Brexit update: Tusk’s proposal is out and Cameron takes it all

David Cameron Angela Merker Francois Hollande Brexi

European Council 02 February 2016, Trilateral meeting roundtable for the “British question”. From left to right, Angela MERKEL, German Federal Chancellor, David CAMERON, Prime Minister of the United Kingdom, François HOLLANDE, President of France. Shoot location: Brussels. Shoot date: 15/10/2015

It was just yesterday when Donald Tusk, president of the European Council (EC), released a draft deal that intends to keep Britain within the EU. This new proposal is mostly aligned with what the British Prime Minister has been asking for from the European Union. However, this draft text must be voted by all 28 EU member states in the next meeting of the European Council in order to be official.

Till then, serious and tough negotiations are expected to take place during the next two weeks. The draft decision focuses on four main areas: economic governance, competitiveness, sovereignty and social benefits and free movement. These are the sectors that must be agreed in order for David Cameron to campaign in favor of staying within the EU.

Eurozone problems not to burden non-euro area EU countries

Inside the 16-page draft document, it is noted that the countries which do not have the euro as their currency will not be obliged to contribute to financial measures intended to rescue euro area member states in case of economic crises. More specifically, it is mentioned on page 7 that: “Emergency and crisis measures addressed to safeguarding the financial stability of the euro area will not entail budgetary responsibility for Member States whose currency is not the euro, or, as the case may be, for those not participating in the banking union”.

However, there is still a lot of work to be done and further clarifications must be agreed at this point since the proposal is not providing enough details on the contribution of non-euro countries. Would these member states act only as consultants? It is possible that the rest EU counties will be having serious arguments regarding the economic governance of Eurozone.

No more political integration for the UK

Regarding Britain’s sovereignty, it is highlighted in the draft agreement that “it is recognized that the United Kingdom, in the light of the specific situation it has under the Treaties, is not committed to further political integration into the European Union”. The latter was among the things that David Cameron wanted to achieve in the upcoming deal.

His main purpose is to provide to the national governments more power and put a stop at the “ever closer union”. The latter is clearly mentioned in the deal: “The references to an ever closer union among the peoples are therefore compatible with different paths of integration being available for different Member States and do not compel all Member States to aim for a common destination”.

Reducing migration and benefits in the UK

The changes that are proposed in the agreement are about to change the current primary and secondary policy rules of the EU, in the case of course Britain stays a member of the EU. The modifications will impact the migrants that plan to reside to the UK.  Hence, the plan is not to allow migrants to live in Britain without having the adequate funds and insurance. By implementing such a policy, the British government intends to reduce the number of migrants residing in the UK, improve its economy and be protected by the migration crisis which afflicts the whole Old Continent.

The exact words in the agreement are the following: “The right of economically non active persons to reside in the host Member State depends under EU law on such persons having sufficient resources for themselves and their family members not to become a burden on the social assistance system of the host Member State and have comprehensive sickness insurance.”

As far as the benefits of the new workers in the UK are concerned, David Cameron managed to take what he wanted by limiting their welfare benefits for up to four years. More precisely, in the draft release it is mentioned: “The implementing act would authorise the Member State to limit the access of Union workers newly entering its labour market to in-work benefits for a total period of up to four years from the commencement of employment. The limitation should be graduated, from an initial complete exclusion but gradually increasing access to such benefits to take account of the growing connection of the worker with the labour market of the host Member State.”

It seems thus that Britain has one more reason to vote in favor of staying in the EU when the referendum is going to take place. Mr Cameron has managed to create a framework where British people can be different from the rest of Europe and can receive more benefits even if that is for a specific period of time. But what the British Prime Minister didn’t manage to achieve so far is to forbid to migrants who are working in the UK to send child benefits money back to their home countries.

David Cameron also expressed his will to campaign in favor of staying in the EU, after Mr Tusk released his proposal, by saying: “If I could get these terms for British membership I sure would opt in.” But there are still 27 EU member states that must sign this document at the next EU summit in February 18-19.

