Why the EU Refused to Offer the UK a Better Brexit Deal

Introduction

When the United Kingdom voted to leave the European Union (EU) in 2016, it marked the beginning of a complex and contentious process. Although the UK had significantly more to lose through Brexit, the EU viewed it as a relatively smaller economic burden. This article delves into the reasons behind the EU's decision not to offer the UK a more favorable deal and explores the key factors that have hindered negotiations.

The Economic Impact on the UK

Research by the Centre for European Reform highlighted that the UK economy was approximately 2.5% smaller than it would have been had the UK remained in the EU. Post-Brexit, the public finances suffered a significant hit, with an annual shortfall of ￡26 billion, equivalent to ￡500 million per week. The financial impact has been a crucial factor in the UK's negotiation stance, but it did not sway the EU's decision to remain firm.

The EU’s Perspective

For the EU, the UK’s non-participation in the European Court of Justice (ECJ) meant that it was a partial member. The UK's contributions, including rebates, public grants, and private sector grants, simply resulted in a negative financial contribution to the EU. Many EU member states felt that the financial cost of allowing the UK to leave quietly was lower than negotiating a favorable deal. They believed that any attempts to offer a 'better deal' would push the EU to cut more payouts, which they deemed unnecessary.

Open Border vs. Regulatory Compliance

A major issue in Brexit negotiations has been the UK's desire for an open border without the need to follow EU rules. However, this concept is impractical both from a legal and practical standpoint. Northern Ireland, which is part of the UK, follows different standards than the rest of the EU but has open borders under the Good Friday Agreement. The EU cannot accept an open border for the entire UK without ensuring consistent regulatory standards across its internal market.

For the single market to function effectively, products must adhere to a unified set of standards. The UK cannot have its benefits without fulfilling its obligations, and this is a fundamental principle that both the UK and the EU must respect. The idea of Ireland becoming a sub-member or of the single market shutting down is not feasible. The single market remains essential for the UK's trade and economic prosperity.

Key Players and Their Stance

The political landscape within the UK also played a significant role in the negotiation process. Various factors, including the actions of Theresa May, Speaker Bercow, the Benn Act, and remain MPs, contributed to the current situation. These parties actively worked towards canceling Brexit if it was indefinitely postponed. Such attempts have led to a deadlock in negotiations, with the EU refusing to renegotiate and the UK being unwilling to accept a no-deal scenario.

The French and German Perspective

Some critics argue that the French and German approaches to Brexit are overly rigid, driven by a combination of nationalism and economic interests. These countries, it is alleged, have shown little interest in providing a mutually beneficial deal, as it would reduce their control over the EU. The EU's stance can be seen as a continuation of the idea that leaving the EU comes with significant obligations that must be adhered to, even after the formal Brexit transition period.

Given the current stalemate, the EU continues to hold firm on its stance, emphasizing the importance of maintaining the integrity of the single market and ensuring that UK products meet the necessary regulatory standards. The EU's decision not to offer a better deal stems from a calculated assessment of the potential risks and benefits, both economic and political, of accommodating the UK's desires without compromising the union's core principles.

Conclusion

The EU's decision not to offer the UK a better Brexit deal is rooted in a complex interplay of economic, political, and legal factors. As the UK seeks to maintain its benefits from the EU while avoiding the obligations, the EU remains committed to the principles of the single market and the free movement of goods, services, and people. The current situation highlights the challenges and complexities involved in negotiating trade and political relationships, especially in the context of a formerly integrated member leaving the union.