The Relationship between the UK and the European Union - Essay Example

?UK SHOULDN'T LEAVE EUROPEAN UNION The purpose of this report is to identify the factors which have made the European Union so strong. The strategic importance of UK to be a part of the European Union is also discussed. The factors have infuriated UK to think of resigning from this union and the policies which are beneficial for the alliance as a whole. This report has specifically highlighted the things which are unacceptable for the British reign. The conclusion which is drawn after the discussion is that UK should not break its alliance with the European Union. The EU is a strategic alliance of the member countries formed to deal with the social challenges of the economy. British are of the fact that the weak stance of the Euro zone due to the economic hardships is burdening UK. They are paying for the stability of other countries which are the members of the EU. The cost of this union is very high and the heritage of UK is at stake due to the policies which have been enforced on Britain by EU. This report suggests that UK should remain a part of the EU to ensure a more stable future and dominance on the Euro Zone. This will improve its economic strength and the power of dominance which has been a part of the heritage of UK. INTRODUCTION EUROPEAN UNION (EU) The European Union is an alliance between some of the European nations to support each other in maintaining the stability which arise due to the economic or the social / societal hardships in an economy. The European Union came into existence in the year 1993. A treaty was signed by the members called the Treaty of Maastricht. The base of this alliance was formed in 1958 by European Economic Community (EEC) which was the result of signing of the Treaty of Rome. A BRIEF HISTORY OF THE ENGLISH AND THE EUROPEAN NATION United Kingdom (UK) and the European Union (EU) have a history which goes back in time. Both the regions have their own significant importance with respect to the business situations. UK operates under the currency of British Pound and the EU states use the standardised currency Euro all across the nation. The history of these states has always been complicated. The current scenario of the states is making problems for the strategic alliance between both the countries. The economic turmoil and the period of recession are forcing a strategic alliance between both the nations. UK has always been on the stronger side due to the British reign and the supremacy of the queen. The strategic personnel of UK and the think tanks which make the strategic decision of the countries progress are of the view of breaking the strategic alliance with the EU. In this report the areas emphasising on the importance of this alliance have been discussed. The current economic factors which are the main detrimental factors of the problems will also be discussed in this report. The economic recession has brought hardship on many nations. We will see that what strategies have been adopted by the UK & EU states. UK wants to break the alliance which has been developed. The factors which have led behind this decision and the study that whether this decision will be or will not be feasible for the states of this region or not. Breaking an alliance at this point may cause a disruption in the complete system and may require the re-establishing of the strategic goals which the region wants to implement. Whether Britain should or should not leave the European Union. If not then what are the factors which will affect the states if this alliance breaks. The alliance would have brought some sort of advantage to the UK and EU nation both. The recommendations should be analysed after the detailed study of the topic to present a best possibly applicable conclusion. A POLICY POSITION- UK SHOULDN’T LEAVE EU The votes in the Parliament have emphasised on the point that Britain does not plan to stay a part of the European Union. The current course of action of the representative is showing a trend that Britain will leave the EU by the time the next parliamentarian session ends. The responsible authorities on both the sides are of the view that there is less solidarity left in the alliance between Britain as being part of the European Union (Kellner, 2013). A few years back the member of the EU were of the view that the alliance was most beneficial for Britain itself. The crisis and the financial turmoil in the area of the euro zone have changed the thought of the people. The economic turnaround will pose a threat to the sovereignty of the region. The effect of which are believed to be very deep routed. The role of the governments which are functioning in the area of the euro zone are observed to be losing the authority and hold (Warner, 2012). CURRENT SITUATION OF BRITAIN RELATIONSHIP BETWEEN UK-EU The relationship between the UK and the EU has been debatable for a long period of time. The political reign of Britain under the queen has always been more dominating. Britain has always sought political and the legal independence in the decisions which they wish to implement. The method of reign of British rule can be called as the monarchical reign. The decisions of UK show that it seeks in performing separately from the rest of the European region. The disputes of Britain with the other states of the European Union have been a significant history. The adaptation and the collaboration with the states of the EU cannot be easy for them. The ties between the Europe and Britain will prove to be more beneficial for Britain. The point of view of Britain is that the imposition of the deprived laws and a possibility that the currency may change from pound to euro. The free for all policy of the treaty has also resulted in a negative outcome for UK. The offerings of the EU have corrupted the thinking of the politicians of this area. UK & EU both have formed the alliance for their respective benefits. With the crisis which has brought the clouds of hardship on the Euro zone has made UK of the view that it is being used. This is not the fact. UK is also threatened by the economic conditions and instability of the Euro zone that it may not be push towards adapting or towards changing its currency from the Great Britain Pound to the Euro for the purpose of stability. With the alliance and being part of the EU many of the regions like Spain and Portugal etc. have flourished the economy. This is a reason which has made the British in pushing itself to separate from the EU. UK has a whole history which can be related to the European region. The leading attitude and the quest for dominance of UK is pushing it to break the alliance with the European countries (Noble, 2007). In order to