Should Britain Leave the EU?
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Should Britain Leave the EU?

An Economic Analysis of a Troubled Relationship, Second Edition

Patrick Minford, Sakshi Gupta, Vo P.M. Le, Vidya Mahambare and Yongdeng Xu

This second edition brings up to date a thorough review of all economic aspects of the UK's relationship with the EU, which also puts it in the political context of the upcoming referendum. It notes the intention of the EU to move to 'ever closer union' and the nature of the regulatory and general economic philosophy of the dominant countries of the EU whose writ is enforced by qualified majority voting. The book highlights the UK dilemma that, while extending free markets to its local region is attractive, this philosophy and intended union are substantially at odds with the UK's traditions of free markets and freedom under the common law. BOOK LAUNCH: http://www.iea.org.uk/events/launch-new-edition-of-should-britain-leave-the-eu
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Chapter 3: The cost of the euro

Patrick Minford, Sakshi Gupta, Vo P.M. Le, Vidya Mahambare and Yongdeng Xu

Extract

In this chapter we consider the costs of the euro for the UK (and the related issue of bail-out costs); this is a major cost of being in the EU since it is now mandatory for members of the EU to join the euro at some time. While the UK currently has an opt-out from the euro, this is inconsistent with the general objective for the EU of ‘ever-closer union’. Like our opt-out from the Social Chapter, which we were always under pressure to abandon in the interests of European unity and was abandoned by Labour after obtaining power in 1997, the euro opt-out is not envisaged by our EU partners as being viable in the long term. Past experience has shown that the way the EU evolves is something over which we have little control. So we assume here that if we stay in the EU we will eventually agree to join the euro. We begin with some discussion of how the introduction of the euro has derailed the EU project and led to endemic crisis. The euro, as we have seen, has therefore become costly for those in the EU who have so far joined it. We then go on to consider in detail how the UK’s interests are affected by joining the euro.

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