Owen Paterson: Has he called for #Brexit or #EUReform?

BBC reports is is #Brexit

Former Cabinet Minister Owen Paterson has just made a hard hitting speech on the UK’s relationship with the EU. He made a familiar case that the EU is as much a political union as an economic one. He concluded that the UK should remain in the ‘economic’ Single Market but remove itself from the political union.

A clear position? Well, staying in the Single Market, while removing the political aspects of the EU can mean different things – it could mean remaining in the EU while pairing back the worst aspects of the EU’s state building or leaving altogether and negotiating instead a trade agreement in order to retain access to the Single Market.

There has been some understandable ambiguity in the reporting of Paterson’s position, this is our under-standing:

Times reports it is "reform"

Firstly, Paterson believes the issue should be solved via a referendum in 2017. But his proposed question is not entity straight forward. His preferred options are:

Yes: The UK leaves the EU and joins the EEA, like Norway; or
No: The UK stays in the EU and joins the euro

An interesting choice, that excludes the possibility of better EU terms or even continuing as a non-Euro state. However, it is clear that Paterson’s negotiation is not a ‘re-negotiation’ but a simple negotiation for #Brexit. He favours joining Iceland, Switzerland, Lichtenstein and Norway in EFTA and joining EFTA’s deal with the EU – known as the EEA (of which Switzerland is not part). And in order to conclude his exit terms and EEA membership he seeks to use a provision of the Lisbon Treaty that allows a two year period after notifying the EU of an intention to exit to attempt to finalise continuity terms – Article 50. We're sceptical of the EEA model as an alternative for the UK outside the EU, at least as currently set out, but let's leave that one to the side for the moment.

It has been argued previously that Article 50 could be used to trigger a full renegotiation of the terms of the UK’s membership within the EU. However Paterson’s proposal is more straightforward – he wants to immediately start to negotiate Brexit terms in 2015 so that a clear proposition is on the table for the 2017 referendum. That may have the benefit of providing the clarity that has so far been lacking in the ‘out’ case – but has three obvious drawbacks.

1. What happens if the other EU states do not wish to negotiate prior to a referendum outcome – they cannot be forced to.
2. What happens if the UK votes to stay in – would the other EU member states be compelled to cancel the exit application? Perhaps but at what price?
3. Article 50 isn't a great negotiating tool. We have previously weighed up the pros and cons of using Article 50 below, but what's clear is that it's giving away a lot leverage over the UK's terms of exit (for example, the final deal will be decided by a qualified majority vote of which the UK won't be part).

Source: Gaming Europe's Future by Open Europe

Paterson may however argue that Article 50 is a legal mechanism and something as important as the UK’s membership will ultimately be decided politically, in the UK and the EU level.

The Independent getting excited but do 100 Tory MPs really want to leave the EU no matter what?

The UK media has an insatiable appetite for ‘Tories split’ stories on Europe – mainly we suspect because it makes for an attention-grabbing headline - and Douglas Carswell’s defection is Christmas come early for many. True, the defection is a big deal which could have even bigger implications so fair enough.

However, off the back of his move, there are now far less credible stories cropping up. As OE Director Mats Persson argued on his Telegraph blog back in January:

 “There's a vicious circle at play here. The UK media never seems to get tired of Tory split stories. It only takes a handful of vocal backbench MPs to create a “Tory rebellion” headline. English being the lingua franca, European politicians and commentators read the UK press, drawing the conclusion that, this is really all about a party talking to itself about itself. The many good reform ideas coming out of the UK are dismissed as a matter of “domestic politics” – an image happily (sometimes dishonestly) conveyed by a whole host of special interests, including those who have invested personal prestige in the EU project and seek to maintain the status quo. Cameron, meanwhile, is seen as an unreliable partner, not in control at home. This perception is then fed back to the UK press, as a sign that Cameron is “isolated”, in turn hardening backbench opinion.” 

A prime example is today’s Independent front-page, celebrating that “Up to 100 MPs will call EU exit regardless of concessions won by PM”. So one third of the Tory Parliamentary Party has already made up its mind on the EU? That’s a big claim. Cameron might as well throw in the towel now. It’s an over-cooked story, of course, as is usually the case, quoting exactly the same Tory MPs who have been quoted in stories like this since Magna Carta. The big headline number comes from “other eurosceptics” (hmmmm) who “predicted” that “between 50 and 100 Conservative MPs would make the same pledge” [out of the EU no matter what]. In other words, the number is plucked straight out of thin air.

There will no doubt be pressure on Tory MPs to clarify their position, but to go for “out no matter what” is a whole matter entirely. Still, this story will make it into embassy press clippings around Europe, and will probably also be re-produced in some foreign papers (100 is an impressive and conveniently round number). And voila, it has taken a life of its own. The Independent prides itself on taking “seriously our responsibility to maintain high editorial standards.” Well, we’re not impressed.