Nature of the EU –
4 main features of EU:
- Customs union – there are no tariffs (import taxes) on any goods & services being
traded between member states. Also means that member states cannot have
separate trade agreements with countries outside EU. All external trade
agreements apply to all members.
- Free, single market – there can be no barriers to the free movement of goods,
services, finance, labour, or people between member states. Citizens of a
member state are citizens of EU & can live anywhere in the Union & enjoy
common citizenship rights.
- Partial political union – laws made by institutions of EU with apply throughout
the Union – ensure that all members are on a level playing field using the same
laws.
- Some are part of monetary union – use the same currency (euro).
EU based on principle of four freedoms of the single market – freedom of people,
labour, capital, and goods & services.
Political impact of the UK’s decision to leave EU –
2016 EU referendum – 51.9% leave / 48.1% remain.
2 PMs forced to resign over the issue – Cameron immediately after referendum &
May after failing to win parliamentary support for her Brexit deal.
Both governing party & opposition became deeply divided over next steps – made it
difficult to pass Brexit legislation.
Some MPs called for 2nd referendum & others for a soft Brexit.
- Soft Brexit – UK to keep as close a relationship with EU as possible, continuing to
be a member of the customs union & single market.
Pro-Brexit faction of C party supported a ‘clean break’ or hard Brexit.
- Hard Brexit – UK to leave customs union & single market & not be subject to EU
rules or to decisions handed down by European Court of Justice. EU Withdrawal
Act & subsequent trade deal with EU.
2 GEs after referendum (2017 & 2019). 2019 restored a Commons majority to
Conservatives with a mandate to ‘get Brexit done’.
EU Withdrawal Act – January 2020 – UK leaving EU’s political institutions.
EU & UK agreed to trade deal (Dec 2020) which was approved by parliament.
Different trading arrangements for NI.