Showing posts with label Europe. Show all posts
Showing posts with label Europe. Show all posts

Saturday, 24 December 2016

Brexit: Six months on

This article originally appeared on United Politics on 23/12/2016

It’s six months to the day since the historic vote for the UK to leave the European Union. The intervening months have been, by the expectations set during the campaign, rather uneventful.

Sure, we’ve lost one Prime Minister and gained another (our second female leader to boot), the Government’s been dragged through the courts, Labour had it’s annual leadership election, UKIP ripped itself to shreds and the Lib Dems did, well, whatever it is they do these days. But the British landscape has been curiously devoid of recession, world war three, or the collapse of western civilisation.

Of course, far from having actually left, we have yet to begin the exit negotiations that commence upon the triggering of the notorious Article 50. Some of the blame for this can be laid at the feet of Vote Leave. Whilst it was ultimately a successful campaign, it contained no more substance than Stronger In’s doomed efforts to keep us tied to Brussels.

There was no Brexit plan laid out whatsoever, and whilst it allowed for more maneuverability during the campaign, enabling them to paint Brexit as whatever it’s current audience wanted it to be, it means that there’s been plenty of flapping around since.

This has actually played into the hands of continuity Remainers who wish to see the referendum result ignored.  The lack of any sort of plan allows them to indicate that we’re woefully unprepared for the challenges ahead, and/or push for a Brexit so close to continued EU membership as makes no difference.

The vacuousness of some of Vote Leave’s campaign messages has left Leavers wide open to these criticisms. Touting the £350m figure was a spectacular own goal, as the same point could just as easily be made using the net figure, or even the savings to be gleaned from an EEA/EFTA position.

Not that all of the blame can be laid at the feet of Vote Leave. They were after all only a campaign group, and regardless of how detailed or otherwise any plan of theirs may have been, they were not being elected. A point seemingly lost on Chuka Umunna and his meaningless ‘Vote Leave watch’ outfit.

David Cameron on the other hand, when he called the referendum, should have put more effort into ensuring government and the civil service was prepared for either eventuality, rather than enlisting the machinery of government to campaign for his favoured outcome. The lack of preparation for a Leave vote, and the arrogance that signifies, should mean history sees him vilified, regardless of his other achievements.

This is why, despite the calls to invoke Article 50 immediately, there has been a necessary delay whilst the government finds it’s feet. They’re certainly taking their time, but slowly but surely they seem to be coming to grips with what can and can’t be achieved during the two year Article 50 negotiation period.

But if Vote Leave has been shown to be the shallow campaign it was, Stronger In’s entire case for remain has been utterly obliterated. In the immediate aftermath of the vote they pointed to the fall in sterling as proof positive of the economic ruin that awaited a United Kingdom sans EU membership.

But economists have long been arguing that the pound was overvalued, and a devaluation was necessary and desirable in order to rebalance the economy. This has been demonstrated in both the FTSE 100 and 250 which have soared since the vote in June, now sitting comfortably above their pre-referendum levels.

Nor has there been an exodus of investment. A cursory glance at the ironic #DespiteBrexit hashtag on Twitter unveils a litany of, shock horror, good news in the wake of the referendum result. From car manufacturers (plural), to banks, to supermarkets, a litany of companies have committed to the UK for the foreseeable future.

This is because the UK still remains an attractive place for businesses to invest. Forbes yesterday moved the UK from tenth to fifth in it’s list of the best places in the world to do business. Couple this with the OBR predicting further growth of 1.4% in 2017, returning to the long run average by 2019, as opposed to the -0.7% recession predicted by the Treasury, and the foretold economic armageddon looks as likely as Jeremy Corbyn becoming PM.

All this is taking place alongside a sideshow of various challenges to UK democracy. The high court battle on whether Parliament should vote on triggering Article 50 seems somewhat of a red herring, and has wrongly been shouted down by Brexiteers worried about the result being overturned.

Their fears aren’t completely unfounded, given the ‘March for Europe’ demonstrations in London (they would be much more accurately entitled ‘March Against Democracy‘), the various petitions for a second referendum, and the numerous MPs and political leaders, celebrities, and academics calling for another vote or for the vote to be ignored outright. It’s been quite a spectacularly worrying admonition of democracy.

