19 November 2012

Gideon Rachman: Europe would lose if Britain left the union

A few eye-catching changes in Britain's relationship with Europe could alter the nature of the debate in the UK – and save both Britain and the EU from a mutually damaging divorce, writes Rachman in his FT column.

In Germany, where public opinion increasingly makes a crude distinction between law-abiding northern Europeans and the unreliable and indebted south, it is often noted with regret that both Switzerland and Norway have opted not to join the EU at all – and continue to prosper. The departure of the British, who have traditionally allied with Germany to make the case for the single market, would further weaken the northern European group. Some in France might welcome the departure of Britain, for that very reason. But even the French might come to miss the British, who tend to share their views on questions of national sovereignty.

Beyond the budget, the basic British objection is that the EU is involved in all sorts of things that are better left to nation-states – and that the flow of powers has, for decades, all been towards the centre. A repatriation of some powers from Europe would go a long way towards addressing that complaint – and would give the British government the arguments it needs to win a referendum to stay in Europe.

A good start would be the repeal of some job-killing social legislation – such as the working time directive, or the agency workers directive. A broader cut back of EU powers in areas such as education, health and safety legislation and regional spending would also be helpful.

In previous decades, repatriating powers would have been regarded as heresy. But the eurozone crisis provides both a need and an opportunity to rethink old certainties. Keeping the single currency going has already involved smashing some taboos. Northern European taxpayers are underwriting massive bailouts for the Greeks and others. The European Central Bank is proposing highly unorthodox policies that many Germans regard as downright illegal.

All this has been deemed necessary to keep Greece within the euro. So is it not worth making some less radical, less expensive, moves to keep Britain inside the EU?

© Financial Times