Category: European Union

EU Had The Most To Lose In Brexit

The Bank of England Governor Mark Carney was heavily opposed to UK’s European exit but has turned his opinion towards the latter after admitting Europe has the most to lose from the Brexit. In a meeting with the Commons Treasury Select Committee, Mr Carney said EU’s financial stability is threatened by a UK exit as UK’s financial services plug out of the system. With the country as the centre of European finance for many SMEs and multinational corporations, the Europe will lose once the Brexit pushes through.

 

Mr Carney said: “At the point of leaving, there will be capacity taken out because certain institutions are not authorised.” He said it would affect Europe more than the United Kingdom. Early during the Brexit campaign of both the Leave and Stay campaigns, Mr Carney said the Brexit will have a huge impact in the short term and could increase the risk of recession.

Instead of a continuing weak pound sterling, the UK economy expanded effectively after the Brexit. According to figures three months after the Brexit, UK consumers continue to spend as investors regain confidence in the country.

Mark Carney said the UK should make it a point to maintain market access even after the Brexit. Carney said the BoE’s move to cut interest rates effectively helped keep afloat the economy and remove the immediate adverse effects of the UK Brexit.

Merkel is The Only Remaining Voice In Europe

Populist Alternative for Deutschland (AfD) far-right party continues to gain supporters. Analysts said that it has effectively beaten German Chancellor Angela Merkel’s party in her own home.

According to some, it represents a great threat to German democracy as the country approaches its federal elections the next year.

The far-right party could quash Mrs Merkel’s chances of a fourth term. Analysts said the AfD could defeat Angela Merkel and it has gained influence without having a refugee or foreign face in sight. The experts also elaborated that it indicated the hollow nature of xenophobia.

Analysts said that the results could be shocking and embarrassing for Mrs Merkel. However, she does not have a figurehead of another party as a clear rival. Even if the AfD could gain strength, experts said without a possible figure, there is no chance the other party could win.

In both Germany and across Europe the polls are clear; the majority people do not want to live in the world of the AfD or the National Front. Only concrete successes at home – tackling the nitty-gritty issues of housing, healthcare and schools where migration and austerity pinches – will give leaders like Mrs Merkel the political credibility to tackle head-on the scaremongering and empty promises of the populists.

Europe Voices Out Want For Britain to Stay

Survey shows that 11,000 Europeans want Britain to remain. According to the Bertelsmann Foundation, about 54% of survey respondents said UK must remain with the EU.

In April, about 10,992 European citizens answered a survey. Majority of Europeans in the 28 member states said Britain’s departure with have little or no impact on their own country. About 25% believe their country would be gravely affected.

The survey was done in April before the Brexit’s ballooning issue.

Bertelsmann project manager Isabell Hoffmann said: “What we have seen in our polling is that while the mood in the UK is incredibly agitated, the atmosphere on the continent has been relatively calm. The baseline response we are seeing is that people in the rest of Europe haven’t really been shaken up by the Brexit debate.”

In a separate research by the Pew Research Centre in the United States indicated a sharp decline in public support for the EU across its largest member states.

About 38 per cent of respondents in France said they favoured the EU’s decisions. This was down 17 percentage points the previous year. EU support in Spain fell by 16 points to 47%.

Both studies point out that majority of EU’s nationals want Britain to stay in the bloc.

The EU had declared that if the UK should leave the European Union, it would be “harsher” for the UK as it may take more than seven years for the UK to negotiate a new relationship with the EU.

EU Referendum May Lead To Market Turmoil

Observers fear that the UK-EU referendum date may create a credit squeeze for the United Kingdom. The Bank of England had pledged to provide extra bank funding to ensure this would not happen. The move has increased fears that Britain could face fiscal destabilisation, which may unhinge its delicate financial markets.

On June 23, UK citizens will vote for the UK to stay in or get out of the European Union. For three days, the Bank of England will open its lending facility as a precautionary measure to help Britain’s financial sector from suffering an immense credit crunch. Two days before the referendum and a day after, the Bank of England will support short-term borrowing.

According to a Royal Bank of Scotland report on risks, the political ramifications of increasing economic and operational security may affect the referendum’s outcome.

“The referendum on the UK’s membership of the EU during this parliament increases economic and operational uncertainty. The result may also give rise to further political uncertainty regarding Scottish independence,” it said.

Barclays’ separate report indicates the UK is better with the EU:

ued its customers would be better off if the UK stayed in the EU, said last week: “In the UK, the referendum on EU membership gives rise to some political uncertainty and raises the possibility of a disruptive and uncertain exit from the EU, with attendant consequences for investment and confidence.

Europe Still Divided On Refugee Crisis Before Summit

A great number of European countries are sealing its borders, indicating that Europe’s unification on the refugee crisis is  significantly fragmented.

