Like what you've read?

On Line Opinion is the only Australian site where you get all sides of the story. We don't
charge, but we need your support. Here’s how you can help.

  • Advertise

    We have a monthly audience of 70,000 and advertising packages from $200 a month.

  • Volunteer

    We always need commissioning editors and sub-editors.

  • Contribute

    Got something to say? Submit an essay.


 The National Forum   Donate   Your Account   On Line Opinion   Forum   Blogs   Polling   About   
On Line Opinion logo ON LINE OPINION - Australia's e-journal of social and political debate

Subscribe!
Subscribe





On Line Opinion is a not-for-profit publication and relies on the generosity of its sponsors, editors and contributors. If you would like to help, contact us.
___________

Syndicate
RSS/XML


RSS 2.0

Brexit is the only way to bring EU reforms

By Vince Hooper - posted Thursday, 26 May 2016


With the Brexit vote looming in the next month, it is still very hard for both the layman and well-informed to cast judgement on the 23rd June 2016, given the swirl of misinformation out there.

The Venice Commission stresses that the government should be neutral in conducting national referendums   [Code of Good Practice on Referendums adopted by the Council for Democratic Elections at its 19th meeting (Venice, 16 December 2006) and the Venice Commission at its 70th plenary session (Venice, 16-17 March 2007)]. These documents set out how referendums should be conducted, not much of which has been adhered to by the Cameron Government who wasted about £9 million of taxpayers money sending propaganda leaflets to every man (and woman) in the land supporting Bremain.

The arguments for Brexit or Bremain seem to change on a daily basis and are distorted by the egotistical clash between David Cameron and Boris Johnson, who both have their hidden agendas in vigorously supporting opposing camps.

Advertisement

The International Monetary Fund Head Christine Lagarde, is keen that Britain remains in the EU and out-going President Obama has waded into the debate saying that Britain would be at the back of the queue in terms of trade deals if we were to leave. Not only are they wrong, but their biased interventions have been largely ignored by the electorate, as reflected in the polls.

It has also been claimed by the Prime Minister that Brexit could lead to WWIII, and hit global growth by destabilising emerging markets, despite the biggest threat coming from a slowdown in China and the unwinding of QE and higher interest rates.

I will be voting for Brexit on the 23rd June as I believe that it will be beneficial for Britain and the EU, as well as the global economy. My rationale is that Brexit will lead to higher global economic growth, benefitting us all, as the EU is not reaching its peak economic performance because of its high unemployment rate of 10%. Of particular concern is the high level of youth unemployment and the subsequent disempowerment of young people across Europe.

The EU needs to readdress its delirious ambition of “ever closer Union” which is tied to their failed monetary project, the Eurozone. Its failure is exhibited by the precarious situation that Greece and other Southern Mediterranean countries have found themselves in, which has led to mass unemployment, coupled with low or negative economic growth rates.

Quite clearly, Europe cannot cope with the uniformity and the latent linear Federal structure being undemocratically forced by the EU as this has led to ever increasing divergences (or asymmetries in economic terminology). Asymmetric shocks like the Global Financial Crisis have occurred because of cross-national differences in social, economic, political and cultural factors. These appear to have permanently altered the structure of the EU. Whereas the rationale underlying the formation of the EU was to ‘level the playing field’ by allowing the free movement of factors of production across national frontiers, the reverse is happening. As the exchange rate has been essentially irrevocably fixed, the Eurozone countries’ competitiveness can no longer adjust via flexible exchange rates. As goods and services markets take longer to adjust through purchasing power parity, we are seeing greater segmentation occurring within Europe rather than integration that is at the heart of the European Single Market.

So we are at a crossroads. Either the EU needs to reform or it will fail like the Euro has failed. Cameron’s negotiations that gives the UK ‘special status’ within the EU are probably benign and not even a short-term fix they are unlikely to be ratified into a treaty change, and even if it was would not save the EU now. The EU project in its current form is doomed.

Advertisement

When first Britain signed up for the European club we thought at the time that this was just free trade but we have been dragged unceremoniously along into chaotic oblivion by the hidden agendas of the Federalists in Brussels who see standardisation as the way to bulldoze the way forward to create an undemocratic super state, at a huge social and economic cost.

Unemployment is way too high in Europe and is a direct result of Eurozone monetary union.

Loweringunemployment below its natural rate has been shown to lead to higher economic growth. This needs to happen in the EU with immediate effect as the EU unemployment rate is substantially higher than its natural rate. The common currency has distorted national economic policies needed to reduce unemployment. For example in Greece job creation by the public sector takes a much lower priority to repaying foreign creditors that increased dramatically as a result of the introduction of the Euro.

  1. Pages:
  2. Page 1
  3. 2
  4. All


Discuss in our Forums

See what other readers are saying about this article!

Click here to read & post comments.

9 posts so far.

Share this:
reddit this reddit thisbookmark with del.icio.us Del.icio.usdigg thisseed newsvineSeed NewsvineStumbleUpon StumbleUponsubmit to propellerkwoff it

About the Author

Vince Hooper is a British/Australian citizen and an expert and consultant in international finance to major multinational enterprises. He publishes in top journals like the International Journal of Forecasting, on volatility. He has served on the faculty at the Australian National University and the Australian School of Business. He has organized two major symposiums on the global financial crisis in Australia [2008] and Britain [2012] appropriately titled the “Time Varying Correlation and Volatility Symposium” which has enjoyed participation and input by world leading financial economists with coverage by the BBC. He has been a contributor to the AFR, SMH and ABC amongst other leading media on the Euro, the GFC, as well as financial market regulation. As Managing Director of Plymouth Videoconferencing Services he is establishing educational programmes in Brunei, China, Kazakhstan and the Middle East for Australian and UK Institutions.

Other articles by this Author

All articles by Vince Hooper

Creative Commons LicenseThis work is licensed under a Creative Commons License.

Photo of Vince Hooper
Article Tools
Comment 9 comments
Print Printable version
Subscribe Subscribe
Email Email a friend
Advertisement

About Us Search Discuss Feedback Legals Privacy