A New Settlement for the UK in the EU

On Thursday 23 June, the UK will hold a referendum on its membership of the European Union. In this Just the Facts, which is part of a series European Movement Ireland is producing on the forthcoming referendum, we look at the reform agreement that the UK has negotiated for its continued membership in the EU, if there is a vote to remain.

Background
In the run up to the 2015 UK general election, the Conservative Party committed in its manifesto to renegotiate the UK’s membership of the EU, and to hold an in/out referendum on that basis. In June 2015, after being elected Prime Minister of a majority Conservative government, David Cameron set out his plans to the other European leaders at a meeting of the European Council.

In a letter to European Council President, Donald Tusk, in November 2015, Prime Minister Cameron set out proposals in four key areas in which the UK was seeking reform: economic governance; competitiveness; sovereignty; and immigration. President Tusk then prepared a draft agreement to be decided upon at the European Council meeting in February 2016.

After intense consultations and negotiations, European leaders unanimously agreed on 19 February 2016 a deal known as the ‘new settlement for the UK in the EU’ which will come into effect if the UK votes to remain in the EU. After presenting the deal to his Cabinet, Prime Minister Cameron announced that the referendum on EU membership would take place on 23 June 2016.

Agreed reforms
The ‘new settlement for the UK in the EU’ includes the agreements detailed below, largely in line with the areas of reform proposed by Prime Minister Cameron.

Economic governance

• There should be no discrimination based on whether a country is a member of the Eurozone or not.
• Non-Eurozone countries cannot impede further integration in the Eurozone, but will not have to contribute to emergency and crisis measures to safeguard the Eurozone.
• A non-Eurozone country can request Council discussions on Euro laws that may affect their financial stability; the Bank of England will remain responsible for supervising the financial stability of the UK.

Competitiveness

• The EU and Member States will enhance competitiveness; fully implementing and strengthening the internal market.
• The EU and Member States will take steps towards ‘better regulation’; lowering burdens on businesses.

Sovereignty

• The UK is not committed to further political integration in the EU and the concept of ‘ever closer union’ will not apply to the UK.
• The power of national Parliaments to block EU legislation by working together will be strengthened.

Social benefits and the free movement of persons

• EU legislation will be amended to provide for an ‘emergency brake’ to limit full access to in-work benefits by newly-arrived EU migrants.
• EU legislation will be amended to give all Member States the option to scale the level of child benefit claimed by EU migrants based on where the child lives.
• With regard to future enlargements of the EU, transitional measures restricting the free movement of persons will be provided for.

The parts of the deal that relate to economic governance and sovereignty will be incorporated into the EU Treaties at the next opportunity for Treaty revision.

Reaction
Reactions to the ‘new settlement’ deal were mixed. Prime Minister Cameron called it “something worth fighting for”, arguing that he had delivered on the four promised areas of reform, while Nigel Farage MEP referred to it as “hardly worth the wait”. Some commentators pointed out that concessions made in the negotiations in order to get a deal with the leaders of the 27 other EU Member States had weakened some of Prime Minister Cameron’s original proposals.

While other EU leaders have agreed with Prime Minister Cameron that the deal is legally binding and irreversible, questions have been raised elsewhere about its legal nature. If the UK votes to remain a member of the EU on 23 June, the Decision of the European leaders will have the legal character and effect of a binding international agreement, such as the Decision which was made to address the concerns of the Irish people following the rejection of the Treaty of Lisbon in June 2008. The full and final effect of the ‘new settlement’ deal on EU law will not be complete until it is incorporated into the EU Treaties.

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