;neverthelessitisthesecondbiggestitemofEUspending.
WhilewehavemovedawayfromtheworstdaysofwinelakesandbuttermountainstheCAPstillimposesunnecessarycostsontheconsumerbecauseofartificiallyhighfoodcosts:cheaperfoodcouldbeboughtontheworldmarket.TobefairthissituationisnotasbadasitwasbutcompletereformoftheCAPassoughtandpromisedbymanypoliticianshasprovedelusive.
Estimatesvarywidelyastotheactualcostontheconsumer,buttheeconomistIanMilne18usingdatafromOECD(OrganisationofEconomicCo-operationandDevelopment)estimatedthattheCAPcostBritainanythingbetween1.2% and1.7%ofGrossDomesticProductperannum.Intheabsenceofamorerecentorauthoritativemethodologywehaveusedthesameformula.Usingthelowestfigureof1.2%ofGDPthismeansthattheCAPiscostingBritishconsumersatleast£16.712 billion(seeTable7below)asper2009thelastyearforwhichGDPfiguresareavailable.
Table 7. UK GDP and estimated cost of CAP
UK GDP shown in trillionsCost of CAP shown in billions
Year UK GDP CAP at 1.2% CAP at 1.5% CAP at 1.7% of GDP of GDP of GDP2008 £1.445 £17.347 £21.684 £24.5752009 £1.392 £16.712 £20.891 £23.76
Note:UKGDPtakenfromTheBlueBook2010,OfficeofNationalStatistics
ThecostoftheCommonAgriculturalPolicyontheUKeconomycanthereforebeestimatedatabout£16.7 billionperannum.
4. Indirect Costs
24 How much does membership of the European Union cost Britain?
4.2 The Common Fisheries PolicyTheCommonFisheriesPolicy(CFP)didnotexistuntilBritainsoughttojointheEuropeanEconomicCommunityin1972.Britain’snegotiatingpositionwasweakandasaresultacynicalpriceforjoiningwasextractedintheformofgivingalltheotherEECcountriesaccesstoBritain’srichfishstocksinourterritorialwaters;19andaswenowknowtheConservativeGovernmentliedtotheHouseofCommonsaboutwhatthiswouldmeanforthefishingindustry.
TheCFPhascrippledBritain’sfishingindustryandresultedinthousandsofjobsbeingdestroyed.In1970therewere21,443fishermenintheUK.20By2009thatfigurehaddroppedto12,212;21adecreaseof43.05%.Arecentreportestimatesthatintotalover97,000jobshavebeenlost:9,000 in fishingand88,000 in dependent industriesonshore.22
TheobscenityofthequotasystemmeansthatthousandsoftonsoffisharethrownbackdeadintotheseabecausewhileitisunavoidabletocatchthemtheyarenotallowedtobelandedandsoldunderEURegulations.DespitedecadesofindustrycampaignersandpoliticiansdemandingreformithastakentheeffortsofaTVcelebritychef,HughFearnley-Whittingstall,andhispetitionofmorethansixhundredandfiftythousandnamestoelicitanylikelihoodofchangeinthepolicybytheCommission;howevertheywillnotimplementthisbefore2012andthismoveisstronglyopposedbySpainwhichhasplunderedBritishwatersfordecades.
TheMarineandFishingAuthorityconfirmedtotheauthorin2007thattheyhadnotcarriedoutanystudiesoftheCFPontheUKeconomy;andtheystatedthat“we cannot identify UK waters: they are now identified as being part of EC waters.”HMGovernmentdoesnotseemtohavethefoggiestnotionofwhattheCFPcostsBritainanddonotevenbothertoidentifyUKwatersinrelationtothestatisticstheydokeep:andwhyshouldtheywhentodosowouldonlyshowuptheinsanityoftheCFP.
ArrivingatafigureforthecostoftheCFPisthereforeextremelydifficult.However,thelatestfiguresavailablefor2009allowanestimatetobearrivedat.AccordingtotheMarineManagementOrganisationin2009UKvessels,includingtheChannelIslandsandtheIsleofManvessels,landedintheUKandabroad580,600 tonnesofseafish(includingshellfish)withavalueof£674.3 million.23
ThelatestfiguresforthetotalcatchfortheEUareonlyavailablefor2007whentheUK’spercentageofthattotalcatchwas12%.Usingthispercentagefor2009thetotalcatchfortheEUwouldbeapproximately4.838 tonnesatavalueof£5.619 billion.
