Common Market to European Union. It has been pointed out by many Brexiteers that the UK population originally voted to join a ‘Common Market’. The Common Market referendum in June 1975, related to the UK joining a common market in Europe. This was a European market free of import or export tariffs between countries.
This was a free trade union which slowly slid into a political union with common laws and a common currency. The fact that the UK refused to adopt the Euro gave notice that the country was not as interested in a political union as the countries of mainland Europe. In fact, it is doubtful if British citizens would have voted for the EU as it is now.
There was no talk then of a common judicial system or of a common currency. It is almost certain that such a vote would have failed. There is a feeling now among much of the UK population that their country is being taken from them. UK laws being overruled by European courts, and increasing European bureaucracy has turned many away from the EU.
A political and judicial union seems a step too far for many British people. Just as a common market to a European union is too big a step. Some believe this for personal reasons over political issues throughout 20th century Europe. Others because, being an island nation, the UK has always been separated geographically from mainland Europe. However, some also feel it essential that we remain in the EU for trade and security purposes.
The general drop in the value of sterling has not had the impact on manufacturing as many would have hoped. Since August 14th, the pound has fallen by 2.57% against the dollar, and by 3.6% against the euro. The British exporting industry has been unable to capitalize on this. Not only that, but global trade has been improving while UK exports have slumped even though it enjoyed these favorable exchange rates.
It’s not only with the EU that British exports have been flat. As noted above, the pound has been falling against the US dollar as well as against the euro. It would be expected that the UK would be able to export easier to the US – but no! There appears to be a general lack of impetus with the British exporting industry at the moment. Perhaps it is the Brexit effect or perhaps something else. Who knows – but the UK manufacturing needs a kick up the rear end.
Another issue with a falling pound is that the UK’s Brexit bill is rising with the strength of the euro against sterling. When the UK eventually does leave the EU, it will cost more to do so. Business investment has also all but stopped. Companies have been holding back investment until the situation is clearer.
The sooner the British government makes its mind up on how it is to negotiate Britain’s exit from the EU, the sooner the UK economy will settle down. The step up from a Common Market to European Union is likely one too far for the average British citizen at this time. There is a lot of PR work to be done to overcome this current attitude against Europe by many people.
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