Brexit Debate

Background Information

One of the items on the Conservative Partys winning manifesto at the 2015 General
Election was the so-called in-out referendum on the UKs membership of the EU before the
end of 2017. Because the Tories won the Election, they now have a mandate to carry out
the promises made in their manifesto.

David Cameron, the Prime Minister, has promised to renegotiate the terms of Britains EU
membership before the referendum. In particular, he would like to:

Negotiate an opt-out clause on the EUs aim of ever closer union

Boost the sovereignty of the national parliaments within the EU, so that they could
work together to block any EU legislation that they do not want
Seek stronger safeguards for the City of London and other financial centres outside
the Eurozone
Reduce unnecessary red-tape and bureaucracy to make the EU more competitive
Improve trade relationships with growing economies and better protect the rights of
non-Eurozone economies

In August 2015, George Osborne (Chancellor of the Exchequer) embarked on a diplomatic

tour of European leaders to kickstart these negotiations.

There are currently a number of possible renegotiated-membership options under

consideration:

1. The Norwegian Model: countries such as Sweden and Finland form part of the
European Economic Area (EEA) but not the EU this gives them access to Single
Market (except in financial services) but means they do not have to apply EU rules on
justice, home affairs, fisheries and agriculture
2. The Swiss Model: Switzerland is neither part of the EU nor the EEA; instead it
negotiates trade treaties on a case-by-case basis to suit its own economy effectively
this would require a detailed Free Trade Agreement
3. The Turkish Model: This model would allow the UK to be part of a customs union
allowing free trade in manufactured goods but nothing else
4. The Clean-Break Model: the UK could completely abandon its relationship with the
EU, and simply rely on its membership of the World Trade Organisation to ease
trading relationships

Whilst political relationships are clearly an important element, most of the debate so far
has been concerned with the economic impact of staying in or leaving the EU.
 Key Terms Glossary Activity

Research and note down the definitions / explanations of the key terms below (these terms
are in bold red font in the background information page).

Key Term Definition / explanation

Manifesto

Referendum

Mandate

Prime Minister

Opt-Out
Clause

Sovereignty

Eurozone

Red-tape

Bureaucracy

Chancellor of
the Exchequer
European
Economic Area

Single Market

Free Trade
Agreement
Customs
Union
World Trade
Organisation
 Debate Activity

Each student or small group of students should be given one theme to explore in terms of
assessing whether the UK should leave or stay in the EU.

They should research and note down three arguments in favour and three arguments
against for their given theme. This is ideal for a research homework task.

In a follow-up lesson, students should present their 6 arguments to their peers, and decide
which arguments, in or out, are more persuasive. The rest of the class should note down
the key arguments on their debate summary sheet, and decide for themselves which of the
in or out arguments for that theme are more persuasive.

An optional extension activity would be for students to work on the following essay:

The economic benefits of EU membership for the UK outweigh the benefits of

leaving the EU. Discuss

Students could either write the full essay, or a plan, or simply work on constructing
excellent opening paragraphs / concluding paragraphs.

Useful sources of information

UK and the EU: Better Off Out or In? BBC News website, 22/05/2015

The Economic Consequences of Leaving the EU A report by the Centre for European
Reform, 9/06/2014

The Economic Impact of EU Membership on the UK A research briefing by the House of

Commons Library, 18/09/2013

The UK and Europe: Costs, Benefits, Options A report by Regents University, 2013

Should the UK Stay or Go? A blog analysis by the LSEs European Institute

Would Britain thrive outside the EU? Szu Ping Chan, The Telegraph, 25/03/2015

UK membership of the European Union, Geoff Riley, tutor2u website, 22/02/2015

CBI Factsheet 2: Benefits of EU membership outweigh the costs, The CBI

A Blueprint for Britain: Openness not Isolation Iain Mansfield, winner of the IEA Brexit Prize
2014
 Should Britain stay in the EU or leave? Debate Summary Sheet

Theme One: Impact on the Labour Market

Better Off In Better Off Out

Which arguments are strongest and why?

Theme Two: Impact on the UKs Financial Services Sector

Better Off In Better Off Out

Which arguments are strongest and why?

 Theme Three: Impact on the Trade Balance
Better Off In Better Off Out

Which arguments are strongest and why?

Theme Four: Impact on the Fiscal Balance

Better Off In Better Off Out

Which arguments are strongest and why?

 Theme Five: Impact on Economic Policy
Better Off In Better Off Out

Which arguments are strongest and why?

Theme Six: Impact on Foreign Direct Investment

Better Off In Better Off Out

Which arguments are strongest and why?