How much does membership of the European Union cost Britain? 25
About70%ofthetotalEUcatchcomesfromwhatwereformerlyUKterritorialwatersbeforethecreationoftheCFP.Therefore,thetotalvalueoftheEUcatchof£5.619 billion,minus30%equals£3.933 billion.IfwethensubtracttheactualvalueoftheUKcatchof£674.3 millionweareleftwithafigureof£3.259 billion.
Intheabsenceofanyofficialfigures,thecosttoBritainoftheCFPpurelyinlostcatchaloneisatleast£3.259 billionperannum.
TheUKcouldbeself-sufficientinnon-exoticfishstocksbutisforcedtoimportfishtosatisfydemand,whichhasbeensteadilyrisingovertheyears.Toaddinjurytoinsultweareforcedtoimportfishcaughtinwhatwereourownterritorialwaters.TheTaxPayersAlliancereportThe Price of Fishputsthetotalcost,includinglostcatchandadditionalfoodcosts,atanestimated£4.7 billionperannum.24
ThereforewecanestimatetheminimumtotalcostoftheCFPtoBritainataminimumof£4.7 billionperannum.
Thesefiguresstilltakenoaccountofotherfactorssuchasthecostoftheadministrativeburden,on-goingdecommissioningschemes,unemploymentandsocialsecuritypaymentsandmuchmore,whichiftheywereknownwouldpushthecosthigherstill.
4.3 Over-RegulationAccordingtoastudyundertakenfortheGermanParliamentbyformerPresidentRomanHertzogin2006anestimated84%ofGermany’snewlawscomefromtheEuropeanUnion.25ItisreasonabletosupposethatasimilarfigureappliestotheUKintheabsenceofanystudiesprovingthecontrary.
TheEUnowregulatesbusinessofallkindsacrosseveryindustry.MostrecentlytheEuropeanParliamentvotedtoimplementsixnewdirectivesthatwillregulatetheUKfinancialservicessector.Thisregulationisoftenincompetentlydraftedandcarrieswithitcostsofover-regulationthatunderminescompetitiveness,increasescoststoconsumers,orsimplydestroysjobs.
ArrivingatadefinitivefigureforthecostofEUover-regulationonbusinessisextremelydifficult.ButanumberofpeoplehavetriedtoestimateitscostasapercentageofGDP(GrossDomesticProduct).InOctober2006,GuntherVerhuegen,EuropeanCommissionerforindustryandenterpriseestimatedthattheannualcostofEUregulationacrosstheEUwas5.5%ofGDP.In2004,PeterMandelsontoldtheConfederationofBritishIndustrythatthecostofregulationamountedto4%ofEurope’sGDP.In2004theDutchVicePrimeMinsterandFinanceMinister,GerritZalmstatedthatthe
26 How much does membership of the European Union cost Britain?
administrativeburdenonbusinessintheNetherlandswasestimatedat4%ofGDP.In2007CommissionerVerhuegenstatedthattheaveragefigureformemberstateswas3.5%ofGDP.
Inthe2008editionofthisbookletweassumedaconservativefigureof2%ofGDPwhichgaveacostof£28billionperannum.ThisfigurehasbeenmorethanvindicatedbythepublicationofthecostoftheTop99EUDirectivesbytheOpenEuropeThinkTank(see Appendix).Thisputthecost(usingtheGovernment’sownfigures)atover£20 billionperannum.Bearinmindthatthesefiguresarejustforthetop99directivesandthereareliterallythousandsthatimpactonbusiness.
WewillthereforeusetheCommission’sestimatedcosttotheUKeconomyastheaveragecosttoMemberStatesof3.5%ofGDP.
Table 8. UK GDP shown in Trillions
Cost of EU Regulations shown in Billions
Year UK GDP EU Regulation at 3.5% of GDP2008 £1.446 £50.62009 £1.393 £48.7
Note:ThelatestUKGDPfiguresavailablearefor2009,takenfromTheBlueBook,Office
ofNationalStatistics.
ThereforeweestimatetheannualcostofEUregulationontheUKascurrentlyabout£48.7 billionperannum.
Noonewouldseriouslysuggestthatindustryandbusinessshouldnotberegulated,butEUregulationappliesto100%ofbusinesswhereasonlyabout10%ofbusinessesexporttoEurope.TheybearanunnecessaryburdenthatcertainlywouldbesignificantlylighterifthelawsweremadeinBritainandnottheEU.
How much does membership of the European Union cost Britain? 27
Tables9&10belowshowthecombinedestimateddirectandindirectcosts,GrossandNetfor2010.