Those that would seek to subvert the result in this way should perhaps be careful what they wish for, considering the latest poll shows that we’d still vote to Leave were there a second referendum. Given the largely positive economic news since the vote, negating Stronger In’s entire shtick, it’s not exactly difficult to see why.

We’re still three months away from Theresa May’s stated timetable for Article 50 notification. Ministers appear to be catching on to the inevitability of an interim EEA or ‘Norway’ option, as we begin unpicking 40 years of political integration with mainland Europe. Brexit was never going to be an event, it was always going to be a process.


Post-Brexit politics has made the last six months utterly enthralling. But it’s mostly been white noise thus far. Once the Article 50 ball comes loose from the back of the scrum, and negotiations with the EU begin in earnest, things will start to get really interesting. Roll on March 2017.

Saturday, 2 July 2016

The 'March for Europe' is a march against democracy


This weekend has seen thousands of Remain voters (or if you prefer, 0.01% of the electorate) descend on London to protest against the referendum result last week. The 'March for Europe' event, is a culmination of a week of anti-democratic, sneering contempt from those on the losing side in the referendum. We have seen over 4 million people sign a petition for a second referendum. Ignoring the fact that that's still roughly 13.4 million short of being even remotely relevant, many of those signatures were found to have been added by bots, including 39,000 from Vatican City, which has a population of 800. This is probably why the petition is being investigated for fraud. Not content with leading the Lib Dems to a glorious 6% in the polls, and abandoning any pretence of being liberal or democratic, Tim Farron announced that his party would stand in the next general election on a platform of taking us back into the EU. David Lammy, a Labour MP, has already called for Parliament to ignore the result, and there has been a wailing across social media, from the public and celebrities alike, for the Government to do just that. Shockingly, the UN Special Representative for International Migration, Peter Sutherland, has said ‘somehow this result must be overturned’. The UN rightly condemns African or Asian dictators who ride roughshod over the will of their populace, yet when it comes to Britain, they're apparently calling for exactly that. The whole thing has been frankly ludicrous. Remainers would be rightly uproarious had the referendum result been reversed and parliament decided to ignore them and leave the EU anyway, but they see no problem in calling for our politicians to ignore the majority of the electorate in this instance. There's a huge irony in these people calling for as many people to register to vote and make their voice heard in the run up to this event, only for them to then call for those voices to be roundly ignored, despite leaving the EU gaining more votes in favour than anything else in British history.

Because if there was one thing that this vote represented, it was the will of the people. The issue has engaged more people in politics than anything I've ever seen. My Facebook feed is usually full of daft (if occasionally hilarious) memes and videos of dogs doing pointless yet adorable things, and yet in the run up to the referendum I saw a plethora of posts and articles from people who are usually much more content informing us all about the make-up of their dinner. This engagement was reflected in the turnout, which was higher than it has been for any plebiscite in over 20 years. Add to that the fact the winning margin was over 1.2 million votes and the claim that there is no mandate for leaving is as accurate as a blind man in a darts competition. The argument that many Brexiteers are now regretting their vote is also laughable when you consider that the source of this argument is a poll stating that 1% of leave voters are unhappy with the result. The same poll indicates that 4% of remain voters are happy with the result, indicating a greater regret about their vote amongst those that voted to remain than those that voted to leave.

Much of the argument has centred around the claim that the Leave campaign was full of lies and voters were misinformed and thus should be ignored. That argument is staggeringly patronising. All of us, on both sides of the debate, had access to the exact same information. Moreover, this wasn't a snap referendum. Cameron gave his Bloomberg speech in which he set out his plans for a referendum in January 2013, over three years ago. The Conservatives won the election last May so from that second we knew a referendum was definitely coming and thus could begin looking into the issue and trying to make ourselves as informed as possible. I'm not for one second claiming that everyone who voted was an expert on the EU, but the insinuation from Remainers that they did their homework and Leavers were somehow brainwashed by propaganda is outrageously arrogant. There were of course lies and misinformation from Vote Leave, but there was just as much from Stronger In, and they had the weight of the Government behind theirs to boot. I personally voted the way I did in spite of Vote Leave, not because of them, and I know many others who are in the same boat. There's something laughable about the suggestion too, given that the title of this protest once again conflates the EU with Europe. It seems churlish to point out, but we are not altering the UK's geography. Not one person on the leave side has advocated cutting ourselves off from the world, turning inwards, or becoming 'Little Englanders'. The argument has always been about a global Britain, looking out towards more distant horizons than those across the English channel. We have always advocated trade and co-operation with our friends and allies on the continent. Ironically, by buying into the notion that the UK is leaving Europe rather than merely extricating ourselves from a supranational political institution, Remainers have succumbed to the very brainwashing they accuse their opponents of. Claiming that one should love the EU if one loves Europe is like claiming I should love Flintshire County Council because I am fond of my home county. It is a nonsense.