All in all, it is obviously a very important moment in history of the EU and Britain, since apparently many things are about to change not only in the current EU policies but in the ordinary lives of the European people.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

The German banks first to profit from public subsidies of trillions

JADE Romania Celebrates the 4th Anniversary

Is the West gradually losing Africa?

Can the national and age groups pockets of unemployment cause irreparable damages to Eurozone?

Europe led by Germany seems vulnerable to Trump’s threats

Joris in Indonesia

Did Draghi ask the Germans to accept a drastic change of austerity policies?

Brazil’s hopeless future of science

Eurozone’s central bank leadership prepares for shoddier prospects

The West and Russia impose a new order on the world

How much more political is the new EU leadership? Does this include personal bend?

US prosecutors now target Volkswagen’s top management, upsetting Germany

Global Citizen-Volunteer Internships

October’s EU strong digital mix: From Safe Harbour to Net Neutrality, Roaming and Snowden

EU Council agrees to reform the system for motor vehicles but with “restricted” power for the Commission

The British “nonsense”, the relaxed Commissioner and the TTIP “chiaroscuro” at this week’s Council

ECB’s first flight in Eurozone’s banking universe will be just a reconnaissance

EU to spend €6 billion on youth employment and training futile schemes

Horse meat runs faster than authorities…

Higher education becoming again a privilege of the wealthy?

Access to health in the developping world

Migration crisis will keep deteriorating as common EU political will is simply not there

Why banks escape from competition rules but not pharmaceutical firms

Bugged Europe accepts US demands and blocks Morales plane

Preparing for developing countries the ‘Greek cure’

ECB: Euro area should smooth out the consumption and income shocks of its members

Russia to cut gas supplies again: can the EU get back to growth without a solid energy market?

Fostering intergenerational solidarity and cooperation through age-friendly environments: the right answer to Europe’s demographic challenge

When will Eurozone’s unemployment rate stop being Europe’s worst nightmare?

TTIP’s 11th round starts in Miami but EU-US businesses see no sunny side

My ‘’cultural’’ contacts with China

The migration crisis is slowly melting the entire EU edifice

Commission presents far-reaching anti-tax evasion measures

The European Internet is not neutral and neither is the Commissioner

China Unlimited Special Report: The trip to China

Biggest London City Banks ready to move core European operations to Frankfurt or Dublin?

Social Committee slams the 28 EU leaders for false promises

Do academia and banks favour a new Middle Ages period?

Greece will probably stay in the Eurozone but at what cost?

The ASEAN Community sees the light: the genesis of a new powerful economic and political bloc and EU’s big opportunity

OECD: Mind the financial gap that lies ahead

COP21 Paris agreement: a non legally-binding climate pact won’t stop effectively global warming while EU’s Cañete throws hardest part to next Commission

The “Colombo Declaration” adopted at the World Conference on Youth 2014

IMF to teach Germany a Greek lesson

If Macron defies Britain about the banks, Paris and London to clash over ‘La Manche’

The importance of collaboration in the digital economy

YO!Fest back in Strasbourg for the 2nd edition of the European Youth Event – 20-21 May 2016

UN Human Rights Council resolution on youth and human rights: a step forward for youth rights

Germany rules the banking industry of Eurozone

G20: Less growth, more austerity for developing countries

Rehn very reserved about growth in Eurozone

WEF Davos 2016 LIVE: “European unity and cooperation is being called on question”, Vice President Joe Biden criticizes from Davos

Why do medical students need to emigrate to become doctors in 2017?

India’s Largest Entrepreneurship Event is Back! (23-24th August 2016)

The Catcher in the Rice

Facebook wins EU approval for WhatsApp acquisition; just a sign of the times

The financial sector cripples Eurozone growth prospects

China in My Suburbs

A Sting Exclusive: “On the road to Japan-EU Economic Partnership Agreement”, by Ambassador Katakami of the Japanese Mission to the European Union

Jeroen Dijsselbloem new Eurogroup president

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s