William Hague has recently stated that although he dislikes much about the EU, he will be voting to remain. His arguments amount to the following. He thinks that we have to be in the single market to shape and benefit from it. He thinks that the EU despite its faults helps other countries to become and remain democracies. It is therefore, he thinks, not in the interest of the UK to weaken the EU and add further uncertainty into an already uncertain world. He furthermore thinks that the UK voting to leave the EU may lead to the breakup of the UK itself by encouraging the SNP to have another referendum.
The first thing to realise about the EU single market is that you don’t need to be in the EU to have access to it. There are presently four countries that have this
access without being members of the EU. The idea that Britain would not have
access if we leave is therefore strange. It’s in no-one’s interest to erect barriers
to free trade. Everyone would lose out. It’s in no-one’s interest either to
prevent free movement of labour. Imagine if suddenly the EU said that Brits
could not live and work in Poland. Well this would affect few of us. I imagine
some English language teachers might have to leave Warsaw. But we’d probably be
able to survive that. On the other hand if Britain said that Poles no longer
had the right to live and work in the UK, this would have rather more severe
consequences, both for Poles and the UK economy. Far more Europeans want to
live and work in the UK than the other way round. So the likelihood of Brits
not being allowed to live and work in the EU after Brexit must be vanishingly
small. This is not least because there is no reason to discriminate against
Britain when the Swiss have access to the single market and can live and work
anywhere in the EU they please. Of course, the EU could decide to take revenge
on Britain for leaving. But really the UK and the EU have things that we want
from each other, each side would lose out if we started playing tit for tat. This then would form the basis for a deal.
I think Mr Hague is really worried about not being
able to shape the EU single market. Whenever there is a summit, he or his
friends and colleagues would not be there. That’s tough for them, but I’m not
sure it’s of much interest to the average Brit. The truth of the matter is that
we have almost no influence as it is. Mr Cameron went to the EU with a list of
reforms and has pretty much found them all rejected. There no doubt will be some token gestures, but nothing fundamental. We have minimal influence
on the EU for a simple reason. We chose some time ago not to take part in the
two key EU projects which would they hope lead to ever closer union. We decided
not to join the Euro and we decided not to join the Schengen zone of passport
free travel. The reality is that we are not going to shape the single market
whether we are in or out of the EU. We are not going to shape anything much as we
ceased being a core EU member long ago.
Would Britain leaving the EU damage the EU? The EU
has had a pretty rough few years. The economies of the southern European states
are in terrible trouble. The Euro far from fulfilling the dreams of its
founders has turned into a recession machine. On top of that we have had a
crisis in the Schengen zone, with members erecting barriers to prevent
migration from outside the EU. Britain leaving the EU would certainly be a
blow. We might well set an example to other countries to do likewise. But
here’s the thing. If the UK left the EU, we would become once more a fully
sovereign state. The UK Parliament would no longer be trumped by anyone else.
Our MPs would be the final arbiter of our laws and we would be able to kick
them out if we disagreed with them. The fundamental problem with the EU is that
we are ruled by people we cannot kick out. We didn’t elect Mr Juncker and we can’t
get rid of him. We don’t elect the European Commission. Its members are
appointed. No one can kick them out. This is not much of an example of democracy for countries moving
towards this path. A fully democratic UK with as much sovereignty as the USA
would provide a far better example of democracy. The USA would not allow a
foreign court to tell its parliament or its president what to do. Canadians
wouldn’t allow this, nor would the Japanese. Each of these countries functions
perfectly well without being ruled by a supra-national body. They have free
trade and good relations with their neighbours. They are all better examples of
democracy than the EU.
For years people have been predicting the breakup of
the EU. Whenever there is another crisis in the Eurozone we wait with
anticipation for Greece to get kicked out and for the whole house of cards to
come tumbling down. If it was going to happen, it would have happened already.
The EU and the Eurozone is for life, not just for Christmas.
But the EU is going to change, no matter what the UK
decides. There are going to be different classes of
membership of the EU. There is going to be the core group of Eurozone members
and then there are going to be the rest of us. The latter could even be called
associate members and may well include those non-EU members of the single
market and Schengen zone. There are going to be different rules according to
these factors. Is a country a member of the Eurozone and Schengen? This puts it
in the core. Is a country only a member of Schengen? This puts it in the
associate members. Is a country neither a member of Schengen nor the Eurozone?