There's also an argument that the whole point of the sovereignty of Parliament is to keep a check on the whims of the electorate. Funnily enough, I actually think that it's the whole point of the electorate to keep a check on the whims of Parliament. Ironically, it's precisely this argument which is why people like myself voted to Leave in the first place. The EU was deliberately designed so as to not be susceptible to the populism that brought Hitler to power in the wake of the first world war. But that lack of accountability to the electorate is precisely what's facilitated the rise of populism, both left and right wing, across the continent. When people get angry at those that rule them, and have no recourse through the ballot box to remove them, then they inevitably get drawn to the more extreme ends of the political spectrum. According to polling by both Ashcroft and ComRes, the number one priority for leave voters wasn't immigration, but democracy and sovereignty. This howling against the democratic will of the people is precisely why we voted to leave, so that our law makers and tax raisers would be accountable to us. Advocating parliament to ignore the result of the referendum and plough on with EU membership and all the integration that entails regardless, risks unleashing something very ugly in this country. If lefties hate UKIP now, they would only see the popularity of Farage's party soar in the wake of such an act. It would also exponentially increase the feeling that a vote counts for little and makes no real difference. There were no 'safe seats' in this referendum. Every single vote counted towards the result. If that result is ignored, there could well be riots, or worse, complete and total disengagement and apathy towards politics on a scale we've never seen.

I pushed for a leave vote because I believe that the electorate should decide how we are run, and should take that decision through the ballot box. I believe that Brexit has the potential to truly revolutionise our democracy, getting people more involved in politics and making our politicians more accountable. This idea that our rulers know best and the little people should shut up and let the politicians get on with it is exactly the idea we're trying to defeat.

Wednesday, 22 June 2016

A final plea on polling day



Today, Britain will go to the polls and decide whether or not we will leave the European Union. The past few months have been one hell of an interesting affair, with wild claims being bandied about on both sides of the argument. There are few people I pity more than those who have been relying solely on the official campaigns for their information, the level of debate has been almost farcical at times and the media spin on all sides has only muddied the issue further still. Given this, I can understand some people making the argument that it's far too complex an issue to be decided by a referendum and that it should be down to our elected representatives to decide. That said, the reason we are having a referendum in the first place is because our elected representatives have ceded power and sovereignty to the EU over the last four decades without once consulting the public, be that in a referendum or making explicit manifesto pledges to do so at a general election.

Fortunately we live in the age of the internet. Of smart phones and social media. This has made it easier to proliferate some of the more questionable claims from both camps, but equally has also made it easier to counter them. Whilst I have been blogging here about the various reasons for leaving as I see them, as well as trying to counter some of the misinformation propagated by both campaigns, I've also spent an inordinate amount of time on social media making the case for a progressive Brexit and countering any misconceptions I've come across. It's felt a little like beating my head against a wall at times (if I see the 'still pay, no say' fallacy about the Norway option one more time I shall need to be escorted to a room with cushioned walls wearing a jacket with extra long sleeves) but by and large the debate has been overwhelmingly civil and some have said that I've helped them understand things they were previously unsure about. It's been humbling, I'm by no means an expert, but I've done as much reading as I can (often hiding out during my day job to peruse articles on global regulatory mechanisms and the various characteristics of the EEA agreement), I feel I've learnt a lot, and I've tried to make a positive, informed case. Before we go to the polls, allow me to briefly summarise it for you.