Table 9. Estimated Gross Direct Budget Contributions and Indirect Costs for 2010 2010Gross Contributions to EU Budget £15.2bnCommon Agricultural Policy £16.7bnCommon Fisheries Policy £4.7bnEU Regulation £48.7bnTotal £ 85.3 bnNote:figuresroundedupordownasappropriate
Table 10. Estimated Net Direct Budget Contributions and Indirect Costs for 2010
2010Net Contributions to EU Budget £6.9bnCommon Agricultural Policy £16.7bnCommon Fisheries Policy £4.7bnEU Regulation £48.7bn
Total £ 77.0 bnNote:figuresroundedupordownasappropriate
Table 11. Breakdown of Gross Contributions to the EU Budget and Indirect Costs for 2010 Annual Month Week Day Hour Minute£85.3bn £7.1bn £1.6bn £233.7m £9.7m £162,291Note:figuresroundedupordownasappropriate
Table 12. Breakdown of Net Contributions to the EU Budget and Indirect Costs of 2010
Annual Month Week Day Hour Minute£77bn £6.4bn £1.5bn £211m £8.8m £146,499Note:Figuresroundedupordownasappropriate
Table 13. Breakdown Gross & Net, Per Person, Per Taxpayer
Per Man, Woman Per Tax Payer & Child in the UK in the UKGross Costs 2010 £1,380 £2,788Net Costs 2010 £1,246 £2,516Note:UKPopulationin2010=61.8million.UKTaxpayersin2010=30.6millionFiguresfromtheOfficeofNationalStatistics.Figuresroundedupordownasappropriate
5. Summary of the Annual Direct and Indirect Costs, Gross & Net for 2010
2010 Gross
2010 Net
28 How much does membership of the European Union cost Britain?
WearetoldbythoseinfavourofEUmembershipthatitisessentialfortrade.ThereforeitwouldbeperfectlyreasonabletoexpectthatweshouldseeasteadyriseinthebalanceoftradebetweentheUKandEUMemberStates.ButifwelookatthebalanceoftradefiguresfortheperiodofUKmembershipoftheEUweseequiteadifferentpicture.Whatweseeisagrowingtradeimbalanceandsteadilyincreasingtradedeficit.DevicessuchastheCommonExternalTariff(taxesonimport)andtheCommonAgriculturalPolicy(subsidisingcontinentalfarmersattheexpenseoftheconsumer),andoverregulationonbusiness,havedistortedBritain’stradepatternspreventingusbuyingmorebeneficiallyontheworldmarket.
ItisimportanttounderstandthattheEUisnotaFreeTradeArea,itisaCustomsUnion.Afreetradeareaismeanttofacilitategreateaseoftradingbetweennations.Acustomsunion’sprimarypurposeistoimposecostsonimportsfromoutside.TheEUcustomsunionisarelicfromthe1950sandisinfacttheonlysurvivingcustomsunionintheworld,allothershavingbeenabandonedinfavouroffreetradearrangements.
SeeTable 14, UK Balance of Trade with EU Countries and the World, 1973-2009,overleafonpage30.
6. UK Balance of Payments with EU and the World 1973-2009
How much does membership of the European Union cost Britain? 29
30 How much does membership of the European Union cost Britain?
Table 14. UK Balance of Trade with EU Countries and the World, 1973-2009
Calendar Year Balance with EU Balance with non Balance with Countries in EU Countries in the World in Trade & Services Trade & Services Trade & Services
1973 -£1,674 £678 -£9961974 -£2,592 -£590 -£3,1821975 -£2,831 £1,308 -£1,5231976 -£2,536 £1,764 -£7721977 -£2,215 £2,268 £531978 -£2,920 £4,043 £1,1231979 -£2,995 £2,542 -£4531980 £815 £2,028 £2,8431981 £1,694 £5,054 £6,7481982 £813 £3,836 £4,6491983 £41 £3,488 £3,5291984 -£1,029 £2,511 £1,4821985 -£1,496 £3,734 £2,2381986 -£8,832 £7,968 -£8641987 -£12,889 £8,086 -£4,8031988 -£18,175 £1,700 -£16,4751989 -£20,811 -£1,587 -£22,3981990 -£18,393 -£353 -£18,7461991 -£5,793 -£2,161 -£7,9541992 -£11,823 £1,690 -£10,1331993 -£13,207 £2,451 -£10,7561994 -£12,523 £10,104 -£2,4191995 -£12,500 £9,608 -£2,8921996 -£5,485 £1,296 -£4,1891997 -£4,845 £5,349 £5041998 -£5,923 -£2,032 -£7,9551999 -£9,812 -£3,677 -£13,4892000 -£6,823 -£11,151 -£17,9742001 -£13,403 -£10,609 -£24,0122002 -£23,603 -£4,470 -£28,0732003 -£27,261 £1,266 -£25,9952004 -£30,340 -£2,146 -£32,4862005 -£37,372 -£5,475 -£42,8472006 -£29,616 -£11,921 -£41,5372007 -£35,235 -£7,721 -£42,9562008 -£28,582 -£9,178 -£37,7602009 -£27,957 -£4,066 -£32,023
Totals in billions -£ 438.128 £ 5.635 -£ 432.493
Note:Figuresshowninmillions,totalsinbillions.Figuresmaybesubjecttorevisionuptofouryearsret-rospectively.ThesefiguresaretakenfromtheOfficeofNationalStatisticsPinkBookpublishedin2010andshowthefiguresadjustedretrospectivelyfrom2004.