German Chancellor Angela Merkel is trying to salvage its open door-policy as Balkan routes see closed doors from growing numbers of EU countries.

Four anti-immigration eastern European countries demanded for new EU policies by the following month. Hungary’s zero-immigration might be imported to the Balkans to seal Macedonia’s border. This would clog refugee numbers in Greece until they are deported back to Turkey.

The planned bottleneck could cause a security and humanitarian emergency within days from Greece. It would be cut off from the Schengen free-travel zone due to the bottleneck. Greece’s failure to secure the maritime border for Turkish immigrants may have it face temporary eviction from Schengen.

Support for Merkel’s policy is fading. Austria announced stiffer border controls this February. It said it would limit migrant entry to 3,200 daily from Friday.

According to a European Commissioner, “you can’t have 20 EU countries refusing to take in refugees.”

Merkel’s policies are also under fire from Germans despite many voicing out providing support for refugees affected by war, terror and prosecution.

Turkish Judiciary now Under Government Control

Recep Tayyip ErdoganTurkey’s judiciary, which was previously independent of the government, has now been placed directly under the control of government ministers. The ruling party has defended the move as part of a crackdown following accusations that a group of lawyers planned to overthrow the current government. However, the opposition has been critical of the new legislation, describing it as “a modern coup d’etat.”

The lawyers in question allegedly plotted against the government, under the cover of investigating a corruption scandal. The corruption investigation in question involved several prominent businessmen and the sons of former government ministers.

Off the back of these allegations Recep Tayyip Erdogan, who has been Turkey’s Prime Minister for the past 11 years, introduced legislation that placed the Supreme Council of Judges and Prosecutors, the country’s premier judicial institution, under direct government control. As a result, the government can now appoint or dismiss judges and prosecutors, and enforce their decisions on the Supreme Council. Erdogan said that this was a necessary measure in countering threats to the government – an idea which the opposition question.

Many prosecutors and judges have now been dismissed by the government in connection with the allegations since the new powers took effect. The total number of dismissals reportedly reaches into the hundreds.

The move to place what was an independent judicial system under the direct control of the government has drawn widespread criticism both within Turkey and elsewhere across the world. The country’s opposition party, the Republican People’s Party, said that it granted “exceptional authority” to the justice minister. The Republican People’s Party’s Deputy Chair, Faruk Logoglu, accused the government of intending the legislation to “transform the Turkish state” into one that was undemographic and compared the result to a sultanate. He said that placing such power into the hands of the justice minister was simply “wrong.”

The human rights committee of the Law Society has also spoken out against the legislation. They have criticised the government’s introduction of this legislation, saying that it hinders free speech and challenges the Turkish judicial system’s independence. The committee’s chair, Professor Sara Chandler, said that ” The legislation passed earlier this week, to bring the country’s top judicial body under justice ministry influence, is unconstitutional and undermines the judiciary’s independence.”

Professor Chandler went on to say: “The Supreme Board of Judges and Prosecutors is responsible for appointing members of the judiciary, is an independent body and should remain so.”

 

Lending power to the people – EU referendum

Since the beginning of the economic crisis in 2008, UK citizens have grown discontented with the fact that their beloved country is a member of the Eurozone. Fast forward into the present and the discontent has reached hard to ignore proportions. As a result UK politicians have decided to ask the people for their opinion on the matter but this task will not be an easy one as it will face many hurdles until it will pass all the required bureaucracy.

The first step

James Wharton was the one who created the bill according to which by 2017 the British people will have to make their voices heard. The referendum bill already passed the first stage, known as the Commons stage with generous support from many members of parliament. However the hard part is yet to come as it will also have to pass through Parliament. Some voices claim that the referendum bill will face strong opposition in Parliament and that its future is uncertain. One thing that is certain though is that UK has grown rather fond of the referendums as they have had them for voting on the electoral system and the devolution for Scotland. This is a clear sign that UK trusts its citizens and is evidence that UK is a very democratic country.

EU Referendum

But why does the UK want to leave the Eurozone?

Leaving the Eurozone brings as many advantages as disadvantages; the problem is deciding which is more relevant for UK’s future. Among the reasons citizens of the UK want to leave the Eurozone we find that the most important reasons are related to spending and to get a grip on the country’s borders. More precisely, stop funding the EU budget and instead spend those vast amounts of money directly in the country and to limit immigrants from flooding into the UK. But there is also another reason which is often overlooked and which I consider to be the most important: regaining the national currency. If you would look closely at the EU member states which were affected be the financial crisis and analyse their recovery process you will realizes that the speediest recoveries belong to the countries with their own national currencies. Needless to say what series of advantages having your own currency has.

