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10
DOWNING
STREET
LONDON
SWtA 2AA
THE PRIME MINISTER
10
November 2015
A NEW SETTLEMENT FOR THE UNITED KINGDOM IN A
REFORMED EUROPEAN UNION
Thank you for inviting me to write setting out the areas where I
am
seeking
reforms to address the concerns
of
the British people over our membership
of
the European Union.
As you said, the purpose
of
this letter is not to describe the precise means, or
detailed legal proposals, for bringing the reforms we seek into effect. That is a
matter for the negotiation, not least
as
there may, in each case, be different ways
of
achieving the same result.
I am grateful for the technical discussions that have taken place over the last
few months and,
as
we move
to
the formal stage
of
negotiations, I welcome this
opportunity to explain why these changes are needed and how I believe they can
benefit all Member States. I am also making a speech today
to
update the
British people on the process for the negotiation and how I intend to address
their concerns.
I have been encouraged in many
of
my conversations with my fellow Heads
of
Government in recent months that there is wide understanding
of
the concerns
that I have raised, and
of
the case for reforms that would benefit the European
Union as a whole. I particularly appreciate your own personal support
throughout.
The European
Union has a long history
of
respecting the differences
of
its many
Member States and
of
working to overcome challenges in a way that works for
the whole European Union. For example, with the protocols and other
instruments agreed for Denmark and Ireland, the EU was able to arrive at a
settlement, which worked for each country and did not disadvantage other
Member
States.
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Our concerns really boil down to one word: flexibility. And it is in this spirit
that I set out the four main areas where the United Kingdom is seeking reform.
Proposals for reform
1.
Economic Governance
There are today effectively two sorts
of
members
of
the European Union. There
are Euro members and non-Euro members. As set out in Protocol
15,
the
United Kingdom has a permanent opt-out from the Eurozone. Other countries
will in due course join the Euro. But, for now, there are nine
of
us outside; and
it matters to all
of
us that the Eurozone succeeds.
So we do not want to stand in the way
of
measures Eurozone countries decide to
take
to
secure the long-term future
of
their currency. But we want
to
make sure
that these changes will respect the integrity
of
the Single Market, and the
legitimate interests
of
non-Euro members.
I am confident we can achieve an agreement here that works for everyone.
Britain is not seeking a new opt-out for the UK in this area - we have the
opt-out from the single currency we need. Nor are we looking for a veto over
what is done in the Eurozone. What we seek are legally binding principles that
safeguard the operation
of
the Union for all
28
Member States - and a safeguard
mechanism to ensure these principles are respected and enforced.
These principles should include recognition that:
• The EU has more than one currency.
• There should be
no
discrimination and no disadvantage for any business
on the basis
of
the currency
of
their country.
• The integrity
of
the Single Market must be protected.
• Any changes the Eurozone decides
to
make, such as the creation
of
a
banking union, must be voluntary for non-Euro countries, never
compulsory.
• Taxpayers in non-Euro countries should never be financially liable for
operations to support the Eurozone
as
a currency.
• Just
as
financial stability and supervision has become a key area
of
competence for Eurozone institutions like the ECB, so financial stability
and supervision is a key area
of
competence for national institutions like
the Bank
of
England for non-Euro members.
• And any issues that affect all Member States must be discussed and
decided by all Member States.
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2. Competitiveness
People across Europe want the European Union to help generate growth and
jobs. The United Kingdom has always been a champion
of
making Europe
more competitive.
So the United Kingdom welcomes the current European Commission's focus on
supporting economic growth and scaling back unnecessary legislation. This has
included some important measures that British businesses have called for, such
as the further steps towards a single digital market, which could add 3 per cent
to EU GDP; and a Capital Markets Union, which will help get finance
to
entrepreneurs and growing businesses.
The United Kingdom also welcomes the new trade strategy published last
month, reflecting an agenda we have been advocating for years and including
pursumg potentially massive trade deals with America, China, Japan and
ASEAN.
But with the best will in the world, we would all acknowledge that the EU can
go much further. In particular, for all we have achieved in stemming the flow
of
new regulations, the burden from existing regulation is still too high.
So
the
United Kingdom would like to see a target to cut the total burden on business.
The EU should also do more to fulfil its commitment
to
the free flow
of
capital,
goods and services. The United Kingdom believes we should bring together all
the different proposals, promises and agreements on the Single Market, on
trade, and on cutting regulation into a clear long-term commitment
to
boost the
competitiveness and productivity
of
the European Union and
to
drive growth
and jobs for all.
3. Sovereignty
As you know, questions
of
sovereignty have been central to the debate about the
European Union in Britain for many years. I have three proposals in this area.
First, I want to end Britain's obligation to work towards an "ever closer union"
as set out in the Treaty.