UK Balance of Payments with EU and the USA 1973-2009
Table15contraststhebalanceoftradefiguresbetweentheUKandEUmemberstatesandtheUKandtheUSAforthetenyearperiod1999to2009.
Table 15 Trade Balance with Trade Balance with EU Countries in Goods USA in Goods & Services 2009 & Services 2009 Year £million £million1999 -£9,812 £4,9982000 -£6,823 £6,7802001 -£13,403 £4,9572002 -£23,603 £11,9972003 -£27,261 £14,7862004 -£30,340 £16,7592005 -£37,372 £16,7022006 -£29,616 £19,0102007 -£35,235 £21,4332008 -£28,582 £25,3682009 -£27,957 £23,441
Total in billions -£ 270.004 £ 166.231
Note:Figuresshowninmillions,totalsinbillions.Figuresmaybesubjecttorevisionuptofouryearsretrospectively.ThesefiguresaretakenfromtheOfficeofNationalStatisticsPinkBookpublishedin2010andshowthefiguresadjustedretrospectivelyfrom2004.
Tables14and15clearlyshowtwothings:thattheUKisamassinganevergrowingtradedeficitwithotherEUmemberstates,andwehaveaneverdiminishingtradesurpluswiththerestoftheworld,andthatwehaveacomparativelyhealthybalanceoftradewiththeUSA.WhilewewanttradeandfriendshipwithEuropetheinescapableconclusionisthatournaturalandprofitabletradingpartnersaretheUSAandtheEnglishspeakingworld.
How much does membership of the European Union cost Britain? 31
7.1 Trade and JobsThemainargumentofthoseinfavourofcontinuedBritishmembershipoftheEUisthatwearedependentonitfortradeandjobs.Onesometimeshearsthecry,“but 50% of our trade is with the EU: if we left they wouldn’t trade with us!”Butisittrue?Firstofallin2008theproportionoftheUKeconomyinvolvedinexportinggoodsandservicesworldwidewasjustover22.2%.InthesameyearthesplitbetweenexportstotheEUandtherestoftheworldwasabout50/50.TheexactproportionoftheBritisheconomyexportingtotheEUwas11.1%:soabout77.8%oftheUKeconomyispurelydomestic,andwithhalfourexportsgoingtotheEUandtheotherhalftotherestoftheworld.
However100%oftheeconomyandbusinessaresubjectedtoEUregulationirrespectiveofwhethertheytradewiththeEUornot–andofcourseabout89%don’ttradewiththeEU.WecanseealsofromTable 14thatwehaveamassiveandincreasingtradedeficitwithEUcountries(theysellusfarmorethanwesellthem),andfromTable 15thatwehaveahealthytradesurpluswiththeUSA(wesellthemmorethantheysellus).
WereBritaintoleavetheEUtradewouldcontinuebecause:therulesthatgoverninternationaltradearesetbytheWorldTradeOrganisationandtheEUcouldnotarbitrarilysetuptradebarriersagainsttheUKevenifitwantedto;andsinceEUcountriessellfarmoregoodsandservicestoBritainthantheybuyfromustheyarenotgoingtocutofftheirnosestospitetheirfacesandstoptradingwithus.
