EU spells out conditions for single market access to Britain

[webfact]

EU spells out conditions for single market access to Britain
By RAF CASERT and GEIR MOULSON

BRUSSELS (AP) — European Union leaders drew a stark line along the British Channel on Wednesday, telling the U.K. that it cannot keep valuable business links with its former continental partners in a seamless single EU market, if it doesn't also accept European workers.

The challenge cuts to the heart of the British vote to leave the bloc following a virulent campaign where migration from poorer EU countries was a key concern. It also sets the scene for the complex departure negotiations facing departing Prime Minister David Cameron's successor, for which nominations opened in London Wednesday.

Meeting for the first time without the U.K., the 27 other EU nations set out a united strategy to face the next British government which will seek to salvage as many of the EU rights as possible while reneging on a maximum amount of obligations.

They emerged from the summit insisting that the "four freedoms" central to European unity are indivisible: the free movement of people, services, goods and finances.

In Cameron's absence, the most palpable remaining link to Britain at the summit was the English language used. The remaining presidents, chancellors and prime ministers showed a firm common resolve, committing to be "absolutely determined to remain united," EU Council President Donald Tusk said.

The leaders sought to dispel any notion that the referendum result will amount to their Waterloo.

"With a disunited United Kingdom, we need a united Europe more than ever," Luxembourg Prime Minister Xavier Bettel said.

Tusk convened a special EU summit on Sept. 16 in Slovakia's capital Bratislava to work out a plan to keep the EU united. There's a widespread sense that the post-war project to foster peace via trade has become too bureaucratic and undemocratic with not enough meaning for its 500 million citizens. The initial EU founding nations in the west lean toward a tighter, closer union, while newer nations in the east want to keep more control with national governments — notably of their borders.

French President Francois Hollande warned that allowing the status quo to continue would benefit populist forces that seek "the end of Europe." France is among EU countries now facing calls for referendums on quitting the bloc, mainly from the far right.

German Chancellor Angela Merkel said the lesson from Britain's departure isn't necessarily either deeper integration or returning more powers to national governments. She said Wednesday: "this is not about more or less Europe as a principle, but about achieving better results." She said that combating youth unemployment, for example, could involve both scrapping EU directives and deepening European cooperation.

"The coming weeks will be decisive," Hollande said. "Europe must show its solidity."

That will be tough when it comes to immigration. Central European nations led by Hungary refuse to accept imposed EU refugee quotas, and countries further north have all tightened border controls in response to the arrival of more than 1 million migrants last year. Britain is more concerned about EU immigration, since its strong economy draws hundreds of thousands of workers from other EU nations.

The shock British vote has roiled markets and will rob the EU of its richest financial market, biggest military power and a diplomatic giant. It could also prompt an unraveling of the U.K.

Scotland's First Minister Nicola Sturgeon met Wednesday in Brussels with European Parliament President Martin Schulz and the leader of the EU executive, Commission President Jean-Claude Juncker. Scottish voters overwhelmingly chose to remain in the EU but were drowned out by English voters. Sturgeon has indicated there may be a new referendum on Scottish independence.

"It was a good opportunity for me to set out Scotland's position and Scotland's desire to remain within the European Union and to protect our relationship with the European Union," Sturgeon said after meeting Schulz. She added: "I don't underestimate the challenges that lie ahead for us seeking to find a path."

In London, nominations opened Wednesday to replace Cameron as leader of the Conservative Party, with Work and Pensions Secretary Stephen Crabb the first official contender. Former London Mayor Boris Johnson and Home Secretary Theresa May are also expected to run.

The economic fallout from the vote has been severe. Ratings agency Fitch expects growth and investment in Britain to fall next year due to uncertainty over the exit. Some businesses are putting investments on hold and Fitch said "there is little doubt that the U.K. referendum vote in favor of leaving the EU will take a significant toll on the economy."

Vodafone, one of Britain's biggest companies, will consider moving its group headquarters because of the vote. The company, which says a majority of its customers are in other EU countries, said in a statement Wednesday that EU membership had been an important factor in its growth, and that free movement of people, goods and capital were integral to any pan-European business.

