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EU

EU debate
by

Ola Jaskolska

on 25 November 2013

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Transcript of EU

European Union - a great idea or a big mistake?
Overview
United Kingdom
Discussion Topics
UK and EU
Is the European Union a good or bad concept?
Should the United Kingdom leave the European Union?
Summary
PROs
CONs
PROs
CONs
Summary
before World War 1
1949 Council of Europe
1950 Treaty of Paris France, West Germany, Italy, Belgium, Luxembourg, and Netherlands
1957 Treaty of Rome


The polls show that between 51-56% of the UK’s citizens would vote for leaving the EU
No need to deal with the EU bureaucracy
More flexibility - important especially during the global crisis
No need to deal with absurd policies
EU is not a democratic system
Right to self-determination
Most of the officials are appointed, not chosen
The EU institutions are very centralized
The UK does not have a significant power any more - take over of the state's powers by the EU institutions
The UK was isolated anyway:
no euro
no common fiscal policy
Create own trade policy with whoever they want; Easier to become a global partner (focus more on global market than the EU); trade with the EU (38%) on a decline plus weak Eurozone – further decline most likely
Trade will not be hurt (the UK can have similar agreements with the EU as Switzerland or Norway)
Better control over EU immigration (work permits instead of the open job market) = less unemployment; Social Security and Healthcare systems less strained
 Economic reasons
No contribution to the EU: 8bn pounds net transfer the EU /3rd biggest contributor/
No need to deal with the Eurozone problems, bailing out Greek/Cyprus/Italy/Spain….maybe still worried about Ireland
Less regulations for industries and agriculture
Less regulations for companies - EU regulations cost business 19 bn pounds a year (source: BBC)
Political Divide
"Closed For Business"
Evolution of the EU and readjusting the position within the Union.
What would happen to the UK's standing if they isolate themselves from Europe?
3 dimensions
- Political
- Economic
- Cultural
Questions?
European Union
pros&cons



Bureaucratic

• Only one segment of EU “government” is voted on by the people
• Others are appointed

Undemocratic

• Less sovereignty
• Less individual state control

War?
POLITICAL


Fates are tied together
• More prosperous countries suffer from poorer countries
• Often must bail out struggling economies, which can get messy (see: Greece)

Single currency
• Good in theory, but not all countries use it!
• Struggles in one Eurozone country affects the value of euro for all other countries
ECONOMIC
Limits Fiscal Policy
Countries struggle to attract enough buyers of national debt.
Cultural
Unity?
1973 Denmark, Ireland and the United Kingdom
1981 Greece becomes the 10th member
1986 Spain and Portugal joined
1986 Single European Act
1992 Maastricht Treaty signed and became effective in 1993
1995 Austria, Finland and Sweden joined
1999 euro become in to existence
Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, The Netherlands, Portugal and Spain
budget deficit of less than 3 percent of their GDP
debt ratio of less than 60 percent of GDP
low inflation
interest rates close to the EU average
Greece joined in January 2001, Slovenia in January 2007, Cyprus and Malta in January 2008, Slovakia in January 2009, and Estonia in January 2011
2009 Lisbon Treaty
European Commission
The European Council
Council of the European Union
European Parliament
Court of justice of the European Union
Court of Auditors
The European Central Bank
1973 joined the EU
Pound Sterling



Opt out The Maastricht Treaty currency rule
Declined to join the Schengen Agreement

Questions?
History
History
History
7 Institutions
European Union has 27 members
Eurozone has 17 members
How to join EU?
Stereotypes
Richard Swartz:


“More than 300 million people are expected to form a union in a relatively small area where we do not need to travel very far before we are unable to understand what the locals are saying, where we encounter populations who dine on unfamiliar foods and beverages and sing other songs and revere other heroes, where behaviour is regulated by a variety of relationships to time and a diversity of dreams and demons.”
“A day will come when there will be no battlefields but markets opening to commerce and minds opening to ideas.” –Victor Hugo
Political
Supranational body
Safeguards peace
Large changes are made and implemented quickly
Major political landscape in the global stage
Common policies
Regional
Economic
Cultural
Easier traveling
More product and service choices
Increased migration
More cultural diversity
Economic
Single market
Easier trading
Job creation
275 million jobs
Increased prosperity
2.15% of GDP
In 2006, an overall increase of €240 billion or €518 for every EU citizen
Lower prices
Brexit

Europe is stronger when we do so, whether it be in trade, in defence or in our relations with the rest of the world. But working more closely together does not require power to be centralised in Brussels or decisions to be taken by an appointed bureaucracy.


Certainly we want to see Europe more united and with a greater sense of common purpose. But it must be in a way which preserves the different traditions, parliamentary powers and sense of national pride in one's own country; for these have been the source of Europe's vitality through the centuries.

Margaret Thatcher

1988 Sep 20, Bruges
http://www.margaretthatcher.org/speeches/displaydocument.asp?docid=107332
Raise in confidence and pride of being Brit
The are/used to be EU directives on:

bananas/cucumbers curve
ban to claim that water can prevent dehydration
ban for unsupervised children under the age of eight to blow balloons (in case they swallow them and choke)
making snails an inland fish (at least in France)
The significant change in the classification of snails results in the subsidized breeding of snails in, the same way as fisheries in any other European country. The French government has a powerful farming lobby and the subsidies will help French farmers prosper.

http://www.fishlvr.com/2010/03/25/snails-have-unexpectedly-become-inland-fish-the-absurdities-of-the-european-union-directives/
UK’s citizens want to leave
Fiscal Compact
Treaty on Stability, Coordination and Governance in the Economic and Monetary Union

Signed March 2012 by 25 EU members.
The UK will be perfectly fine without the European Union
The economy will develop much quicker with no EU directives' chains
The country would be more independent politically
People would be proud of being "Brits" again
http://www.nbcnews.com/video/nightly-news/50151094#50151094
Interest Rates

Interest rates not suitable for whole Eurozone.

A common monetary policy involves a common interest rate for the whole Eurozone area
Interest rate set by the ECB may be inappropriate for regions which are growing much faster or much slower than the Eurozone average
Example: 2011 increased interest rates
Debt Levels
Political Divide

Send the wrong economic signals

Repositioning is key

Strained relations with trading partners
Pros
Cons
Undemocratic

Too Messy

EU is not USA
Common Agriculture Policy (CAP)
38% of the 2014-2020 budget will be spent on agriculture
"The arguments for investing in Britain remain the same. We are part of that single market. We have very low tax rates, a competitive labour force, and all sorts of excellent things like our brilliant universities, the English language and the time zone that is so central to the world".

David Cameron
Would exiting the EU scare potencial investors?
Largest economy
More diversity
Safeguards peace
http://www.huffingtonpost.co.uk/2013/01/25/david-camerons-eu-speech-business-reaction_n_2550012.html?utm_hp_ref=uk-business&just_reloaded=1



Zoya Asgari
Ola Jaskolska
Patricia Feliciano Mercado
Brett Nevins
Chad Smith
Pros
Cons
Full transcript