Thereisoneotherfactortotakeintoaccount:dowereallyexport50%ofourgoodsandservicestotheEU?ThereissomethingcalledtheRotterdam-Antwerp Effectthatshowsotherwise.RotterdamintheNetherlandsandAntwerpinBelgiumaretwoofthebiggestportsintheworld,andtheyhandlesubstantialquantitiesofBritishexports.SomeoftheseareconsumedinHollandandBelgiumandsomeareshippedontootherEUcountries,whileothersaretransferredtoroadandrailorcargovesselsandareshippedtonon-EUcountriesandtoothercontinents.TheseexportsareclassedasgoingtotheEUbutmaynevertouchEUsoilandcanendupinChina,Japan,Singaporeandanywhereelse.
TheUKGovernmenthasnottriedtoquantifythisdistortionbutthethinktankGlobal Britainhasattemptedtheexercisewithdatafor2009.Theirfindingsarethatthedistortionisintheregionofatleast10%. This means that the actual level of exports to the EU is more likely to be about 40% of the total than 50% as currently asserted.26ThatleveloftradewouldofcoursesublimelycontinueifBritainlefttheEUforthereasonsstatedabove.
7. Can Britain Afford the European Union?
32 How much does membership of the European Union cost Britain?
Anothercrythatsometimesgoesupisthat“Three million jobs depend on the EU: if we left we’d lose them!”Thisisfalseforthesamereasonsasgivenabove.IfmillionsofBritishjobsdependontradewiththeEUlikewisemillionsofEuropeanjobsdependontradewiththeUK,sincetheysellusfarmorethanwesellthem(seeTable14).SomeyearsagoinadiscussionontheBBCradionewsprogrammeTheWorldatOne,EUCommissionerNeilKinnockadmittedtoUKIPLeaderNigelFaragethatwereBritaintoleavetheEUnotasinglejobinexportingwouldbelost.
7.2 The EU, London and the UK Financial SectorThefinancialservicessectoraccountsforabout10%ofUKGDP,27higherthantheUSAshareof7.5%andthatofJapanat6.7%.InFranceandGermanythefinancialservicesshareoftheeconomyislowerat4.6%and3.8%respectively.ProfessionalservicescloselyconnectedwiththefinancialservicessectorintheUKcontributeanother3.9%ofGDP.Sointotal,financialandrelatedprofessionalservicesaccountforalmost14%ofUKGDP;thiscomparesto12%formanufacturingindustry.Employmentinthefinancialsectoraccountsforabout1 million peopleoutofthe31millioninemploymentintheUK,including319,000inLondonand128,000intheSouthEast.Taxcontributionsin2008/2009fromthefinancialsectoramountedto£61 billion.
MuchoftheUKfinancialsectorissituatedintheCityofLondonandtheSquareMilealonecontributesnearly4%oftheUKGDP(£55.7 billion)andLondonasawhole19% (£264.6 billion)ofGDP.Therefore(whateverthecurrentcriticismsofsomeaspectsofthefinancialsectorandthefailureofregulationtocontrolitsworstelements)theUKfinancialsectorisavitalpartoftheUKeconomyandprovidessignificantandindispensableemploymentandtaxrevenue.
HoweverthisisnowbeingplacedinseriousdangerbytheEuropeanUnion.InOctober2010theEuropeanParliamentvotedintoexistencesixnewDirectivestoregulatethefinancemarketregulations.ThesewillincludeEUcontrolled:
• CreditRatingAgencies• EuropeanSystemicRiskBoard• EuropeanBankingAuthority• EuropeanSecuritiesandMarketsAuthority• EuropeanInsuranceandOccupationalPensionsAuthority• AlternativeInvestmentFundManagersDirective
Thislittlebookletdoesnotallowenoughspacetodiscusstheoriginsandcausesofthefinancialcrisisof2008,butProfessor Roland Vaubel of the
How much does membership of the European Union cost Britain? 33
University of Mannheimhassaidthatthebankingcrisiswasduetotwohugeerrors:that the banks erroneously thought that their provisions against risk were sufficient; and that the regulators erroneously thought that their regulations were sufficient.28ProfessorVaubelsuggestsathreepartremedytotheproblem:more transparency in financial markets – a task that can be left to national authorities; stronger precautions against risk, notably higher equity requirements – the task of Basel,29 not the EU; and lastly diversity of regulatory experiments so that best practice can be found and imitated.