"This is the world's fifth-biggest economy and 15 to 17 percent of the European Union's gross domestic product, and if this country leaves the internal market .... then of course that will be a difficult situation," Merkel said.

___

Associated Press writers Jill Lawless in London, John-Thor Dahlburg, Lorne Cook and Angela Charlton in Brussels contributed to this report.


-- (c) Associated Press 2016-06-30

[smedly]

I don't see and issue with this, I believe some people are getting confused with the immigration issue and the movement/influx of refugees from none EU countries

What the UK (and the rest of the EU member states) need to address are the serious flaws in the benefits entitled to EU immigrants who are entering the UK without jobs, the UK seems to be more attractive than any other EU state, that is were I think the main issue is, fix it and the problem by in large goes away.

Review how people coming to the UK qualify for benefits, unless they have a job for a certain length of time (say a year) then their home country is the only way they get paid any sort of welfare and if they fail to get employment within a certain timeframe then they must go home and start again.

Welfare paid to immigrants remains the responsibility of their home countries unless certain criteria is met....end of problem

[SgtRock]

I don't see and issue with this, I believe some people are getting confused with the immigration issue and the movement/influx of refugees from none EU countries

What the UK (and the rest of the EU member states) need to address are the serious flaws in the benefits entitled to EU immigrants who are entering the UK without jobs, the UK seems to be more attractive than any other EU state, that is were I think the main issue is, fix it and the problem by in large goes away.

Review how people coming to the UK qualify for benefits, unless they have a job for a certain length of time (say a year) then their home country is the only way they get paid any sort of welfare and if they fail to get employment within a certain timeframe then they must go home and start again.

Welfare paid to immigrants remains the responsibility of their home countries unless certain criteria is met....end of problem

The answer is very simple.

Change UK Law to make ALL benefits contributory based with a 5 year minimum contribution. For everyone.

[razer]

Interesting how the media's far right stretches all the way to those who are moderate centrists.

[smedly]

I don't see and issue with this, I believe some people are getting confused with the immigration issue and the movement/influx of refugees from none EU countries

What the UK (and the rest of the EU member states) need to address are the serious flaws in the benefits entitled to EU immigrants who are entering the UK without jobs, the UK seems to be more attractive than any other EU state, that is were I think the main issue is, fix it and the problem by in large goes away.

Review how people coming to the UK qualify for benefits, unless they have a job for a certain length of time (say a year) then their home country is the only way they get paid any sort of welfare and if they fail to get employment within a certain timeframe then they must go home and start again.

Welfare paid to immigrants remains the responsibility of their home countries unless certain criteria is met....end of problem

The answer is very simple.

Change UK Law to make ALL benefits contributory based with a 5 year minimum contribution. For everyone.

indeed another possibility and make the country they come from responsible for all benefits paid in other EU countries until they have met the contribution criteria you suggest

[MissAndry]

indeed another possibility and make the country they come from responsible for all benefits paid in other EU countries until they have met the contribution criteria you suggest

Don't let them in, problem solved.

[daveAustin]

Do the Germans really want to potentially stifle their massive auto export market to the UK? There is already a huge trade deficit between UK-EU as it is. Britain just needs to dig its heels and drum up free trade with forward-thinking entities. The EU has become such a bloated, anachronistic waste of time and money, it is not funny anymore.

[ilostmypassword]

Do the Germans really want to potentially stifle their massive auto export market to the UK? There is already a huge trade deficit between UK-EU as it is. Britain just needs to dig its heels and drum up free trade with forward-thinking entities. The EU has become such a bloated, anachronistic waste of time and money, it is not funny anymore.

That sounds like a realistic hard-headed plan. Maybe the UK should hire Tony Robbins as its life coach.

[SgtRock]

Do the Germans really want to potentially stifle their massive auto export market to the UK? There is already a huge trade deficit between UK-EU as it is. Britain just needs to dig its heels and drum up free trade with forward-thinking entities. The EU has become such a bloated, anachronistic waste of time and money, it is not funny anymore.

You have highlighted a few points that really get up my nose.

1. Free trade. Something that costs £12 Billion a year gross, is not free.

2. Germany's massive export trade to the UK is going to cause problems. I would love to be a fly on the wall at the informal meetings that will not be taking place.

