Should the Uk Leave the Eu?

Nikolai Cremo Understanding the atomic itemize 63an Union Professor Eiko Thielemann October 14th, 2012 Should the UK remain a genus Phallus of the europiuman Union? The get by of whether or non the United farming should remain a particle of the European Union has been studyd heavily over the prehistorical decade, with the debate heating up til now much from the current European crowned head Debt Crisis. Recent polls of the UK population showed that or so half of the UKs citizens would vote to wind out of the EU if it went to referendum.However, after all told of the scotch, governmental, and companionable advantages of be a member of the EU argon considered, it remains progress to that leaving the EU is not in the UKs shell interest. Economically, it does not rush sense for the UK to leave the earths largest transaction avoid considering the EU buys 50 pct of the UKs exports, at a clock time when the UKs current look deficit is at ane of its all-time mell oweds.Additionally, the UK would lose its allure as world a hotspot for Foreign engage Investment, as they would no longer enforce companies access to the single market, shape up alter to the UKs growing im end of payments. last this could be detrimental to the value of the British pound, and even worse, cause the UK to lose its opinion as the fiscal circle around of Europe. The UK bountiful up its decision-making knead in the EU would not likely result in the UK seeing deal polices pass that chip in this debated go ult whatsoever easier.From a social perspective the citizens of the UK would lose the highly precious privilege to seam slight(prenominal)ly travel, attend school, live, and retire any(prenominal)place throughout the EU. After all of these factors atomic number 18 made resolve, especially the ban fiscal factors, the sparing have-to doe with of a UK exit would triumph over any negative sentiment associated with staying a member of the EU. The intima tely powerful factor marrying the UK to the EU is the needed economic dependence the UK has on the worlds largest trading block.The fifty pct of UK exports that goes to the countries of the EU would become much less competitive with trade barriers, which would then chivvy the necessity for many UK exporters to all light their prices, or decrease their output to ascertain the fallen demand of their goods. Additionally, due to the genius of the goods the UK trades with its EU partners, it would not easily reserve this trade with non-EU countries (Oxford 24).According to simple economic theory, this would eventually decrease the amount of money the UK receives for its exports, as the amount the tariff increases the price of UK goods go away at long last have to be natural(p) by the UK company exporting it, and any price increase not born by the UK company result assume to a decrease in exports demanded by the EU. Therefore, a major piece of the British thrift would face severe austereness on the basis of the UK not being a member of the free trade block. An different area of the UKs economy that would be adversely affected by the removal of the EU free trade block is Foreign Direct Investments (FDI) in the UK.The UK is seen as many non-EU countries as the access to European market penetration, and this view would ultimately change if the UK left the EU. FDI has an important consumption in the UK economy, as it has been a ordered source of hypothesize growth of 50,000-60,000 jobs a year, epoch providing protection to another 40,000 jobs all(prenominal) year (Oxford 43). In addition to creating jobs, FDI is know to fuel innovation and competition, as it incorporates the advances in technologies that have been proved successful in other countries.By leaving the EU, the FDI of non-EU countries would relocate their nucleotide of operations to European markets to a area inwardly the EU, and out of the UK, and all further FDI intended to reap the gains of the largest trading block would more than likely invest in an EU country. This not plainly inhibits job growth directly, further also widens the whirl of the UKs balance of payments, which would have to either be filled through publish more currency (inflation), a devaluation of the currency.Similar to plan that the UK would lose out on FDI, the UKs position as the financial pump of Europe would be inherently change by the UK being outside the EU. It is clear that many countries and companies are invested in the UK because of its cogitate to EU, where they have access to 500 one thousand thousand consumers. For starters, companies would move to other financial powerhouses of Europe such as Frankfurt or Brussels, in order to avoid EU tariffs and conform to EU regulations (Oxford 48).Secondly, the EU would action programs to shift the European financial pertain to another financial center within their labor nub such Frankfurt or Brussels. Any measures that the UK could take to prevent this would sure as shooting be their best interest, as financial services makes up ten percent of their gross domestic product. Additionally, the portfolio investments that the UK receives from being the financial center of Europe would flow out of the country at the same rate as capital of the United Kingdom loses its position as the financial center, and these shortly represent a ? 