Making the Pieces Fit: Reforming Britain’s relationship with the EU

Instead of allowing diversity and competition between member states, underpinned with the use of courts to prevent trade barriers, the EU has at its core a centralising, harmonising agenda. This risks raising the overall level of regulation higher than is necessary and embedding systemic risks. If the UK votes to remain in the EU, Britain should focus on changing the overall institutional structure in a more free-market direction. This agenda should focus on institutional change, rather than the repeal or refinement of particular directives. Alternatively, it will probably take a long time for Britain to disentangle itself from the EU policy. Moving towards a more classical liberal Britain is therefore a long-term endeavour. It seems likely in the event of a Brexit that the government and civil service will push for the UK to join the European Economic Area. This brings with a repatriation of some powers, but does not fully restore control across a range of economic areas. To realise the true gains from Brexit, the EEA must, in these circumstances, be very much a transitional arrangement.