A fractured European Union serves no-one’s interests

Prime Minister David Cameron took the risk of promising a referendum on Britain’s membership of the European Union to unite his divided party ahead of last year’s general election. It was a gamble with Britain and Europe’s future that sparked passionate debate at home and warnings from abroad. They included entreaties from China and the US and an international who’s who of business leaders for politicians and voters to reflect on the folly of Brexit. But against all expectations, the gamble has come stunningly unstuck, sending shock waves around the world. Victory for the leave-Europe campaign has unleashed immediate consequences and future uncertainties, as Britain prepares for complex negotiations on divorce from the EU and a new trade and economic relationship after 43 years of marriage.

Cameron has taken responsibility by falling on his sword, promising to make way for a new leader later this year. Scotland sees its future in Europe, raising the prospect of another independence referendum. The pound fell to its lowest level against the dollar since 1985 and markets plunged as they reacted to the results and implications, especially for London’s role as a world financial centre wired into Europe.

Brexit supporters may have argued that Britain can do better on its own. Indeed, they can cite its prosperity despite never joining the single-currency euro zone and one of the strongest growth rates in Europe. But this does not take account of the effect on Europe, largely still struggling to restore economic growth after the financial crisis. How did it come to this? The plebiscite tapped directly into hot-button issues with ordinary voters – post-financial crisis austerity policies and immigration of EU nationals, resulting in a leave vote in northeast England and Wales that outweighed the remain vote from London. Hopefully this backlash will force the EU to address long-standing criticism it has failed to admit or address its mistakes.

A weakened union

The decision has economically and politically weakened the EU. It has boosted protectionist and anti-immigration sentiment on the continent, emboldening Eurosceptics to push for renegotiations and referendums of their own; the Netherlands, Denmark, Sweden, Austria and Italy are high on the list. But EU leaders must not succumb to the pressure to allow the grouping to unravel or for governments to control their own trade, borders and migration. Integration leads to economic growth and strength through increasing the size of the market, competition and providing ideas and a reliable workforce.