The Burden of EU Regulations
The much-vaunted single market in effect amounts to harmonising a heavy burden of regulation right across the EU, so that all EU businesses are equally handicapped.
The EU Commission itself (7) has estimated that EU regulation costs businesses 600 billion Euros a year, while the savings from the free market amount to only 180 billion Euros. Our competitors have no such burden.
These costs handicap British businesses in creating jobs. Moreover, only 15% of our economy exports to the EU, but all of our businesses, however small and local, have to bear the burden of EU regulation. The City, our most successful exporter, is now feeling the heavy hand of EU interference.
More and more industries are similarly affected - see News of the European Union.
The Eurozone has consistently underperformed most of the rest of the world. The reasons are:
- Excessive regulation - created by Brussels bureaucrats who have never had real jobs
- Interference in the labour market, which protects unemployment, not jobs
- Excessively generous social security programmes which they can't afford
- Too high and badly structured tax rates
- More recently, congenital over-saving by its largest economy and
- The uncompetitiveness of a third of its membership
Our North American and Far Eastern competitors are not weighed down by EU bureaucracy, and can develop in the way that suits them best. Unhindered by the EU, our economy would grow much faster.
Free Trade Creates Jobs
Britain's export businesses would thrive by focusing on the growth markets of the world, not declining and troubled regions like the EU. Their growth would create the new jobs we need, and keep on creating them, year after year. We built our prosperity on free trade.
Economies like the UK and the US that open themselves up to international competition benefit from it. They specialise in the things that they do best, and their industries are forced to innovate in order to survive. The EU has never understood this. France in particular tries to protect every industry threatened with international competition.
Outside the EU, we could negotiate our own trade arrangements with other countries like India, China, Japan, the US, Brazil and Australia. As a member of the EU, we cannot negotiate with these growing countries for ourselves - the EU does it for us. Size may give the Eu negotiating clout, but the objectives of the negotiation are French and German, not British. We could make much better deals for ourselves, deals that suit British trade, not EU trade. We urgently need fewer barriers to our trade in services - Continental Europe does not.
The EU Admits it Faces Economic Decline
All forecasts predict economic decline for the EU - this chart is from the European Commission itself. The single market and the euro have failed to boost EU trade, jobs and economic growth, according to a devastating report from an official French think-tank, which includes 40 of France's best-known economists. "Economic Policy and Growth in Europe"* was published in 2006 by the Conseil d'Analyse Economique, chaired by Prime Minister de Villepin. It says:
"economic integration has stagnated and no longer promotes growth. The Euro's creation has not produced the knock-on benefits expected... The inability of the EU to revive the economy turns investment away”
This damning verdict comes from the most ardent pro-EU country, which has imposed its will in countless EU negotiations.
The EU share of world GDP is expected to decrease from 35% in 2002 to 15% in 2050. Its share of world trade is expected to decrease from 18% in 2002 to 10% in 2050 (8) . Under one-sixth of our GDP is involved with EU trade; by 2020 only one third of our exports will be to the EU – only 10% of our economy will be involved with EU trade; the rest just carries the burden.
By contrast the UK has been one of the world's most successful trading nations since global trade began. Our exports outside the EU grew 45% faster than exports to the EU in 1999-2005. Other parts of the world are growing faster and will cope with the future far better. The sooner we leave, the quicker we will recover. We must not be dragged down by the world's fastest declining block. Try to find evidence of any net economic benefit in remaining in the European Union. There is none.
The EU was devised in the Fifties to solve the problems of the Forties. It has no relevance to the twenty-first century. Its reliance on Big Government, restrictive labour markets, state subsidy and ever-increasing regulation is outdated and counter-productive in a modern world of global competition, consumer choice and innovation.
1 National Institute for Economic and Social Research - "UK Jobs Dependent on the EU" 2000 by Brian Ardy, Iain Begg and Dermot Hodson.
2 Global Vision Perspective 9.4.08 - “UK-EU trade creates far fewer jobs in the UK than in the rest of the EU”, by Ruth Lea
3 Dr Martin Weale, quoted in The Times
4 ONS: UK Trade December 2010
“Growth, Growth, Growth”, Centre for Policy Studies, Nov 11
7 Gunter Verheugen, EU Enterprise and Industry Commissioner, in 2006
OECD Economic Outlook, Real GDP Growth 1993-2003, indexed on 1993=100: Eurozone Average - 123; UK - 133; USA - 138; Canada - 141; ;Australia - 145.
9 UK Balance of Payments "Pink Book" statistics
We will Leave the European Union - Give Us a Referendum