Finally, I posted this on another thread. If the EU is really all about trade. Abolish the EU and its various institutions entirely and set up a trade commission. A commission that deals ONLY with trade.

Have to ask oneself why that is not going to happen

[neverdie]

Do the Germans really want to potentially stifle their massive auto export market to the UK? There is already a huge trade deficit between UK-EU as it is. Britain just needs to dig its heels and drum up free trade with forward-thinking entities. The EU has become such a bloated, anachronistic waste of time and money, it is not funny anymore.

They're feeling threatened. They can see the writing on the wall.

Quick, you fetch the popcorn, I'll fluff the seat cushions.

[eliotness]

As the EU exports more to the UK than it exports to the EU any ban on trade will hurt the EU, especially Germany, more than it hurts the UK. It just won't happen.

[ilostmypassword]

As the EU exports more to the UK than it exports to the EU any ban on trade will hurt the EU, especially Germany, more than it hurts the UK. It just won't happen.

If the EU doesn't enforce its terms then the EU is dead. Maybe the EU will choose suicide but otherwise not.

[Junkyarddog]

The EU is not about trade. Thats just a facade to take your eye off the ball. The EU is a NWO organization that is Only about power and control.

[Norvid]

Now this sociopathological Brussel's, uncontrolled by any country, government blackmailing Great Britain. Diktat is diktat and their "democracy", multiculturalism and political correctness is nothing less than dictatorship.

[smedly]

Do the Germans really want to potentially stifle their massive auto export market to the UK? There is already a huge trade deficit between UK-EU as it is. Britain just needs to dig its heels and drum up free trade with forward-thinking entities. The EU has become such a bloated, anachronistic waste of time and money, it is not funny anymore.

although I would love to agree with you I believe they will not budge on the free movement issue so like I said above, the solution is to agree with it but make the UK less attractive - cut the flow of ridiculous handouts that only the UK seems offer and tighten the means and methods used to qualify for such benefits. If someone wants to go to another EU country to look for work their own country must support them for a certain period of time and they must work there for a number of years before they themselves will qualify for things like jobseekers, you have got to ask the question - why is the UK so attractive right now seemingly more so than any other EU state

[Guest]

UK global exports in 2014

The top exports of the United Kingdom are Cars ($46B), Gold ($37.4B), Crude Petroleum ($23.1B), Refined Petroleum ($22.1B) and Packaged Medicaments ($19.6B), using the 1992 revision of the HS (Harmonized System) classification. Its top imports are Cars ($47.3B), Crude Petroleum ($34.1B), Refined Petroleum ($27.7B), Packaged Medicaments ($21.5B) and Computers ($16.9B).

The top export destinations of the United Kingdom are the United States ($51B), Germany ($46.5B), the Netherlands ($34.2B), Switzerland ($33.6B) and France ($27B). The top import origins are Germany ($100B), China ($62.7B), the Netherlands ($50.7B), the United States ($44.4B) and France ($41.5B).

UK global imports in 2014

http://atlas.media.mit.edu/en/profile/country/gbr/

Does anyone have a good source, what are the by type figures with UK-EU

[SgtRock]

^

Hard to get accurate data.

You could try here as a starting point

The following export product groups represent the highest dollar value in UK global shipments during 2015. Also shown is the percentage share each export category represents in terms of overall exports from United Kingdom.

1. Machines, engines, pumps: US$63.9 billion (13.9% of total exports)
2. Gems, precious metals: $53 billion (11.5%)
3. Vehicles: $50.7 billion (11%)
4. Pharmaceuticals: $36 billion (7.8%)
5. Oil: $33.2 billion (7.2%)
6. Electronic equipment: $29 billion (6.3%)
7. Aircraft, spacecraft: $18.9 billion (4.1%)
8. Medical, technical equipment: $18.4 billion (4%)
9. Organic chemicals: $14 billion (3%)
10. Plastics: $11.8 billion (2.6%)

Aircraft and spacecraft were the fastest-growing among the top 10 export categories, up 18.2% for the 5-year period starting in 2011.

In second place for improving export sales vehicles which were up 10.2% led by cars and work trucks.

UK pharmaceuticals posted the third-fastest gain in value at 8.4%.

