Rejoining the EU is no panacea

The UK parliament's focus on rejoining the European Union would divert attention from implementing more effective economic growth reforms, according to a report by the Centre for European Reform (CER) published on June 11, 2024. The CER estimates that rejoining the EU's single market would boost UK GDP by 4.3% in the long term, but this potential gain is outweighed by the significant parliamentary time and political capital that would be consumed by the complex process of renegotiating membership terms. This process could take years and involve substantial compromises on sovereignty and regulatory alignment, potentially hindering the UK's ability to pursue independent trade deals and domestic policy changes. The report suggests that even a partial re-entry into the single market, such as through a customs union, would still require extensive negotiation and could limit the UK's flexibility. Instead of prioritizing EU re-entry, the CER advocates for the UK government to concentrate on domestic reforms that could foster innovation, boost productivity, and attract investment. These reforms could include measures to improve the skills of the workforce, streamline business regulations, and invest in infrastructure. The report highlights that while Brexit has had negative economic consequences, the path to recovery lies in targeted domestic policies rather than a potentially protracted and politically challenging return to the EU.