The EU is an outdated construct. It was formed in an era when trade blocs seemed to be the way forward. But in the modern age of globalisation and the internet, geographical proximity has never mattered less for trade. There is a global single market emerging, with a whole host of regulatory bodies that we do not have an independent vote and veto on thanks to the EU, and indeed our position is often undermined because of our membership. As the 5th largest economy in the world, and using our ties to countries across the globe to build coalitions, we could wield significant influence in the shaping of trade regulations before they get anywhere near the EU, and push for regulatory harmonisation at a global level, facilitating free trade across the world. Freed from the confines of the common external tariff, we can pursue trade deals with the rest of the global markets that are growing exponentially, the benefits of which will be reaped both at home, and world wide. Offering free trade to African farmers for example, will help push down food prices here whilst allowing them to export their way out of poverty, rather than leaving them impoverished by virtue of being unable to compete with European farmers, thanks to the tariffs the EU places on their goods. By removing ourselves from the tariffs the EU imposes on Chinese solar panels, we can more effectively and more cheaply pursue greener energy sources here at home, again driving down the cost of living. Engaging with the world gives us a myriad of these possibilities.

Not that we have to choose between the EU and the world. Because Article 50 only allows for two years in which to negotiate a deal to leave, the only feasible route out is the so called 'Norway option'. This step to the EEA via EFTA maintains full access to the single market, and ensures an economically neutral exit, and a secure platform from which to start disentangling ourselves from the EU. Brexit is a process, not an event, and we cannot undo 40 years of political integration overnight. Contrary to what the Remain side will tell you, this does not mean that we still pay without having a say over the rules. The EEA agreement itself disproves this:

"According to the principle of unanimity applied in the EEA Joint Committee, all the EFTA states must agree in order for new EU legislation to be integrated into the EEA Agreement and for it to apply to cooperation between the EFTA states and the EU. If one EFTA state opposes integration, this also affects the other EFTA states in that the rules will not apply to them either, neither in the individual states nor between the EFTA states themselves nor in their relations with the EU. This possibility that each EFTA state has to object to new rules that lie within the scope of the EEA Agreement becoming applicable to the EFTA pillar is often referred to as these parties’ right of veto.

So far, this right has not been exercised. This is partly because when EU legislation is to be integrated into the EEA Agreement it is submitted to the EEA Joint Committee at the final stage of an extensive process of information and consultation between the contracting parties. The purpose of this process is to ensure that agreement is reached on such decisions. During the negotiations on the EEA Agreement, compromises were found if a state had constitutional objections to the content or could invoke fundamental national interests. Even though constitutional problems are unlikely to arise in the day-to-day EEA work, the will to reach necessary compromises must still be regarded as a basic condition for cooperation." So Norway is consulted regularly via the EEA Joint Committee on any regulations pertaining to the single market and even has access to the EFTA veto.

Nor are their payments anything like as much as ours. Norway's expenditure relating to the EEA consists of several factors. Firstly there is the 'Norway Grants', aid paid by Norway as a form economic rehabilitation of post-Communist countries. These amounted to around €804 million from 2009 to 2014. Most importantly, this money is not paid to the EU.
There are also EEA grants, for which Norway provides 95% of the funding. This brings the total to €1.8 billion for that 5 year period. EFTA contribution to EU programmes affecting the EEA amounted to €1.7 billion, with Norway providing roughly 96% of the cost. Norway also participates in several EU programmes, including Horizon 2020 and the Erasmus research programmes, as well as participating in 26 EU agencies, relating to health, research, and education amongst others.

Norway's contributions are the price paid for a service, and funding is not one way. Norway's net contribution over the period was €620 million, or €90 million per year. Applying this on a pro-rata basis to the UK upon rejoining the EFTA, we would contribute approximately €2.5 billion a year. A large part of this would be for continued participation in many of the same programmes and agencies that we currently enjoy. Finally Norway pays roughly £7 million a year towards the EFTA budget. The UK's contribution in total then, on a pro-rata basis, would be roughly £2.36 billion a year. A saving of nearly £6 billion a year on our current contributions. So whilst being a member of the EEA does involve costs, it still represents a potential 75% haircut on our current financial obligations.
The EEA agreement does maintain free movement - something I'm inherently in favour of, and would like to see an independent UK sign more free movement accords with other countries - but it does offer greater protections than we have now. Article 112 of the EEA agreement gives us access to an 'emergency brake', and Lichtenstein, through various protocols and addendums to the EEA agreement, have set a precedent for quantative restrictions on free movement. Moreover, pursuing independent policies outside of the EU, gives us greater scope to address the push factors that ultimately contribute more to migration.