This frankly makes it less of a member of the EU even than Switzerland.
The core EU countries are going to move towards ever
closer union. The end point of this will be some sort of federal United States
of Europe. But however we vote in an EU referendum, we won’t be part of this,
not unless we choose to join the Euro and Schengen. Whatever happens we will
end up an associate member like Switzerland and any other EU country that
decides it doesn’t fancy joining the Euro or Schengen. In one sense, therefore
we will leave the EU, no matter what which way we vote. We’ll be like Switzerland, Norway, Iceland et
al, or rather we’ll be less full members of the EU even than they, for they
after all are part of Schengen. The reality is that we are this already. In another sense we’ll remain in the EU
whichever way we vote. We’ll keep some aspects of the EU, such as the single
market and the rules that go with it and we’ll keep free movement of people,
perhaps with some slight modifications. We’ll keep these things no matter what,
not least because there isn’t a single country in Western Europe that doesn’t
have them. Alternatively you can believe that voting to leave the EU casts the
UK into outer darkness.
The issue then is how we get to this associate
member status. This could also be described as how do we get to where we in
fact are. Do we get there by a process of negotiation or do we get there by
being told what the nature of our associate membership will be. If we vote to
leave the EU, the end point will be some sort of associate membership the terms
of which will be determined by negotiation. The only way to get any sort of renegotiation
on the terms of EU membership is to ask to leave. Anyone who doubts this should
read the Lisbon Treaty. Only when a country asks to leave the EU can negotiations
even begin. Until then it’s just a lot of fluff as Mr Cameron is finding out.
So if we vote to stay in the EU we will end up with
associate membership and if we vote to leave we will end up with associate
membership. In some ways the referendum is about nothing. But what hand would
you rather be playing? That’s the issue. That indeed is the only issue.
What of Scotland? Well the SNP will want to hold
another referendum on independence whether or not we vote to remain or leave in
the EU. They don’t need an excuse. Their only reason for wanting a referendum
last time was that they won a majority in the Scottish parliament. Even if
Britain votes to stay in the EU, it may well be that in a few years that the
SNP will want to have another go. The thing with nationalism is that you can’t
appease it. You can’t say if only we do this or that the SNP won’t want another
referendum. Whatever you do, they will want another referendum. Mr Hague might be better learning from how the Spanish deal with secession movements. It's very easy indeed to make their threats empty. You just have to say No. Sorry Nicola, the people said No. Bye.
As I’ve long argued however, leaving the EU makes
Scottish independence far less likely. It virtually makes it impossible.
Membership of the EU is the condition for the possibility of sub-nation
nationalism. All the things that everyone in Scotland likes about the UK, such
as the pound, such as an open border, depend on Scotland and the UK having the
same EU status. If the UK voted to leave the EU and Scotland voted for
independence in order to stay, it would be impossible to argue that life would
continue more or less the same. In these circumstances independence becomes a
massive leap into the unknown. Given the nature of the Scottish economy at
present, given our dependence on subsidy from the rest of the UK, the idea that
a vote to leave the EU precipitates Scottish independence is very dubious
indeed. Nicola Sturgeon would love Scotland to be independent, she will bluster
and complain, but she knows in her heart that we cannot afford it. Until and
unless that changes Scottish independence is a dead parrot. You can bash it all
you like, it won’t wake up.
Almost no-one in Scotland wants to join Schengen and
almost no-one wants to join the Euro. A few may fancy being an independent
Scotland within a United States of Europe. But small countries with struggling
economies are not treated very generously by the EU. In the end no-one in
Scotland will object if we end up with associate member status of the EU. Access
to the single market plus free movement of people is all pretty much anyone in
Britain wants. How many voters in Scotland
are going to climb the barricades for the sake of the Common Agricultural
Policy or the latest regulation from the European Commission about light bulbs? There are no grounds for the SNP complaining, though they will of
course complain. Scotland as a part of the UK is going to end up with associate
membership of the EU, no matter what. But really we have that already, the
issue is simply whether we get to renegotiate the terms of our membership. That’s
the choice. The SNP do not need a reason to seek divorce from the UK, but even
they might realise that these are not grounds, not least because this sort of semi-detached
relationship with the EU will be just as popular in Scotland and within the
ranks of the SNP as it will be elsewhere in the UK.