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European Affairs

In the words of the French Institute for International Affairs, the EU faces,"““a slow movement onto history’s exit ramp””." According to the think-tank Open Europe, all long-term forecasts suggest that the EU is set to experience rapid relative decline. The European Union’s own forecasts suggest that by 2050 its share of world GDP will nearly have halved. A report by Goldman Sachs shows that the EU’s competitiveness will have been diminished by higher taxes and regulations. Ageing work forces and demographic downturns will mean deteriorating public finances across member states. Data from Standard and Poor’s show an unmanageable burden on public finances for member states, with the exception of Britain. Why, then, is the default setting of the British foreign policy establishment stuck on closer integration with Europe? Why does the Foreign Office, which really decides our foreign policy, continue to push for more Europe? While China, India, the US and others benefit from increased competitiveness, the continent that industrialised first turns its back on the economic revolution that is happening beyond. Between the end of world war two and the 1970s, Europe, with relatively low regulation and tariffs, caught up with the United States. Since then, the EU has regulated and taxed itself to the point of stagnation. Europe’s slow growth and stagnation are a consequence of dirigiste top-down integration, a pan-European system of regulation, government by remote bureaucracy and restriction of economic activity by unaccountable officialdom. Inward-looking fortress Europe creates high tariff barriers. The EU’s overall tariff rate is high and harms the UK economy. It harms UK consumers and households, particularly poorer households. That is not just harmful to us; fortress Europe hurts Africa and the developing world as well. Goods from Japan, for example, face average tariffs of 1.6 per cent., but on average Malawi pays 12 per cent., Namibia 20 per cent. and Bolivia 26 per cent.