Oil led the decliners down by -49.8%.

This is the really interesting part

Therefore, exports accounted for about 17.3% of total UK economic output.

From a continental perspective, 53.6% of UK exports by value are delivered to European trade partners while 22.5% are sold to Asian importers. United Kingdom ships another 16.1% to North America but just 2.6% to Africa.

http://www.worldstopexports.com/united-kingdoms-top-exports/

About 9% of the UK's total economic output is through exports to the EU.

[Chicog]

11 Countries Gearing Up to Strike Trade Deals With Britain

http://heatst.com/uk/11-countries-gearing-up-to-strike-trade-deals-with-britain/

[sonos99]

It's not just about trade. The service sector is also very important. Don't forget financial services which contribute approximately 10% of Gdp and the same percentage of tax receipts (corporate tax, income tax, etc). Not all this relates to the EU but retaining a passport for financial services is also important for the UK economy.

[ilostmypassword]

Now this sociopathological Brussel's, uncontrolled by any country, government blackmailing Great Britain. Diktat is diktat and their "democracy", multiculturalism and political correctness is nothing less than dictatorship.

With membership comes privileges and responsibilities. Without membership no privileges and no responsibilities. If the UK is truly better off outside of the EU, then the UK can't be blackmailed.

[GAZZPA]

Interesting how the media's far right stretches all the way to those who are moderate centrists.

Or perhaps the moderate centrists are being brave enough to highlight the issues and the Far right are abusing it.

[GAZZPA]

Do the Germans really want to potentially stifle their massive auto export market to the UK? There is already a huge trade deficit between UK-EU as it is. Britain just needs to dig its heels and drum up free trade with forward-thinking entities. The EU has become such a bloated, anachronistic waste of time and money, it is not funny anymore.

although I would love to agree with you I believe they will not budge on the free movement issue so like I said above, the solution is to agree with it but make the UK less attractive - cut the flow of ridiculous handouts that only the UK seems offer and tighten the means and methods used to qualify for such benefits. If someone wants to go to another EU country to look for work their own country must support them for a certain period of time and they must work there for a number of years before they themselves will qualify for things like jobseekers, you have got to ask the question - why is the UK so attractive right now seemingly more so than any other EU state

I though am in favour of restricting the flow based upon skill sets. What is the point of allowing people into the UK if there are no jobs available to them, or no workforce shortage. Ok, so cutting the available welfare is one way but welfare is already getting very tightly controlled and any more restrictions have to be shown to be applicable to all, including the UK citizens themselves. So, not sure this is such a good idea.

Better to say to the EU that the UK will allow EU citizens to enter the UK if they have a job lined up and then that can live, work and pay taxes. If not they can come and go as they please as tourists with no visa requirements. So, still freedom of movement just a sensible restriction on people coming into the UK to live must have work lined up.

[Humberstone]

Do the Germans really want to potentially stifle their massive auto export market to the UK? There is already a huge trade deficit between UK-EU as it is. Britain just needs to dig its heels and drum up free trade with forward-thinking entities. The EU has become such a bloated, anachronistic waste of time and money, it is not funny anymore.

although I would love to agree with you I believe they will not budge on the free movement issue so like I said above, the solution is to agree with it but make the UK less attractive - cut the flow of ridiculous handouts that only the UK seems offer and tighten the means and methods used to qualify for such benefits. If someone wants to go to another EU country to look for work their own country must support them for a certain period of time and they must work there for a number of years before they themselves will qualify for things like jobseekers, you have got to ask the question - why is the UK so attractive right now seemingly more so than any other EU state

I though am in favour of restricting the flow based upon skill sets. What is the point of allowing people into the UK if there are no jobs available to them, or no workforce shortage. Ok, so cutting the available welfare is one way but welfare is already getting very tightly controlled and any more restrictions have to be shown to be applicable to all, including the UK citizens themselves. So, not sure this is such a good idea.

Better to say to the EU that the UK will allow EU citizens to enter the UK if they have a job lined up and then that can live, work and pay taxes. If not they can come and go as they please as tourists with no visa requirements. So, still freedom of movement just a sensible restriction on people coming into the UK to live must have work lined up.

