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The EU costs Britain from £165 - £170 billion every year

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What the 'Remoaners' don't tell you about staying in the EU and what the OBR left out of their forecasts

How much does the European Union cost Britain? *

The UK is roughly 11% of GDP – about £165 billion to £170 billion – worse-off every year because it is a member of the EU.

It should instead be an independent sovereign nation, like Norway and Switzerland on our own continent, or Canada and Australia in the wider English speaking world.

The main reason for the heavy cost of the EU is the damage that misguided EU ‘legislation’ (in the form of the directives and regulations that constitute the acquis communautaire) is doing to British business. Small-and medium-sized businesses have been particularly disadvantaged, as they cannot cope with the paperwork, bureaucracy and restrictions.

Other costs include the direct fiscal cost, the costs of resource misallocation, the cost in lost jobs, the costs of waste, fraud and corruption, and the potential costs from the possible failure of EU institutions and ‘benefits tourism’. Each of these is covered in a chapter in the following publication.

The breakdown of the 11% of GDP is shown in the box below.

Nature of cost % of GDP (In all cases, see relevant chapter for detailed argument).

* Direct fiscal cost  Relatively easy to quantify from official publications and balance-of-payments data; concept is of gross payments to

EU institutions over which UK government has no further control.

* Costs of regulation Reduced employment due to ‘Social Chapter’-type legislation, cost of renewables agenda and financial regulation, businesses closed because of substance and procedure regulations.

* Costs of resource . CAP long recognised to cause large resource misallocation. misallocation

* Cost of lost jobs Open UK labour market from 2004 allowed in 700,000 Eastern Europeans, taking away jobs of over 100,000 UK-born people

* Costs of waste, CFP involves fish discard and effective ‘gift’ to other nations of fraud and corruption fishing rights in UK territorial waters, but cost under 0.1% of GDP; waste under pillar 2 of CAP; waste of over-prescriptive water standards; abuse of UK student loan system

* Unforeseen ¼ Costs of ‘health tourism’ and ‘benefits tourism’, plus some Commitments allowance for possible recapitalization of EU institutions

Total 11 Conclusion: the UK is about 11% of GDP worse-off because of its membership of the EU.

The UK can leave the EU, and retain strong and vibrant trade links with the EU. Outside the EU, we can put in place the free trade agreement with our European partners, which is all that most people in Britain wanted when we joined the then ‘Common Market’ in 1973.

 

 

NB

* The above figures are all taken from How Much Does the European Union cost Britain by Tim Congdon. Click here to read the full document.

Tim Congdon has accumulated a long record of commenting on public policy issues, including writing sympathetically about (and deploying in his own analysis) the monetarist approach to macroeconomic policy. He has considerable experience working in the City of London and was the founder of the macroeconomic forecasting consultancy Lombard Street Research. Between 1993 and 1997 he was a member of the Treasury Panel that advised the Conservative government on economic policy, sometimes referred to as the "wise men". Since May 2008, he has been the economic correspondent for Standpoint magazine.He set up the economic advisory group International Monetary Research Ltd. in 2009; it applies Congdon's monetarist approach. In January 2011 Congdon became the Honorary Chairman of The Freedom Association. He is on the Advisory Council of Reform. (Source: Wikipedia)

 

 

Norman Taylor, November 2016

normantaylor@email.com

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