How has the EU misused their power?

1. Common Agricultural Policy inefficient use of EU money. Subsidies given for political reasons rather than economic. Cost of CAP was over 60% of total EU budget, this has now fallen to 45%

2. Bureaucracy. Costs of bureaucracy of EU are a high % of total expenditure

3. Common Fisheries Policy. This is estimated to cost at least £1 billion a year to Britain in lost jobs and reduced catches. But, has also failed to stem over fishing in the north sea. [1]

4. Over Regulation - It is estimated that 70% of new British laws come from Brussels. Holland claimed that enforcing EU regulations has led to a cost equal to 2% of GDP.



[1] Report is by Bruges group which is anti european. Statistics can be manipulated. For example, the Bruges group claim the cost per head of EU membership is £873, but, according to Foreign and Commonwealth office the cost is about £300 per head [1] (and this is before the benefits of membership are included.

[2] To answer the question has the EU misused its power may require a consideration of political factors, such as loss of local democracy. However, the impact of the political nature of the EU, is not in the remit of Economics


See also: Benefits and disadvantages of EU membership

Labels: european union

what advantages and disadvantages does membership of the EU bring to the UK? and what would happen if we left the EU


related posts on EU:

• Arguments for the UK staying in the European Union
• Arguments for Leaving the European Union

• Costs and Benefits of EU membership for UK
  
• Disadvantages for Eastern European Countries
• Benefits of Euro
  

Labels: european union

Economic Benefits of EU for UK

1. Free Trade with EU trading partners. Trade with EU countries now accounts for over 60% of UK’s trade (compared to 16% for US). This has helped create jobs in the export sector and is an important determinant of UK growth.
2. Lower Prices for Consumers. Free trade and increased competitiveness of the EU has enabled consumers to benefit from lower prices, at least for some goods.
3. Regional aid. Areas like S. Wales and the North East of England benefited from European regional grants which helped the local economy’s improve. However the UK no longer has any relatively deprived areas (after eastern countries entered)
4. Harmonisation of Rules and regulations: These have reduced costs for business.
5. EU rebate (negotiated by Mrs Thatcher) means that membership of the EU costs effectively very little.

Economics Costs of European Union for the UK.

1. Common Agricultural Policy has inflated prices of agricultural goods.
2. Common Agricultural Policy has been a major stumbling block in trade negotiations making it more difficult to reduce tariffs on UK exports. Thus some UK exporters have lost out as a result of EU’s protectionism in agriculture.
3. Common Agricultural Policy has tended to favour large farmers. Thus it has done nothing to reduce inequality within agriculture. The CAP has also tended to perpetuate inefficient farms. Although reforms to CAP have reduced the quantity of food surpluses there is still a significant % of the EU budget spent on subsidising inefficient farms.
4. Cost of bureaucracy and European parliament. Although the press have often exaggerated the real cost of the EU it remains an extra level of bureaucracy for the UK to deal with.
5. Free movement of labour has caused pressure on housing within the UK in certain cities like London. On the other hand immigrants from Eastern Europe have filled various job vacancies and played an important role in the economy.

See also: benefits EU

European Union

Labels: european union

After criticising the EURO, at least arguing the UK should not join. I think it is only fair to remember some of the benefits of the European Union.

Not least amongst the achievements of the EU include:

1. Peace amongst nations - European Union countries are no longer at loggerheads like they were in the past.
2. Economic development of countries like Portugal, Ireland and Spain.
3. Free Movement of workers across Europe.
4. Prospect of membership has helped modernise Turkey.

There are 50 reasons here at the Independent: 50 Benefits of the European Union

I think the best of all 50 is this one:

50. Lists like this drive Eurosceptics mad

In the Daily Mail-Sun universe, the EU can never do any good. Brussels is an insane bureaucracy, which secretly plots to have all donkeys painted blue (with yellow stars). The 50th birthday of the European project is a time to celebrate the many positive things which the EU has brought us.

• European Union
• Benefits of Joining EURO

Labels: european union