EEA The Brexit Solution? - Not Really!

New briefing: As the UK searches for a post-Brexit plan, is the EEA a viable option?

As the new UK government begins to formulate a Brexit plan, many businesses and some politicians have turned to the European Economic Area (EEA) model – or some variant of it – which would leave the UK in a relationship with the EU that is similar to that of Norway and keep it in the single market. The EEA option comes with some notable benefits. It provides an ‘off-the-shelf’ model, thereby minimising short-term economic disruption and uncertainty, and could help smoothen some of the regional differences thrown up by the Brexit vote, such as those raised by Scottish First Minister Nicola Sturgeon. EEA membership also means exiting some EU policies – such as agriculture and fisheries – and regaining the ability to negotiate stand-alone trade agreements with non-EU countries. However, a Norway-style relationship is unlikely to be a viable long-term option for the UK. Firstly, it is a poor fit when set against the Leave side’s key arguments during the referendum campaign: restoring full control over UK immigration policy, restoring UK sovereignty over lawmaking including vis-à-vis the European Court of Justice, eliminating the UK’s financial contribution to the EU, and reducing the burden of EU legislation on business. Secondly, and perhaps just as importantly, it is unlikely that such an EU-satellite status would satisfy the national self-image of a major G7 economy with deeper trade and foreign policy links across the world, such as the UK. Open Europe.