Leaving the EU does not mean turning our back on Europe. We will still continue to trade with our neighbours on the continent, and co-operate with our friends and allies to tackle the challenges we all face. But we can do so as an ally, as an equal, not as a subordinate to a supranational institution that itself is pursuing all the trappings of statehood. Because make no mistake, the EU is not standing still. The Five Presidents report explicitly sets out future plans for further political and economic integration, including common EU taxation and harmonisation of welfare systems. Even if you believe that Cameron's opt out of 'ever closer union' is meaningful, the only consequence will be increasing marginalisation within an EU pushing forward with federalisation. As the EU expands, welcoming new countries into it's ranks, our influence will be diluted further still. We are on two fundamentally different paths. Far better to get out now and work alongside the EU as a constructive partner.

But ultimately, the economic arguments, and debate about immigration are secondary to the one of democratic accountability. The EU Commission is the sole legislative arm of the EU, and we do not elect the people that comprise it. There's a fundamental democratic principle that laws should not be passed nor taxes raised except by our elected representatives. At the EU level they would be our MEPs but they have no power to introduce, nor repeal legislation. That is the sole purview of the Commission. There are those that argue that we should stay inside the EU and seek to reform it. I admire their optimism, but even when faced with the potential exit of one of it's most important members, it refused to offer any meaningful concessions. Only yesterday Jean Claude Juncker has said that: "British voters have to know there will be no kind of any negotiation. We have concluded a deal with the prime minister. He got the maximum he could receive, and we gave the maximum we could give, so there will be no kind of renegotiation." I don't see how that can be any clearer. The EU just does not do reform. By restoring the supremacy of the UK parliament we have the chance to reinvigorate our democracy. Our government will no longer be able to shrug at a problem and say it's out of their hands, they will have to get to the real business of actually governing us. Knowing that their votes count for more, people will begin to engage once again. One of the positives of this referendum is just the sheer number of people who appear to be engaged with the issue. If it matters, people will care. Leaving the EU could be the first step in revolutionising our democracy. There is an appetite as a result of this referendum, for greater democratic control and we can tap into that and pursue real reform, in the way we elect our representatives, in the make-up of the House of Lords, and beyond.

Far from being an inward looking, isolationist choice, Brexit is the outward, global option. It has the potential for us to pursue a truly global agenda, pushing for real change both at home and on the world stage, and most importantly, it gives us the ability to vote for a government that will do it. Vote Leave.

Sunday, 12 June 2016

Why Vote Leave - Part 8: Reform

In the run up to the referendum I intend to post a blog each Sunday detailing the reasons why Britain will be better off outside the European Union. These posts will cover the following topics: the economy, influence, democracy, security, the environment, cost, and reform.

"Britain is better off inside a reformed EU", so says David Cameron. There's every possibility that he's right of course, we'll just never know because a reformed EU isn't even remotely on offer. Preceding this referendum, the PM embarked on a renegotiation with European leaders in an attempt to get better terms for the UK's membership of the European Union. Back in 2013 when Cameron gave his Bloomberg speech in which he promised this referendum, he also set out what he saw as the issues with the EU and what areas he wanted to reform. The PM spoke of the growing frustration of the EU, with it seen as something done to people, rather than something acting in their interests, with decisions taken further and further away from them. He spoke of how the EU "must be able to act with the speed and flexibility of a network, not the cumbersome rigidity of a bloc. Not weighed down by an insistence on a one size fits all approach." He acknowledged that there was no European 'demos', and that "power must be able to flow back to member states not just away from them. It was promised by European leaders a decade ago. It was put in the treaty but it has never been properly fulfilled."

After winning the election, Cameron was given a mandate to go and seek those reforms. On the Marr show in January last year he affirmed his ambition for wide-ranging 'full on' treaty change. The Bloomberg speech also mentioned exemptions for small businesses from EU directives, changes to the working time directive and repatriation of social and employment law - the latter a 2010 manifesto pledge. But with every subsequent reveal it appeared that he was asking for less and less from our European partners. All those exemptions he'd mentioned at Bloomberg were dropped from his negotiations. He didn't even ask for them. Cameron made no attempt to reform free movement, instead opting to focus on in work benefits for migrants. This seemed to be somewhat of an own goal as prior to making it a flagship proposal of his renegotiation it was an issue that barely anyone mentioned.

