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The European Union and Britain Jade McCauley The European Union The EU is an economic and political union of 28 member states that are located primarily in Europe. The European countries that participate in the world economy as one economic unit also operate under one official currency, the euro. Facts: The Union originated by six founding states – Belgium, France, West Germany, Italy, Luxembourg, and the Netherlands. The policies of the EU aim to ensure the free movement of people, goods, services, and capital. It also focuses on maintaining common policies on trade. With a combined population of over 500 million, the EU in 2012 generated a nominal gross domestic product (GDP) of 16.584 trillion US dollars. The EU is similar to a confederation. Britain and the European Union: History 1963 – Charles de Gaulle (France) vetoes Britain’s attempt to join the EU because of worry about English taking over as Europe’s main language. Three Pillars of the EU Comprised between 1993 and 2009. 1. The European Communities Pillar: economic, social and environmental policies. 2. The Common Foreign and Security Policy Pillar: took care of foreign policy and military matters. 3.Police and Judicial Co-operation in Criminal Matters: brought together co-operation in the fight against crime. 1973 – Britain is allowed into the EEC but called for major changes in less than a year due to needing “fairer methods of financing and budget” and solutions to monetary problems. 1975 – Even after these challenges, the people still voted “yes” when asked the referendum question of whether or not the UK should stay in the European Community. Margaret Thatcher and the Rebate Margaret Thatcher – Prime Minister from 1979-1990. A rebate on the UK’s contribution to the European Union budget paid back to the Government of the United Kingdom by the EU. 80% of the EU’s budget was being spent on the Common Agricultural Policy. Cameron’s EU Referendum David Cameron is the current prime minister of the U.K. and has been since 2010. Cameron has proposed an in or out of the EU referendum by 2017. Cameron is proposing that this referendum will pass because of it’s overwhelming support from the Conservatives. Fundamental Differences in Philosophy BRITAIN Laissez-faire An economic environment in which transactions between private parties are free from government restrictions, tariffs and subsidies, with only enough regulations to protect property rights. CONTINENT Social Democracy A political ideology that officially has its goal the establishment of democratic socialism through reformist and gradualist methods. Positions of Parties The Obama administration has warned again a British exit from the EU. The Labour Party say they do not support a referendum at the current time, but have not ruled it out for the future. The Liberal Democrats have said they do not support an in/out referendum because it is within Britain’s interests to remain a member. The UK Independence Party, the British National Party and the Green Party all support a referendum. Scottish Independence A national referendum is to be held in Scotland in 2014 to decide whether or not Scotland will become independent. This raises the issue of whether or not they will need to apply to be a part of the EU.