The people will have their say

It is hard to say for sure if the British citizens will take all the advantages and disadvantages into account when they will cast their vote but then again this is how referendums work. We can only hope that Parliament will state all the reasons why to stay in the EU and why not to remain in the EU and let the people decide for themselves what is best for them.

Demands for Cut to EU Budget

Leaders of the EU met in the latest two day summit to discuss the next seven years of the EU budget and spendings.  The summit ended however with no settlement between the 27 members.

For the tax year starting April 2010-2011 the British Treasury paid in more than £8 billion to the EU budget.  It is one among 12 other states that pay in more to the EU budget than they get back in the form of funding.

The UK’s David Cameron said to reporters- ‘”When we were last here in November, the numbers were much too high: they need to come down, and if they don’t come down then there won’t be a deal.” He added, ‘“Frankly, the EU should not be immune from the sorts of pressures that we’ve had to reduce spending.”

If the EU doesn’t reach an agreement by 2013 the budget would have to be agreed upon next year, which would put long term projects in jeopardy.  Concern has been expressed that further delays would hinder the opportunity for economic recovery, and the fact that a settlement is taking a prolonged period of time isn’t sending a good message to the rest of the members. A Downing Street spokesperson said it was “in our interest to do a deal” and insisted Mr Cameron was trying to reach agreement. Before formal talks began, Mr Cameron met European council president Herman.  Mr Cameron also had some conversations with other heads of government that are in the same position as he is, this includes: Angela Merkel (Germany), Fredrik Reinfeldt (Sweden), and Mark Rutte (Denmark).

In order to duplicate the cuts being made by national governments across Europe, the UK, Germany and other northern European nations want to lower the EU spending increases. France and Italy target investing as an important part of the EU, as investing is likely to create more jobs, and is better for the future.

With having the proposal for a real terms freeze rejected by MPs in October last year, David Cameron combated pressure to convey a real terms cut in EU spending.  The opposition were joined by many of Cameron’s Tories in defeating this – dealing a blow to Cameron’s policy on Europe.

 

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What leaving the EU would mean for the UK legal system

The vast majority of UK law originates from the European Union. It is estimated that 80% of law currently in action in the UK has derived from the EU, and therefore a British withdrawal would mean huge changes for the UK legislation system.

The signing of the Treaty of Lisbon resulted in a mechanism by which states could withdraw from the EU, as pre-2007, this was next to impossible. This treaty amended the EU founding treaties.

As the UK legislation is heavily derived from the EU, leaving the EU would have a huge effect on the system.  These impacts would begin with the ceasing of the Treaties (TEU and TFEU), which would include as part of those, the fundamental freedoms (movement of labour, capital and goods/services). This would result in the protection of UK citizens living in or intending to live in an EU state vanishing. Residents of the UK will require visas to visit member states, and the rights that derive from the fundamental freedoms and apply in UK courts will be taken from UK citizens.

The whole efficiency of judicial rulings, or case law, would have to be revisited. These were decided and confirmed after a preliminary reference procedure. These case laws are sometimes referred to the Court of Justice of the EU of a question regarding EU law, and this clearly could not occur following a British withdrawal.

Currently, national legislation in the UK is adopted to obey the EU Directives. This could potentially be repealed or amended, depending on which is more beneficial to the UK. Unfortunately, assessing the costs and benefits of keeping those provisions will be a huge and difficult task (given the great number of measures and the methods of how the UK has handled the EU Directive). Arguably, the Financial Regulation and Company Law would be the highest priority measures to be revised. But even these would take years, as revising them would simply add huge amounts of pressure to the workload of the UK Departments and Parliament. Taking on new measures and changing old laws just is not feasible given the current circumstances.

This article was contributed by the LawNinja.

David Cameron on European Union Referendum

In a speech directed at Britain and its future membership of the European Union, David Cameron said he would hold a referendum if he wins the next election. The speech given on Wednesday has had a mixed reception.

Cameron has again stated that Britain must hold a national referendum on whether the public want to stay in Europe, moving a lot closer to mentioning a date, saying using the mandate of the 2015 election he will go ahead with a referendum, this will appease some Conservative MPs and Euro-sceptics. Cameron believes that in the next couple of years that the EU “must agree on treaty change” to in fact to make the “changes needed for the long term future of the European Union”. Labour and the Liberal Democrats believe that gambling the UK membership of the European Union was against national and economic interest.

The House of Commons is likely to debate this in the coming days. Labour is saying that they could accept a referendum, but “not at the moment”.

Germany and France, two of the strongest economies in the European Union, also criticized the UK as taking an “a la carte” approach. Germany in particular asking for compromise from Britain, its Chancellor Angela Merkel asking for the UK to find “common ground” as she believes it is in their best interest for their economies to pick up. The United States also said they believe Britain is “stronger” because of the European Union membership.

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