I'm no expert here, but it is my understanding that EU migrants to the UK are net contributors to the UK economy as most are working and paying PIT and NIC. Also, isn't it the case that there a far fewer of them on benefits as a proportion compared to UK citizens?

I think it's fair to add that David Cameron as part of his 're-negotiation' with the EU managed to get an agreement with the EU such that there would be a period before EU migrants could claim in-work benefits.

[elgordo38]

Dear people of the UK I truly smell another Greece in the making. You vote on a new party and they win. Then you vote on leaving the EU and you win at the ballot box BUT the people that you voted for betray you in the end and hat in hand go to the EU for mercy and a handout. After much verbal and physical flogging by the EU you finally receive a pittance but must sell your national treasures i.e. airports etc. to the rich foreign money grabbers at cents on the dollar. They have completely subjugated and dominated you (Greece) which is precisely why the UK voted to leave. Others will follow

[MissAndry]

Dear people of the UK I truly smell another Greece in the making. You vote on a new party and they win. Then you vote on leaving the EU and you win at the ballot box BUT the people that you voted for betray you in the end and hat in hand go to the EU for mercy and a handout. After much verbal and physical flogging by the EU you finally receive a pittance but must sell your national treasures i.e. airports etc. to the rich foreign money grabbers at cents on the dollar. They have completely subjugated and dominated you (Greece) which is precisely why the UK voted to leave. Others will follow

I think they already own the airports, they certainly have most of the utilities, and banks, Santander a Spanish company bought a lot of the British banks and building societies, Royal Bank of Scotland bought most of the others.

http://www.ibtimes.co.uk/heathrow-owner-sells-three-british-airports-foreign-buyers-1bn-deal-1470472

"HAH, which is the owner of the UK's busiest airport - Heathrow - has sold its Glasgow, Aberdeen and Southampton airports to a consortium formed of Ferrovial, a Spanish transportation infrastructure firm which already has a 25% stake in HAH, and Macquarie - an Australia-based finance company."

Edited June 30, 2016 by MissAndry

[sujoop]

Do the Germans really want to potentially stifle their massive auto export market to the UK? There is already a huge trade deficit between UK-EU as it is. Britain just needs to dig its heels and drum up free trade with forward-thinking entities. The EU has become such a bloated, anachronistic waste of time and money, it is not funny anymore.

Yes Dave, this really is not at all funny anymore:

January 21, 2016

Record exports for UK carmakers as demand from Europe grows

*EU accounted for 57.5 per cent of all British car exports

*Sector jobs increased by 17,000, with 814,000 people now employed in the UK automotive sector

http://www.ft.com/cms/s/0/b2445b02-bec9-11e5-846f-79b0e3d20eaf.html#axzz4D353meQh

=============

June 29, 2016

Manufacturers, Consumer Firms Plead for Single-Market Access After Brexit Vote

*Why a Brexit matters to the UK Auto Industry

http://www.wsj.com/articles/u-k-auto-makers-plead-for-single-market-access-after-brexit-vote-1467191997

===============

Sub notes:

*'About a fifth of all cars produced in Germany last year, or around 820,000 vehicles, were exported to the UK'

*'UK produced 1.59 million cars last year. Some 80% of those were exported, mostly to Europe.'

*'the average employee making over £110,000 in value-added to the economy'

So, Germany exports 1/5 to UK.

UK exports 57% to EU (you know, that evil single market thingy)

Please tell us your plan to preserve and grow those 800,000 excellent jobs Brexiteers?

Oh right, Brexit was primarily about satisfying fears of xenophobes and there is no plan.

Edited June 30, 2016 by sujoop

[smedly]

Dear people of the UK I truly smell another Greece in the making. You vote on a new party and they win. Then you vote on leaving the EU and you win at the ballot box BUT the people that you voted for betray you in the end and hat in hand go to the EU for mercy and a handout. After much verbal and physical flogging by the EU you finally receive a pittance but must sell your national treasures i.e. airports etc. to the rich foreign money grabbers at cents on the dollar. They have completely subjugated and dominated you (Greece) which is precisely why the UK voted to leave. Others will follow

Not sure I understand what you are saying but if you are camparing the UK to Greece that is like me comparing my left poicket (which has a hole in it) where I keep my loose change but it keeps disappearing - to my 4 bank accounts which are rich full and earning.

