David Cameron is receiving a lot of advice on how to ‘renegotiate’ the terms of Britain’s EU membership, if he wins May’s general election. Janan Ganesh’s recent Open Europe essay, ‘From a reluctant European: a memo to the prime minister’, is an excellent contribution to this debate. However, Ganesh mistakenly urges Cameron to seek UK opt-outs from EU social policy and financial regulation, neither of which is feasible, and he misreads the German position on some key dossiers.

The paper starts with a strong analysis of why the alternatives to full EU membership are pretty hopeless. Ganesh realises that a UK seeking to leave the EU would be in a weaker position to negotiate access to the single market than many Conservatives imagine. If the British followed the Norwegian or Swiss models, they would have to accept most EU regulations, the free movement of labour and the obligation to make big payments into the EU budget. The UK is much more dependent on the EU’s market than vice versa: Britain’s exports to the EU account for 14 per cent of its GDP, while the rest of the EU exports only 2.5 per cent of its GDP to Britain. As Ganesh says, “Our working assumption must be that the EU would go out of its way to make life for a departing member as difficult as possible, pour encourager les autres”.
The paper starts with a strong analysis of why the alternatives to full EU membership are pretty hopeless. Ganesh realises that a UK seeking to leave the EU would be in a weaker position to negotiate access to the single market than many Conservatives imagine. If the British followed the Norwegian or Swiss models, they would have to accept most EU regulations, the free movement of labour and the obligation to make big payments into the EU budget. The UK is much more dependent on the EU’s market than vice versa: Britain’s exports to the EU account for 14 per cent of its GDP, while the rest of the EU exports only 2.5 per cent of its GDP to Britain. As Ganesh says, “Our working assumption must be that the EU would go out of its way to make life for a departing member as difficult as possible, pour encourager les autres”.