WhatisnotrequiredistheraftofEUinspiredandcontrolledregulationandregulatoryauthoritiestobeintroducedunderthesixnewdirectives.WeseefromthestatisticsabovethatthefinancialsectorinEuropeancountriesisfarlessimportantasaproportionoftheireconomiesandaccountsforlessemploymentandtaxrevenuethatitdoesinBritain.HoweverunderQualifiedMajorityVotingthemajorityofhighlyregulatedcountries,e.g.France,willbeabletoimposetheirhigherlevelofregulationontheUKtherebyreducingourlevelofcompetitivenesstotheirs.IntheageofglobalcommunicationsthereisnoneedforfinancialinstitutionstoremaininLondoniftheyfeeltheyarebeinghamperedbyuncompetitiveEUregulationandtheycaneasilyrelocatesomewhereelseintheworld.
WhywouldanyoneimaginethattheEuropeanUnion,whichgavetheworldtheCommonAgriculturalPolicyandtheCommonFisheriesPolicyandcripplinglevelsofover-regulationonbusiness,doacompetentjobofregulatingthefinanceindustry?British voters should be aware that in the European Parliament only UKIP MEPs voted against this legislation and to protect the national interest.LabourandLib-DemMEPsvotedinfavour,whileConservativeMEPseithervotedinfavour,absentedthemselvesfromthechamber,orinthecaseofthreemuchvaunted‘Euro-sceptic’MEPsvotedtoabstain.ThesesixnewdirectivesrepresentagravethreattothefutureofthefinanceservicessectorforLondonandtheUK.Britaincannotaffordtolosethisvaluablesourceofincome.
7.3 Shoring up the EuroOn9thMay2010theLabourGovernmentrepresentedbytheChancelloroftheExchequer,AlistairDarlingMP,signeduptotheEuropeanStabilisationMechanism.TheaimoftheStabilisationMechanismisto“preserve financial stability in Europe”.30€60 billionhasbeenguaranteedbyall27MemberStatestobeavailabletothe13MemberStateswhoaremembersoftheEurozonewhorequirefinancialsupportbecausetheyareexperiencingdifficultiesorseriouslythreatenedwithseveredifficultiescausedbyexceptionalcircumstancesbeyondMemberStatescontrol.
TheUKisresponsiblefor12%ofthisfundwhichequatesto €7.2 billion,
34 How much does membership of the European Union cost Britain?
whichatcurrentexchangeratesisabout£6 billion.Thismoneyissupposedtobeintheformofloansthatifdrawnuponshouldeventuallybepaidbackwithinterest,butneverthelesstheindebtedBritishGovernmentisborrowingmoneytolendittocountriesthatwillnotfacerealityandleavetheEuro.GiventheextremelyprecariouseconomicsituationofcountriessuchasPortugal,Ireland,Spain,andGreece,whichfacepossiblefinancialcollapselargelybecauseoftheirmembershipoftheeuro,thisisanextremelydubiouspropositionthatwewillevergetthismoneyback.
OneoftheveryfewrightdecisionsmadebythelateandunlamentedLabourGovernmentwasnottojointheEuropeanSingleCurrency,butevensotheysaddleduswithanunnecessaryandunaffordablecommitmenttosupportthedoomedcurrencyexperiment.
7.4 The Example of Norway and SwitzerlandWeareallfamiliarwiththeEurophilemantrathatwemuststaymembersoftheEuropeanUniontopreservejobs,tradeandpeace.ButwhatofthoseEuropeancountriesthatarenotmembersoftheEU?TwonotableexamplesofdevelopedandsophisticatedEuropeannationsthathavenotfounditnecessarytojointheEUareNorwayandSwitzerland.
NorwayandSwitzerlandbothhavefreetradeagreementswiththeEU,NorwaythroughitsmembershipoftheEuropeanEconomicArea(EEA)andSwitzerlandthoughbilateralsectoralfreetradeagreements.NeithercountryhaseverbeenamemberoftheEuropeanUnion,31buttheydomakemodestfinancialcontributionstovariousEUprogrammes.
BothcountriesexportsignificantamountsofgoodsandservicestoEUMemberStates.NorwayhasheldvariousreferendumsonEUmembershipthroughtheyearsandthepopulationhasalwaysrejectedtheidea.In2006theSwissFederalGovernmentpublishedastudyonthevariousoptionsopentoitregardingEUmembershipandacostbenefitstudyofpotentialfullmembership.The study concluded that full EU membership would cost Switzerland up to six times more than its existing trading arrangements with the EU: not surprisingly they decided that joining was unnecessary and undesirable.