The Conservative manifesto said: "We will insist that EU migrants who want to claim tax credits and child benefit must live here and contribute to our country for a minimum of four years." It also proposed a "new residency requirement for social housing, so that EU migrants cannot even be considered for a council house unless they have been living in an area for at least four years".
Cameron also wanted to prevent EU migrant workers in the UK sending child benefit or child tax credit money home. "If an EU migrant's child is living abroad, then they should receive no child benefit or child tax credit, no matter how long they have worked in the UK and no matter how much tax they have paid."
Cameron had to compromise on the welfare aspect of his renegotiation quite considerably. The four-year 'emergency brake' on in-work benefits wasn't so much an 'emergency brake' as a light feathering of the throttle, with benefits being phased in over the four years. Cameron failed in his original demand to ban migrant workers from sending child benefit money back home.
The final agreement Cameron secured mentioned no changes to social housing entitlement as they were yet another area he'd dropped before preliminary negotiations began.

So he went from seeking wide ranging reforms and full-on treaty change, to requesting a minor tweak in welfare provisions for EU migrants and even then he had to compromise on that. The vague semantic changes he's been promised about 'ever closer union' and a proposal to reduce the regulatory burden are so vague as to be inconsequential. Moreover, these changes haven't come into force yet, with the PM merely stating that the commitment to these reforms is legally binding. This itself has been shown to be completely false. So there's no guarantee that the pitiful reforms Cameron did manage to secure will ever come into force anyway.

Of course, the fact that the renegotiation has all but been dropped from Remain campaign literature belies how insubstantial it is. Despite this, there's an overarching argument from the In camp that the EU isn't perfect, but we should stay in anyway to help reform it and change it. But if all we can secure is a minor tweak to welfare - itself not guaranteed - when one of it's largest members is threatening to leave, how can we possibly expect to enact the sort of reforms Europhiles claim they want once we've voted to remain fully committed to the project? Indeed, there's evidence to suggest that we could in fact exert greater influence for reform from outside the EU. Australia, by building coalitions on international forums managed to secure greater reform to the EU's CAP than any member state has managed from within. There have been numerous calls for reform throughout the EU's history, yet it has still marched inexorably onwards towards it's stated goal of federalisation.

Because of course none of this means that there won't be changes in the EU. This referendum is not a vote between leaving and maintaining the status quo. There are clear plans to continue towards full political and fiscal union. The Five President's report details the steps to be taken over the next few years to complete this amalgamation. Whilst mainly dealing with the Eurozone, there are several areas in which it specifically pulls in all 28 members, both Eurozone and non-Eurozone countries, particularly in the area of fiscal and banking union. And then, on top of this, there's the talk of tax harmonisation across the Union, as well as a consolidated EU military force. There's no such thing as a qualified Remain vote. Brussels will take a UK vote to stay in the EU as an endorsement of these plans. Given that they're being talked about openly, we cannot plead that we didn't know that that was what we were voting for. Plus thanks to Qualified Majority Voting, we're all but powerless to stop it. 70 times the UK has voted against EU legislative proposals, and 70 times we have been defeated. This is precisely why we should leave. We are on a fundamentally different path to our allies on the continent, and no amount of aspiration to reform the EU will change that.

Sunday, 5 June 2016

Why Vote Leave - Part 7: Costs

In the run up to the referendum I intend to post a blog each Sunday detailing the reasons why Britain will be better off outside the European Union. These posts will cover the following topics: the economy, influence, democracy, security, the environment, cost, and reform.
One of the most prevalent issues pertaining to the UK's membership of the EU is the cost of that membership and whether or not it represents good value for money. This debate has been muddied exponentially between the various use of gross and net figures, the amount of EU expenditure in the UK, the fact that as a net contributor we fund that expenditure, the cost of regulation, what's seen as EU waste and so on. It's difficult therefore to cut through the hyperbole and come to a conclusion as to whether the vast sums we send each year to Brussels constitute value for money.

