EU Membership Referendum

The referendum on the UK’s continued membership will take place on Thursday 23^rd June.  This follows an agreement on a package of changes to the terms of the UK’s membership agreed at a summit of EU leaders on the 18^th and 19^th February.  The next four months will obviously now be dominated by campaigning for the vote.  The effect on agriculture of ‘Brexit’ will probably not feature prominently in the wider debate, although our industry will potentially be one of the most effected by any decision to leave.  Our article earlier in the month highlighted some recent reports looking at the effect of Brexit on UK farming.

In terms of the renegotiated terms of membership, most commentators acknowledge it falls some way short of a ‘fundamental’ re-setting of the UK’s relationship with Europe, although neither is it trivial in terms of EU politics.  None of the changes directly affect the Common Agricultural Policy (CAP) or agriculture.   The headline points are;

• Welfare:  Child Benefit for migrant workers will be paid at a rate that reflects the cost of living in the country where the children reside.  In-work benefits can be limited for the first four years a migrant is in the UK.  However, this ’emergency brake’ only applies if there are ‘exceptional’ levels of migration and can only be applied for 7 years.  Also some power to stop free movement of people where non-EU nationals have married EU citizens.
• Non-Eurozone Protection:  commitment that the 19 countries that use the Euro will not group together to impose rules to the detriment of the non-Euro members (including the UK).  British money spent bailing-out Eurozone members will be reimbursed.  The City of London will not be discriminated against in EU rule-making.
• Competitiveness:  a commitment by all Members States to fully implement the Single Market (with specific mention of services, digital, and energy) and reduce red tape. 
• Sovereignty:  the UK does not have to be part of ‘ever closer union’.  There will be a ‘red card’ for national Parliaments that will allow EU legislation to be blocked if more than 55% of them object to a new measure.