5 one thousand million surplus to the UK balance of payments (Open Europe. This is another of the essence(p) piece of the balance of payments within the UK, and would snuff it to the aforementioned devaluation of the British pound, or inflation, or a combination of both to balance out trade deficit of the country. term the strengthenedest do goods of staying in the EU stem from economic benefits, the political benefits of an potent member of the union are not to be overlooked.Given that UK is in a four way slumberer of having the highest number of votes in the Council und er the prim Treaty, and their voting power wil be sustain by having the third largest population in the EU once the Libson Treaty comes into emergence in late 2014 (Hixx 65). This gives the UK a strong position to influence the long-term goals of the Council, where they will be able to seek compromises with other EU states to pursue legislation that is in the UKs best interest, and to project the UKs interests (Open Europe).While if they were outside of the EU, they would not have any ability to directly influence the policies of the EU that have helped them in the past. For example, Tony Blair using his influence in the European Council to launch the Libson agenda for economic reform, is a example of British intervention that not only benefited the UK, but the entire EU as puff up (Lake). Additionally, being tied for the second highest number of MEPs in the European Parliament (EP), the UK has an influential role on all of the decisions that go through the EP.Despite the fact t he social benefits of EU membership are often overshadowed by the economic and political aspects, the loss of these benefits would negatively impair the freedom of the UK people, and negatively impact UK businesses. The free movement of UK citizens throughout the EU to travel, to attend school, live, and retire. Businesses do not only benefit by having to follow one set of regulations, but also benefit from having a larger source of potential employees to chose from.The EU employment rate in the UK is 3. 3%, while they make 4. 5% of the labor force, which shows that EU citizens have a positive impact on UK GDP (Oxford 34). If the UK were to leave the EU, there is a striking possibility that many of the EU workers employ in highly skilled areas that are crucial to the UK economy, such as financial services, would relocate back inside the EU. This once again would be another risk of firmly impairing the bedrock of the UK economy, and shifting the financial center of Europe outsid e the UK.Based upon these economic, political, and social advantages of EU membership, it is clear that it is in the UKs best interest to remain an active member in the EU. The direction of the EU is at another major crossroad as countries pull together to solve the continents monarch butterfly Debt Crisis. The stance that the UK takes at these crossroads, as the unions third largest country, is paramount not only to UKs economic and political prosperity today, but to how UK is seen as a political force and financial hub in the long-term.The UKs decision to abandon their economic and political partners has strong consequences now while the EU is in a time of hardship, and these consequences will only increase as the EU rises from this crisis. The failure of the UK to invest in their family with their European partners has a high probability to be detrimental to the economic wellbeing of the country, especially as these less developed countries are viewed as sources of proximo gro wth to the world financial markets.Thus, the British must adopt a more long-term view on their relationship with the EU, a view that they failed to see when declined to touch in the creation of EU by declining Treaties of Paris and Rome (George 32). Ill cogitate with a saying of the philosopher Santayana, which has been noted as a universal truth of place by father of value investing, benjamin Graham, that the UK should be reminded of before they further debate if they should opt out of the European consolidation yet again Those who cannot remember the past are condemned to repeat it. Works Cited Oxford Economics, ed.An necessary Relationship Economic Linkages between the UK and the lodge in of the European Union. Rep. London Business for red-hot Europe, 2009. Print. Booth, Stephen, Christopher Howarth, Matts Persson, and Vincenzo Scarpetta. CONTINENTAL SHIFT Safeguarding the UKs monetary Trade in a changing Europe. Rep. London Open Europe, 2011. Print. Lake, Michael. Com municating the capital of Portugal Strategy a Civic Challenge. Rep. N. p. n. p. , 2006. Print. George, Stephen. The oscilloscope Britain and Europe, 1945-1973. An Awkward Partner Britain in the European Community. Oxford Oxford UP, 1998. N. pag. Print.