Since the introduction of pro-market reforms in 1978, China has emerged as a global economic powerhouse and it is today the EU’s second-largest trading partner.
Can a country do better after leaving the EU? Indeed, we can perform an even more granular analysis and seek to establish in which policy areas the greater policy flexibility and decentralisation which comes with departure might outweigh the cost of losing the EU’s four freedoms and its constitutional barriers against bad government policy.
Western governments have developed unfunded social insurance programmes where retiree benefits are paid for from the taxes of the working-age population. This means that an ageing population leads to rising expenditures that cannot be covered without increasing taxes on the young.
Regulation, specifically Interchange Fee caps on credit and debit cards, would be especially harmful to consumers and new merchants or start-up businesses that rely on or are developing new innovative solutions for the e-commerce market.
Higher state pension ages are not only possible (given longer life expectancy) and desirable (given the fiscal costs of state pensions) but later retirement should, in fact, lead to better average health in retirement.
With public confidence in the European project waning, the idea of initiating a ‘civil dialogue’ with the public emerged in the mid-1990s as a way of bolstering the EU’s democratic legitimacy. Citizens have been ventriloquised through ‘sock puppet’ charities, think tanks and other ‘civil society’ groups which have been hand-picked and financed by the European Commission (EC).
Non-tariff barriers are an important impediment to trade for less developed countries. They need to be brought to the forefront of the trade debate if developing countries are to move into the export of higher value added products.