Brexit

Alternative Relationships with the EU

On June 23, 2016, the United Kingdom’s European Union membership referendum resulted in a win for the “Leave” campaign. But the campaign and vote did not specify just how Britain would leave the EU or what relationship it would subsequently seek to have with the EU. Currently, a number of extra-EU members enjoy various political, legal and trade connections with the EU. Norway, Iceland and Liechtenstein are members of the European Economic Area (EEA), which gives them trade access to the EU’s single market at a cost of partial membership payments to the EU budget. Norway cares deeply about its fishing industry, which it has defended quite effectively. In contrast, Britain’s financial services sector will be a harder interest group to defend in such an arrangement. Fundamentally, the Norway model cedes a great deal of sovereignty to the EU – and Norway has little say in the EU parliament, since it isn’t a member state. However, because sovereignty and the “take back control” slogan were important to Leave voters, the Norway model appears to be a nonstarter for the UK and its financial sector.

Switzerland, a successful, relatively...