TheLisbonTreatyobligestheEUtonegotiatefreetradeagreementswithamemberstatethatwishestowithdraw,aswellaswithstatesthatarenotEUmembers.TheEUwillinfactsoonhavefreetradeagreementswith80%ofallnon-EUcountriesworldwide.ThereisnoneedforBritaintoremainamemberoftheEUinordertotradewiththeEUanymorethanthereisforNorwayandSwitzerland.
How much does membership of the European Union cost Britain? 35
TheideathatBritainmustremainamemberoftheEuropeanUnioninordertopreservetradeandjobs,orinthewiderinterestsofpreservingpeaceandprosperityinEuropehavewornprettythinoverthelastfourdecades;andithastobedoubtedthatanyonewhounderstandsthesituationseriouslybelievesit.
TheEuropeanUnionisanideologicalmissiontocreateaUnitedStatesofEurope.Itisfundamentallyanti-democraticandundemocraticinnature.Afterthirty-eightyearsofmembershipwehavereachedasituationwheremostofourlawsarenowmadeintheEU.Wecontributebillionseveryyearinmembershipfeeswecannotafford.TheEUimposeseverincreasingburdensonfarming,fishingandindustrythatcostbillionsanddestroyjobs,andwhatprofitableindustrywehaveleftisbeingsurrenderedtoEuropeanregulationandcontrol.Wehavegivenupcontrolofourtradeandforeignpolicy,andindeedanyareaofpolicythatmatters.WearenowsacrificingourlegalsystemandtraditionalfreedomsunderthelawtocreateanoppressiveEUsystemofcriminallaw.Theworstthingaboutitisnottheeconomiccost,whichisbadenough,butthecorrosivepoliticalclimateoflies,dishonestlyandcynicismthatgrowsaspoliticiansfromtheoldfailedpartieshidefromthetruth.
The proposition of this booklet is simple enough. If the Coalition Government believes that membership of the EU is financially and economically beneficial to Britain then let them commission an independent cost-benefit analysis to prove it.
ParliamentariansfromallpoliticalpartieshavecalledonGovernmentsofbothcolourstoundertakesuchacostbenefitanalysissince1973withoutavail.IfaloneMEPwiththeassistanceofoneresearchercanproducethisstudythensurelytheGovernmentcancommissionanindependentandcomprehensivestudythatwouldquantifyhowmuchEUmembershipcostsBritainandwhetherwebenefitornot.They won’t do it because they already know what it would prove: that Britain does not benefit from EU membership and that we do not need it to trade and survive in the modern world.
8. Challenge to Government
36 How much does membership of the European Union cost Britain?
1 http://europa.eu/lisbon_treaty/glance/external_relations/index_en.htm2 http://ec.europa.eu/budget/budget_detail/deciding_en.htm3 http://ec.europa.eu/budget/budget_detail/deciding_en.htm4 Article312,TreatyontheFunctioningoftheEuropeanUnion.5 http://ec.europa.eu/budget/budget_detail/overview_en.htm6 TheConsolidateFund(CF)wasfirstcreatedin1787as‘onefundinto whichshallfloweverystreamofpublicrevenueandfromwhichshall comethesupplyofeveryservice.’7 19thOctober2010,IP/10/1351 http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/1351 &format=HTML&aged=0&language=EN&guiLanguage=en8 19thOctober2010,IP/10/1351 http://europa.eu/rapid/pressReleasesAction.do?reference=IP/10/1351 &format=HTML&aged=0&language=EN&guiLanguage=en9 19thOctober2010,MEMO/10/503 http://europa.eu/rapid/pressReleasesAction. do?reference=MEMO/10/50310 TheColumbiaJournalofEuropeanLawOnline.EurotaxandtheFiscal SovereigntyoftheMemberStates.http://www.cjel.net/wp-content/ uploads/2010/11/Leen-Eurotax-November-13-2010.pdf11 Statementonthe2006ECbudgetandmeasurestocounterfraudand financialmismanagement.May2006.http://www.hm-treasury.gov.uk./ media/7/5/ecbudget250506.pdf12 6December2005http://www.timesonline.co.uk/article/0,, 13509-1905742,00.html13 CouncilDecisionof7June2007onthesystemoftheEuropean Communites’ownresources(2007/436/EC,Euratom).14 CouncilDecisionof7June2007onthesystemoftheEuropean Communites’ownresources(2007/436/EC,Euratom). http://ec.europa.eu/budget/library/documents/revenue_expenditure/ own_resources/calc_own_res_2007_en.pdf15 27thOctober2010,MEMO/10/527. http://europa.eu/rapid/pressReleasesAction.do?reference= MEMO/10/527&format=HTML&aged=0&language=EN&guiLanguage=en16 6thSeptember2010,BBC.http://www.bbc.co.uk/news/ world-europe-1119896017 24thNovember2010,HCColumn364http://www.publications. parliament.uk/pa/cm201011/cmhansrd/cm101124/text/101124w0003. htm#1011247600209118 IanMilne,DirectorofthecrosspartythinktankGlobalBritainsince 1999.ACostTooFar,PublishedbyCivitas,July2004.19 LabourEuro-SafeguardsCampaignBulletin,September2008.20 UKSeaFisheriesStatistics2009.Table2.6http://marinemanagement. org.uk/fisheries/statistics/documents/ukseafish/2009/final.pdf