Let's start with UK budgetary contributions. Vote Leave's headline grabbing figure of £350 million a week is only partially accurate. It is based off of the UK's gross contribution to the EU budget which, last year, was £17,8 billion. However, this does not take into account the UK's rebate, worth £4.9 billion last year, or public sector receipts worth a further £4.4 billion. So the actual cost of UK membership in 2015 was £8.5 billion. This itself is no small sum, but it's indicative of Vote Leave's incompetence that they opted for the gross figure, leaving themselves open to accusations of being misleading, rather than the net figure which few would argue was inconsequential. The UK's net contribution to the EU budget for the period of 2009 to 2014, taking into account rebates and receipts, was £48.6 billion.



So whilst Vote Leave's figure is somewhat misleading, there's no denying that we are a substantial contributor to the EU budget.

Now, opponents of the Norway option claim that despite not being in the EU, Norway still pays around the same for access to the single market. This is just as inaccurate as Vote Leave's £350 million claim, if not more so. Norway's expenditure relating to the EEA consists of several factors. Firstly there is the 'Norway Grants', aid paid by Norway as a form economic rehabilitation of post-Communist countries. These amounted to around €804 million from 2009 to 2014. Most importantly, this money is not paid to the EU.
There are also EEA grants, for which Norway provides 95% of the funding. This brings the total to €1.8 billion for that 5 year period. EFTA contribution to EU programmes affecting the EEA amounted to €1.7 billion, with Norway providing roughly 96% of the cost. Norway also participates in several EU programmes, including Horizon 2020 and the Erasmus research programmes, as well as participating in 26 EU agencies, relating to health, research, and eduction amongst others.

Norway's contributions are the price paid for a service, and funding is not one way. Norway's net contribution over the period was €620 million, or €90 million per year. Applying this on a pro-rata basis to the UK upon rejoining the EFTA, we would contribute approximately €2.5 billion a year. A large part of this would be for continued participation in many of the same programmes and agencies that we currently enjoy. Finally Norway pays roughly £7 million a year towards the EFTA budget. The UK's contribution in total then, on a pro-rata basis, would be roughly £2.36 billion a year. A saving of nearly £6 billion a year on our current contributions. So whilst being a member of the EEA does involve costs, it still represents a potential 75% haircut on our current financial obligations. Especially with news today that the EU could well be looking to increase our contributions after a Remain vote.

But it's not just the UK's contributions to consider when evaluating how the EU handles it's finances. The EU itself is extremely wasteful, and incredibly opaque when it comes to it's expenditure. Take for example MEP's expenses. European Parliament members can garner huge sums, tax free and without proper scrutiny, on top of their £60k salary in the form of grants and allowances. This doesn't even take into consideration the amount that can be claimed in expenses.

Then there's the travelling circus that once month sees the European Parliament decamp from Brussels to Strasbourg at a cost of around £130 million. This includes loading 5 trucks up full of plastic trunks, that once contained files and papers, but have now been rendered obsolete by email and the internet. It's a perfect example of the EU's general inertia and reluctance to reform it's procedures.

So not only will leaving the EU mean we will pay significantly less for market access, whilst still having - arguably a larger - say over the rules, it will also mean that we can spend money much more wisely, giving greater value to taxpayers.

Sunday, 29 May 2016

Why Vote Leave - Part 6: The Environment

In the run up to the referendum I intend to post a blog each Sunday detailing the reasons why Britain will be better off outside the European Union. These posts will cover the following topics: the economy, influence, democracy, security, the environment, cost, and reform.

One of the less prominent, but no less misleading, arguments in this campaign has been that the EU is an effective protector of the environment. This is no doubt based upon it's various directives and green targets which it imposes on it's members in order to drive down their carbon-footprint. This however only paints part of the picture, and belies the way that the EU actually operates, and what it's priorities are, when setting these policies.

A prime example of this was the adoption of palm oil as a biofuel. The European Commission's Roundtable on Sustainable Palm Oil scheme contained an association of hundreds of palm oil growers, processors, traders and distributors, as well as some non-governmental organizations working in palm-oil producing nations, such as Indonesia and Malaysia. This lobbying effort eventually resulted in the EU pushing palm oil as an alternative fuel, meaning that the palm oil producers it licenses can qualify for subsidies. An effective effort on the part of the lobbyists. However, palm oil is not an environmentally friendly biofuel. According to Friends of the Earth at the time of the EU's announcement, "Palm oil is driving deforestation, wildlife loss, community conflicts, and accelerating climate change. Instead of greenwashing palm oil, the EU should outright ban its use as a biofuel." Furthermore, Rainforest Rescue have set out the horrendous effects palm oil manufacture and biodiesel refineries have had, from deforestation to human rights violations. Indeed the Commission's own research into palm oil concluded that extra demand for food crops such as palm oil for the production of biofuels can have a significant impact on climate change, forests and peat swamps destroyed to make way for land to grow biomass for fuel can have an even worse impact on CO2 emissions than some fossil fuels, and that palm oil was one of the worst biofuel sources in terms of indirect land use change. But as other's have noted, Brussels is a lobbyist's paradise.