evaluate the feasibility of being member of European Union it is important to compare and analyse the cost and benefits associated with EU trade. These can be assessed as presented in the image below: (Booth, 2012) There have been different views regarding the participation of UK in European Union. Some of the people are of the view that UK should leave European Union; on the other hand there are some people and analysts who are in favour of UK being the member of European Union (BBC News, 2012). The results of a recent referendum in this regard show that only one out of the three persons will be voting for UK to be a part of EU (Pickard, 2013). Some of the results of this referendum are shown below: (Pickard, 2013) REASON FOR BRITAIN’S DESIRE TO EXIT THE EU UK is of the view that it is being misused by the futile laws of the EU. UK feels that it is bearing the expenses of development of many of the countries which are part of the European Union. There are reservations regarding the political unity and the trade unions which were signed between these countries. The dilemma of this region is that Britain has never been recognised as one of the integral parts and has not been acknowledged for the acts of its performance. The state is of the view that their sovereignty is being affected and that their cultural heritage is being damaged with the passage of time (Pollar, 2005). To unite there must be consensus between the two nations. There is no give and take in this relationship according to the British officials. In fact they feel that they are the ones making the major contribution for this relationship (Noble, 2007). After the war Britain has also reinforced its thrive for separation. The familiarity of each other’s culture and other traits such has their familiarity to the languages have decreased the trend of the sense awareness of the regions. The British have always felt that they are superior to the others which have always been a base for the discomfort of the alliance. The British have always been the dominators and are always of the view of leading. The leadership stance which the British tend to incorporate is very high. It is very hard for any region to adapt to the dictatorial attitude of leadership in all the decisions. The major issues which have lead for such a severe stance to be taken by the British is the proposition of the centralised currency that is the Euro and the Shengen Visa agreement which has been proposed by Europe. The issues of discontent between UK and EU are so ignited and self centered that it has become hard to predict that whether or not the regions will chose to go their own separate ways and break the collaboration that is between them. The heritage of Britain is also one of the main dominating factors which have leaded it to break the union. Britain is of the view that its heritage is being spoiled because of the treaties. The islands of the region have suffered significant damage and that the fish breed of the region has also been affected by the treaties which have been made between the regions. If such treaties had not been signed the heritage of Britain would not have been badly damaged (Voyles, 2013). Britain also feels that it is the major contributor for the economic stability which came in the region of Spain and Portugal. It also thinks that the proper acknowledgment for this major contribution was not given to them and that the European region itself benefited from this contribution of UK. Apart from that in many other places the people feel that they have not been given proper credit for the contribution which the government has given and that they think that this union must end. This is because of the thinking that this union is less beneficial and is more of a liability. If the actual facts are referred than it can be seen that this is not the situation. The association has been beneficial for the both. The image presented below presents some of the points and scenarios which are mostly likely to occur if UK leaves EU: (Voyles, 2013) REASON FOR UK TO REMAIN A MEMBER OF EU If the situation is carefully analysed then it can be seen that Britain’s relationship will have to change with Europe. This will be the way with which both the regions will be able to progress. After all these years of a relation between the two regions it does not seem feasible that this relation may be ended. The change at this point will bring a change in the fundamentals of the economy. The Euro economy is on the path of destruction economically. If the plug is plugged out to diffuse this relationship then the European economy will suffer large amount o f damage. If Britain stays put then the Euro zone will have to accept the proposition of the British government and it will have the leading or the controlling position which it has always desired. Leaving the EU at this point in time will spoil the investment which has been supported by the major contributions of UK. If UK successfully accomplishes the challenges of the current economic time and it also succeeds in holding a sustaining position then the future strength of the British side will have gained a lot of significance (Bruton, 2012). When the depression will hit the Euro zone at that time UK will be in a strong position to dominate and pursue the relationship with the new terms which will help it in gaining an advantage over the whole region. The major dominator of that new region would be Britain itself. A control over the single European market is a big investment and if this dominance can be attained the economic position of UK will boost very high in very less time. Britain will become the part of the formulator of the rules rather than just the acknowledger of those rules. The quest of the economy towards a rule of single currency in the whole region has forced the unlike behaviour of the authorities (Ash, 2013). The budget allocation is still rising with the passing time. This is because the effect of inflation has increased the expenses and the hardships of these deprived areas. To maintain the allocation in those areas EU has allocated a major part of the portion for the stability of these areas. The need and the time suggest that Europe is on a weak platform and that the British must hold their position to acquire future dominance. The only requirement of time is to be patient and to abstain from any such hasty decisions (Dominiczak, 2013). THE ADVANTAGES OF JOINING EU With the passage of time the size of EU is increasing. The number of the member countries which have joined EU is increasing with the passage of time. Bulgaria and Romania joined the union in the year 2007. There are ongoing treaties between Croatia, the Former Yugoslav Republic of Macedonia, and Iceland