The total annual cost of EU membership to the UK could rise to 20% of GDP if the EU continues with its current economic policies, a tendency likely to be reinforced by the proposed constitution. This is according to a new study of UK membership of the EU by Professor Patrick Minford. The book, Should Britain Leave the EU?, is published on 2 June 2005.
In the book Professor Minford explains that this potential cost is so large because of:
Excessive regulation in labour and product markets; and
The UKs possible share of the enormous EU pension liabilities.
The cost of the EU to Britain is equivalent to the UK economy remaining stagnant for eight years, commented Professor Philip Booth of the Institute of Economic Affairs. This book shows that the UK is severely damaged by the EUs current and proposed future policies as indeed is the general mass of the people within the rest of the EU.
The effect of this on British consumers is illustrated by high prices for food and durable goods. Professor Minford says:
The Common Agricultural Policy, for example, raises food prices by about a half. Less well-known is the fact that the EUs informal agreements and anti-dumping procedures raise manufacturing prices by a similar amount. For example they raise the price of cars and furniture by around three quarters and the price of TVs and audio equipment by around two thirds. These price rises result from the pervasive protectionism that lies at the core of EU policies.
The book considers the ways in which the political advantages of collaboration within Europe can be maintained while removing this economic damage. It suggests that either:
EU policies should radically change towards the adoption of new policies of free trade, competition and deregulation (to the great benefit of EU citizens generally); or
The UK should renegotiate