Palm oil is just one example. Only last year we had the scandal of Volkswagon cheating emissions tests. Almost uniquely in the world, the EU had adopted standards that promoted diesel engines, enforcing emissions standards that focused on carbon dioxide (CO2) instead of nitrogen oxide (NO2).
This was a result again of successful lobbying efforts on the part of European car manufacturers to revive their flagging diesel industry. Diesel emits four times more NO2 than petrol and 22 times more of various other pollutants. However, it does produce 15 per cent less CO2 than petrol, so a massive operation was begun to sell the new standard as part of the Kyoto climate change process to reduce CO2 emissions. Health risks were overlooked, and the conversation was skilfully turned to global warming. The European Commission thus prioritised a cut in CO2 emissions over the more immediate health problems caused by exhaust fumes.
According to Simon Birkett, of Clean Air in London: ‘It was practically an order to switch to diesel. The European car fleet was transformed from being almost entirely petrol to predominantly diesel. Britain, Germany, France and Italy offered subsidies and sweeteners to persuade car makers and the public to buy diesel.’ As a result, diesel cars went from less than 10 per cent of the UK market in 1995 to more than half by 2012, with equivalent rises across the continent, and the EU had successfully promoted a dirtier, more environmentally harmful, fuel.

Corporate lobbying has meant that not only does the EU back environmentally harmful policies, but it also works to restrict access to greener alternatives. Thanks to pressure from EU ProSun, a German led alliance of European solar manufacturers, the EU imposes tariffs of up to 68 per cent on Chinese Solar panels. The protectionist nature of the EU has meant that we in Europe are paying unnecessarily high prices for low-carbon technology. This has had a detrimental effect on the industry, with only 7GW of solar power installed in the EU in 2014, down from 21GW in 2011, and employment in the sector more than halving in the same period.

Leaving the EU will give us the freedom to pursue a much more effective environmental policy. We can take a further leading role on the world stage in shaping global regulations that help, not hinder, businesses that are pursuing environmentally friendly solutions to the world's energy problems, and by eliminating punitive tariffs on low-carbon technology, increase the adoption of green energy here at home. Pushing down the cost of living and increasing jobs into the bargain.

Monday, 9 May 2016

Cameron's Referendum behaviour is unbecoming of a Prime Minister


Of all the weapons grade bullshit the Remain campaign has elected to spout about our membership of the EU, none of it has come close to Cameron's scaremongering today. Speaking at the British Museum, our Prime Minister all but professed that leaving the EU could result in World War 3. “Can we be so sure that peace and stability on our continent are assured beyond any shadow of doubt? Is that a risk worth taking?” asked Cameron, apparently oblivious to riots and protests taking place in Greece and elsewhere across the continent that put a serious dent in the claim of the EU ensuring peace and stability in Europe.

Cameron also performed the signature move of the Europhiles in conflating Europe with the EU. "Whenever we turn our back on Europe, sooner or later we come to regret it" he said ominously. No-one but no-one of course is suggesting we do anything of the sort. Withdrawing from the political institutions of the EU in no way means we shall cease co-operating with our neighbours on the continent. We shall also maintain our membership of NATO, the organisation to which peace in Europe can be more accurately attributed. But the invocation of the war dead, referencing the "white headstones of lovingly tended Commonwealth war cemeteries" was a new low.

Cameron's behaviour throughout this referendum has been a stain on the office of Prime Minister. Be it the attempted removal of purdah rules, the circumventing of those rules in the publication of the government's dodgy leaflet, his ludicrous speech today, or most egregiously, lying to parliament about his meagre reforms being legally binding, Cameron has sullied the post to which he was elected. He may have pledged to stay on in the event of a Leave vote to implement that result, but it's increasingly difficult to see how he can be trusted to, let alone command the authority to do so.