9. References
How much does membership of the European Union cost Britain? 37
21 UKSeaFisheriesStatistics2009.Table2.6http://marinemanagement. org.uk/fisheries/statistics/documents/ukseafish/2009/final.pdf22 January2009,TheTaxpayersAlliance.http://www.taxpayersalliance. com/home/the-price-of-fish-costing-the-common-fisheries-policy.html23 UKSeaFisheriesStatistics2009.Table3.1http://marinemanagement. org.uk/fisheries/statistics/documents/ukseafish/2009/final.pdf24 January2009,TheTaxpayersAlliance.http://www.taxpayersalliance. com/home/the-price-of-fish-costing-the-common-fisheries-policy.html25 InanarticleforthenewspaperWeltamSonntag,inJanuary2007, formerGermanPresidentRomanHertzogsaidthat84%ofGerman lawsstemmedfromtheEU.26 GlobalBritainBriefingNotes64.TheRotterdam-AntwerpEffectandthe NetherlandsDistortion.27 GlobalBritainBriefingNotes,6728 ProfessorRolandVaubelinaspeechgiventotheBrugesGroupin Londonon6thNovember201029 Newglobalregulatorystandardsonbankcapitaladequacyandliquidity agreedbymembersoftheBaselCommitteeonBankingSupervision.30 Article312,TreatyontheFunctioningoftheEuropeanUnion31 GlobalBritainBriefingNotes,61to65.
38 How much does membership of the European Union cost Britain?
ThisstudywouldnothavebeenpossiblewithouttheinvaluableassistanceofmyresearcherFiona WisetowhomIamextremelygrateful.
Furtherassistancewasgivenby:
ProfessorTimCongdon IanMilne JohnMills TonyScholefield
10. Acknowledgements
How much does membership of the European Union cost Britain? 39
40 How much does membership of the European Union cost Britain?
TherearecurrentlytensofthousandsofEUDirectivesandRegulationsoperativeintheUK.
Thespreadsheetsonthefollowingtwopagesareasimplifiedversion(forspacepurposes)ofonepublishedbytheOpenEuropeThinkTank,ofthetop99Directivesincostterms.
JusttheTop99EUDirectiveshavecosttheUKanaccumulated£113.8 billionandanongoingyearlycostin2010aloneofover£20 billion.
11. Appendix
How much does membership of the European Union cost Britain? 41
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Gerard Batten was a founder member of the UK Independence Party in 1993 and was first elected as a Member of the European Parliament for London in 2004. He was re-elected for a second five year term in 2009.
From 2004-2009 he was a member of the European Parliament’s Security & Defence Committee. From 2009 he has been a member of the Civil Liberties, Justice and Home Affairs Committee.
This is the fourth edition of this study since 2006. It was featured in an article in the Daily Express on 31st March 2011. It is one of the very few serious attempts to quantify the cost of EU membership on the UK economy.
He has also published articles and pamphlets on electoral reform, defence, immigration, fundamentalist Islam and a range of other subjects. He has appeared on national radio and television including BBC2’s Newsnight, Radio 4, and is also a contributor to Russia Today TV,and has written commentary pieces for the Daily Express.
He uses his position as an MEP to campaign for Britain’s unconditional withdrawal from the EU.
FirstPublishedinGreatBritainbyGerardBattenMEP,March2011.Copyright©GerardBatten2011.Allrightsreserved.PrintedandboundbyCaxtonPressLtd.Unit16,MidasBusinessCentre,WantzRoad,Dagenham,EssexRM108PS.
FirsteditionAugust2006,secondeditionAugust2007,thirdeditionNovember2008,fourtheditionMarch2011.
How much does membership of the European Union cost Britain?
ContactGerard Batten Member of the European Parliament for London
020 7403 7174 [email protected] www.gerardbattenmep.co.uk
