In its present form, the EU serves British interests very poorly. The time has come for us to finally take matters into our own hands.
But I don’t agree with the idea that we should simply withdraw now. That day may come, but surely not before we have given fundamental reform our best shot. Everything we do has to be to promote the UK’s interests, and then the referendum will finally settle the matter.
Those who advocate withdrawal ignore the risk that the actual process of leaving, potentially taking years to negotiate out of the complex web of EU agreements and treaties, would have a damaging impact on our economy. The ‘opportunity cost’ of leaving is also high – the UK is the biggest EU recipient of foreign direct investment – we are attractive to investors partly because we speak English and have good contract law, but above all because we are a foothold in a market of 300m people.
But fundamentally I don’t believe change in the EU is impossible. The eurozone crisis has made the status quo unsustainable for all EU members, whether ‘in’ or ‘out’. Fiscal integration and banking union are driving the eurozone countries closer together, and there needs to be a new relationship between them and the non-euro members. European leaders recognise this, as the recent agreement to introducing double majority voting in the context of European Banking Union clearly shows. This mechanism requires that a majority of euro members as well as a majority of non-euro members support a measure before it can be introduced. Politicians from around the EU have indicated a willingness to extend this mechanism across other areas in order to avoid non euro member states being disenfranchised in future by a eurozone caucus.
Right across Europe there is a new openness to reform of the EU. The Fresh Start Project, set up by Conservative MPs in 2011, has set out some major reform proposals in a number of areas, and we are holding meetings with other member states’ parliamentarians to discuss these ideas, and to understand their views. Our colleagues from across Europe are facing similar challenges to us: Germans are worried about the potential impact of migration from Romania and Bulgaria, the Poles are concerned about the impact of the working time directive on their health service, the Swedes face the dangers of being disenfranchised by a eurozone caucus. I believe that we can build the alliances to reform the EU, and to ensure that we remain globally competitive.
Britain should seek fundamental reform that returns powers to member states in areas of social and employment legislation, that creates a legal safeguard for the single market, that reforms the EU budget and cuts waste, that makes the EU more accountable to voters, and that focuses on measures to help the EU compete in the global race.
The local elections highlighted the dissatisfaction of voters with our current EU relationship, and the Prime Minister is right to set out a strategy of renegotiation followed by referendum. I think it’s possible to build a consensus behind that strategy and deliver the serious reform that offers the UK the best prospects of global success.
If Britain fails to achieve reform, then a referendum will let the people decide that the benefits of membership are outweighed by the costs. But we surely have to give it a chance.
Andrea Leadsom is the Conservative MP for South Northamptonshire and co-ordinator of the Fresh Start Group.
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