etc. The benefits of being a part of the union are the degree of integration between the nations. The member economies get the rights of free trade amongst the members, trade policies and the custom unions are formed for the benefits of the whole economic region and a single market for the products homogeneity along with the free movement of the goods, capital and labour (Watt, 2012). Besides these the benefits of being a member of EU is the formation of the Economic and monetary union. This is the standardisation process of forming a common currency amongst the member countries and a regularised monetary system for the complete region. The implementation of the above ensures complete economic integration. This will bring harmony and growth for the region and will reduce the economic hardships to regularise the fiscal policy of the region (Borger, Traynor, and Watt, 2013). Integration Process Defined According to Tinbergen (1954) there is negative and positive integration. Negative Integration is the process of removal of barriers amongst the nations and Positive Integration is the formation and the implementation of new policies to institutionalise and bring homogeneity in the entire system. EXAMPLE Recently the member countries of EU are promoting domestic consumption to support the producers. This process indirectly benefits the Euro zone as a whole due to the usage of the standardised currency. This also benefits the domestic employment rate because locally manufactured goods are preferred more to the imported products. Discipline improves efficiency and the economic success of that region. The pressure to increase the domestic sales and the free trade benefits with the neighbouring nation encourages the members to form comparative advantage in their products to encourage the sales. The purpose of the policies of EU is to help minimise the cost and form harmony for the members. NEW MODEL FOR UK MEMBERSHIP IN EU Some of the analysts are proposing new membership model in European Union, in order to justify the decision of staying in European Union. According to this new model, UK should consider to continue to be part of the European Union in the domain of single market for different goods and services and of different customer unions of EU. On the other hand, UK should go for pick and mix model in regard to other domains of the policy proposed by EU. This new model will allow UK to avoid all non trade cost associated with being a member of EU and at the same time will make sure that UK remains a vital part of the single market trade. This new model in presented in the image below: (Booth, 2012) RECOMMENDATIONS The conclusion which can be drawn from the study of the points discussed in this report is that leaving the EU will not be a good option for UK. The stability of the region is under the impact of an economic meltdown. The policies and the plans which it has are such fruitful that other nations are trying to join into this alliance. If Britain leaves the alliance the farmers would lose ?2.7 billion in EU subsidies. If Britain leaves the trade balance will be affected very badly. This will affect the exports routine by a mere 3%. This will also affect the exchange rate. The British dairy export prices will hype up with a tax increase of 55%. The hype of tariff on some of the products will increase by a mere 200%. The price hype will affect nearly all of the industries and will make trade functions very costly. The benefit of the exit would be cashed out by the regions like China and India. The increase in the prices will attract the customers to seek the products from the producers like China and India. The exit of UK will take years and decades to re-stabilise the trade functions and to regain the sustainable position again in the market. The allocation of the fixed cost will also take a significant amount of time. If this alliance breaks Britain will have less diplomatic influence on itself from other regions and the disengagement from the rest of Europe will make it a more influential ally. In the same contrast the detachment of UK from EU will weaken it in terms of defense. To avoid the imbalance of the economic conditions within the state it can be concluded that UK must not leave the EU. The investment incurred in this region over a period of time by UK is far greater. The economic situations are showing the chances of an imbalance which could arise in the economy. It would be most fruitful if UK does not end its membership with EU states. The instability of the economy will ensure that the problems will increase for both if the alliance breaks, the trade positions will and the fixed cost capital incurred will also be affected very badly. CONCLUSION The conclusion which can be drawn after the study of the discussion is that UK should not leave EU. The benefits of this union are the reduced trade barriers. If this union breaks the fixed cost which has been incurred will reduce with the passage of time. Both the regions are associated to the benefits of this union. The businesses of the region will be affected very badly. The incurrence of the fixed cost will increase resulting in decreased profits. The trade stability which has been developed will be disrupted and it will take years and decades to regain its position in the markets. Many businesses which are currently functioning in UK and EU will face substantial losses because of this break up. Sustaining this alliance will give UK an edge. This will provide a chance of dominance for UK on the entire region. Its strategic strength will also improve with the passage of time. REFERENCE Ash, T. (2013). From outside, it’s clear why Britain has to stay in Europe. The Guardian. Available from http://www.guardian.co.uk/commentisfree/2013/jan/23/why-britain-stay-europe-cameron-speech [Accessed 7 May 2013] BBC News. (2012). Viewpoints: how experts see UK role in EU. Available from http://www.bbc.co.uk/news/world-europe-20412306 [Accessed 7 May 2013] Booth, S. (2012). Trading places: is EU membership still the best option for UK trade? 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Available from http://forbesindia.com/article/special/uks-relationship-issues-with-the-european-union/34715/1 [Accessed 7 May 2013] Warner, J. (2012). Britain shouldn’t jump the gun on leaving the European Union. The Telegraph. Available from http://www.telegraph.co.uk/news/worldnews/europe/eu/9648509/Britain-shouldnt-jump-the-gun-on-leaving-the-European-Union.html [Accessed 7 May 2013] Watt, N. (2012). Britain should stay in EU, says report by Eurosceptic thinktank. The Guardian. Available from http://www.guardian.co.uk/world/2012/jun/10/britain-stay-europe-eurosceptic-thinktank-report [Accessed 7 May 2013] Read More