It
is
very important to make clear that this commitment
will no longer apply to the United Kingdom. I want
to
do this in a formal,
legally-binding and irreversible way.
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Second, while the European Parliament plays an important role, I want
to
enhance the role
of
national parliaments, by proposing a new arrangement
where groups
of
national parliaments, acting together, can stop unwanted
legislative proposals. The precise threshold
of
national parliaments required
will be a matter for the negotiation.
Third, I want to see the
EU' s commitments
to
subsidiarity fully implemented,
with clear proposals to achieve that. As the Dutch have said, the ambition
should be "Europe where necessary, national where possible".
In addition, the
UK will need confirmation that the EU institutions will fully
respect the purpose behind the JHA Protocols
in
any future proposals dealing
with Justice and Home Affairs matters, in particular
to
preserve the UK's ability
to choose
to
participate. National Security is - and must remain - the sole
responsibility
of
Member States, while recognising the benefits
of
working
together on issues that affect the security
of
us all.
4. Immigration
The UK believes in an open economy. But we have got
to
be able
to
cope with
all the pressures that free movement can bring - on our schools, our hospitals
and our public services. Right now, the pressures are too great.
The issue is one
of
scale and speed. Unlike some other Member States,
Britain's population
is
already expanding. Our population
is
set
to
reach over
70 million in the next decades and we are forecast
to
become the most populous
country in the EU by 2050. At the same time, our net migration
is
running at
over 300,000 a year. That is not sustainable. We have taken lots
of
steps
to
control immigration from outside the
EU.
But we need
to
be able to exert
greater control on arrivals from inside the EU too.
Britain has always been an open, trading nation, and we
do
not want
to
change
that. But we
do
want to find arrangements to allow a Member State like the UK
to restore a sense
of
fairness
to
our immigration system and
to
reduce the
current very high level
of
population flows from within the EU into the
UK.
These have been unplanned and are much higher than forecast - far higher than
anything the EU' s founding fathers ever envisaged. These very substantial
flows
of
population have,
of
course, also had a significant impact on a number
of
Member States, many
of
whose most highly qualified citizens have departed
en masse. So this
is
a shared challenge.
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We need to ensure that when new countries are admitted to the EU in the future,
free movement will not apply to those new members until their economies have
converged much more closely with existing Member States.
We also need to crack down on the abuse
of
free movement, an issue on which I
have found wide support in my discussions with colleagues. This includes
tougher and longer re-entry bans for fraudsters and people who collude in sham
marriages.
It
means addressing the fact that it is easier for an EU citizen to
bring a non-EU spouse to Britain than it is for a British citizen to
do
the same.
It
means stronger powers to deport criminals and stop them coming back,
as
well as preventing entry in the first place. And it means addressing ECJ
judgments that have widened the scope
of
free movement in a way that has
made it more difficult to tackle this kind
of
abuse.
But we need to go further
to
reduce the numbers coming here. As I have said
previously, we can reduce the flow
of
people coming from within the EU by
reducing the draw that our welfare system can exert across Europe. So we have
proposed that people coming to Britain from the EU must live here and
contribute for four years before they qualify for in-work benefits or social
housing. And that we should end the practice
of
sending child benefit overseas.
I understand how difficult some
of
these issues are for other Member States and
I look forward to discussing these proposals further so we can find a solution
that deals with this issue.
NEXT STEPS
As we agreed, the details
of
the reforms in each area are a matter for the
negotiation itself. But I hope that this letter can provide a clear basis for
reaching an agreement that would,
of
course, need to be legally-binding and
irreversible - and where necessary have force in the Treaties.
I look forward to a substantive discussion at the December European Council.
It
remains my aim to conclude an agreement at the earliest opportunity, but the
priority is to get the substance right.
I believe that reform in these areas would address the UK's concerns and
provide a fresh and lasting settlement for our membership
of
the
European Union. Furthermore, I believe such reform is both reasonable and in
the wider interests
of
the European Union
as
a whole.
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The United Kingdom is the EU's second largest economy, the fifth biggest in
the world. We bring an enormous contribution - political, economic, financial
- to the European Union.
If
we are able to reach an agreement, it will show the
world that, amongst the many more difficult issues it faces, the European Union
is
flexible enough to accommodate the concerns
of
its members.
I hope and believe that together we can reach agreement on each
of
these four
areas.
If
we can, I am ready to campaign with all my heart and soul to keep
Britain inside a reformed European Union that continues to enhance the
prosperity and security
of
all its Member States.
I look forward to discussing this with you and colleagues further in the weeks
ahead.
I am copying this letter to the President
of
the European Commission, the
President
of
the European Parliament and all Heads
of
State and Government in
the European Council.
His Excellency Mr Donald Tusk
