It isn't often that I agree with George Soros, but on the EU I mostly do. We both think it is dysfunctional; that it is facing an existential crisis of which Brexit is a symptom rather than a cause; and that there are two possible outcomes from here either it will collapse or it will "transform itself into an organisation that other countries like Britain will want to join".
To do the latter (which would be great!) it needs to abandon the idea of ever closer union and move to a loose system of union with lots of different membership models. It needs to remember, as Soros told the Brussels Economic Forum this week, that "the European Union was meant to be a voluntary association of like-minded states that were willing to surrender part of their sovereignty for the common good".
However, after the financial crisis the EU became something else: "a creditor/debtor relationship where the debtor countries couldn't meet their obligations and the creditor countries dictated the terms that the debtors had to meet." The net result was "neither voluntary nor equal."
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This has to be addressed, as do the various problems of free movement, democratic distance and country-inappropriate regulation across the EU. We need, says Soros, not ever closer union or even a multi-speed EU (which suggests anyway that the final destination is ever closer union) but a multi-track Europe one that gives its members genuine choices and allows them to retain genuine sovereignty.
And as Soros notes, the UK is an exceptionally well functioning parliamentary democracy. If the EU fully reforms (not likely but possible!) there is no reason why we shouldn't vote to join the new version at some point in the future using (hopefully) one of many membership models.
An awful lot of the people who voted Brexit (me included) would like to be in some sort of union with the EU just not the one currently on offer.
-
Christmas at Chatsworth: review of The Cavendish Hotel at BaslowMoneyWeek Travel Matthew Partridge gets into the festive spirit at The Cavendish Hotel at Baslow and the Christmas market at Chatsworth
-
Tycoon Truong My Lan on death row over world’s biggest bank fraudProperty tycoon Truong My Lan has been found guilty of a corruption scandal that dwarfs Malaysia’s 1MDB fraud and Sam Bankman-Fried’s crypto scam
-
Beating inflation takes more luck than skill – but are we about to get lucky?Opinion The US Federal Reserve managed to beat inflation in the 1980s. But much of that was down to pure luck. Thankfully, says Merryn Somerset Webb, the Bank of England may be about to get lucky.
-
Rishi Sunak can’t fix all our problems – so why try?Opinion Rishi Sunak’s Spring Statement is an attempt to plaster over problems the chancellor can’t fix. So should he even bother trying, asks Merryn Somerset Webb?
-
Young people are becoming a scarce resource – we should value them more highlyOpinion In the last two years adults have been bizarrely unkind to children and young people. That doesn’t bode well for the future, says Merryn Somerset Webb.
-
Ask for a pay rise – everyone else isOpinion As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why you should do that too.
-
Why central banks should stick to controlling inflationOpinion The world’s central bankers are stepping out of their traditional roles and becoming much more political. That’s a mistake, says Merryn Somerset Webb.
-
How St Ives became St Tropez as the recovery drives prices sky highOpinion Merryn Somerset Webb finds herself at the epicentre of Britain’s V-shaped recovery as pent-up demand flows straight into Cornwall’s restaurants and beaches.
-
The real problem of Universal Basic Income (UBI)Merryn's Blog April employment numbers showed 75 per cent fewer people in the US returned to employment compared to expectations. Merryn Somerset-Webb explains how excessive government support is causing a shortage of labour.
-
Why an ageing population is not necessarily the disaster many people think it isOpinion We’ve got used to the idea that an ageing population is a bad thing. But that’s not necessarily true, says Merryn Somerset Webb.