Why did Greece not hold a referendum to leave the EU ?

[Baerboxer]

Dear people of the UK I truly smell another Greece in the making. You vote on a new party and they win. Then you vote on leaving the EU and you win at the ballot box BUT the people that you voted for betray you in the end and hat in hand go to the EU for mercy and a handout. After much verbal and physical flogging by the EU you finally receive a pittance but must sell your national treasures i.e. airports etc. to the rich foreign money grabbers at cents on the dollar. They have completely subjugated and dominated you (Greece) which is precisely why the UK voted to leave. Others will follow

Interesting synopsis. Greece certainly appears to have been screwed, although set itself up over many years.

The federalist - Juncke, Hollande, Schulz etc certainly want more central control and comments from a German minister about elections not being allowed to change things and Jucnke himself warning Germans that the EU Commission wouldn't work with the AFD party even if they were democratically elected doesn't suggest a healthy democratic attitude!

The intergovernmentalists - like Merkel and Tusk are a counterbalance and I believe saw the UK as being part of that counterbalancing weight. That's why Hollande and Schulz want us out quickly while Merkel and Tusk are saying take some time, within reason.

The French Foreign Minister made a very interesting comment. He suggested a new EU vision and charter should be formulated and put to all EU citizens in a referendum. This initiative has been ignored by the press, by colleagues, and by the federalists in particular.

As with communism, federal socialist neo-liberals see politicians and appointed bureaucrats as rulers not servers of the electorate. They have their own plan and vision and see no need to change it.

[ilostmypassword]

Dear people of the UK I truly smell another Greece in the making. You vote on a new party and they win. Then you vote on leaving the EU and you win at the ballot box BUT the people that you voted for betray you in the end and hat in hand go to the EU for mercy and a handout. After much verbal and physical flogging by the EU you finally receive a pittance but must sell your national treasures i.e. airports etc. to the rich foreign money grabbers at cents on the dollar. They have completely subjugated and dominated you (Greece) which is precisely why the UK voted to leave. Others will follow

Not sure I understand what you are saying but if you are camparing the UK to Greece that is like me comparing my left poicket (which has a hole in it) where I keep my loose change but it keeps disappearing - to my 4 bank accounts which are rich full and earning.

Why did Greece not hold a referendum to leave the EU ?

Greece was in a very bad position because its currency is the Euro. Germany made it clear that it would punish Greece severely if it left. The best course would have been to write off the debt and get Greece out of the Eurozone. That said, it's probably the best course for most of the members of the Eurozone.

[bkkcanuck8]

Dear people of the UK I truly smell another Greece in the making. You vote on a new party and they win. Then you vote on leaving the EU and you win at the ballot box BUT the people that you voted for betray you in the end and hat in hand go to the EU for mercy and a handout. After much verbal and physical flogging by the EU you finally receive a pittance but must sell your national treasures i.e. airports etc. to the rich foreign money grabbers at cents on the dollar. They have completely subjugated and dominated you (Greece) which is precisely why the UK voted to leave. Others will follow

Not sure I understand what you are saying but if you are camparing the UK to Greece that is like me comparing my left poicket (which has a hole in it) where I keep my loose change but it keeps disappearing - to my 4 bank accounts which are rich full and earning.

Why did Greece not hold a referendum to leave the EU ?

Greece was in a very bad position because its currency is the Euro. Germany made it clear that it would punish Greece severely if it left. The best course would have been to write off the debt and get Greece out of the Eurozone. That said, it's probably the best course for most of the members of the Eurozone.

Greece is in trouble because it borrowed more money than their economy could handle, while having problems with their tax system - which means they have a huge chunk of change while getting nothing for that money (i.e. not paying down the principal) - i.e. the interest piles up faster than the economy grows - and that was during the best of times.... then the financial crisis it and they are complete screwed. Yes, they should never have been allowed into the Euro, but no the Euro did not cause their problems.... they f*cked themselves.

The people asked for all this... spend more money, don't tax.... now they turn around and blame it on the Germans. People don't like to take responsibilities for things that they are absolutely responsible for.