Yesterday we gave you the first part of the suggested letter to the top men of the EU on how the UK can leave the EU. This is the second part of the letter.
UK Resumption of Sovereignty
8. Economic and Monetary Union
On I-Day, the UK will cease to be a shareholder of the European Central Bank (‘ECB’) and any UK Government appointees in the supervisory bodies of that institution will resign their posts. Simultaneously, Her Majesty’s Government and the Bank of England will make arrangements to withdraw any outstanding capital in the ECB and loans and guarantees extended to the ECB. UK private-sector financial institutions will be free to do business with the ECB at their own risk. The UK will not contribute directly to any bail-out package involving the Eurozone as a whole, or to Eurozone member-states individually, with the exception of the bilateral loan made to Ireland in 2010. The UK will continue to be an active shareholder of the IMF, the World Bank and the Bank for International Settlements.
Sterling will continue to float freely against the euro, the dollar and other currencies. UK interest rates will continue to be set by the Bank of England’s Monetary Policy Committee. The focus of UK economic policy will continue to be to reduce the annual government deficit to zero, then to maintain a substantial annual surplus of receipts over expenditure, until such time as the national debt has reduced to 50% of GDP.
The Bank of England will continue to work closely with the European Central Bank and other countries’ national central banks, and with the IMF and Bank for International Settlements.
10. The City of London
On I-Day, the financial markets operating in the City of London, Edinburgh and elsewhere in the UK will cease to be regulated by the EU. Regulation and supervision of those markets will revert exclusively to the British authorities.
11. The Common Agricultural Policy and Common Fisheries Policy
The UK will withdraw from the CAP and the CFP on I-Day. Thereafter, in accordance with the provisions of the WTO and other relevant international and regional bodies, including the Commonwealth, the UK will provide financial support to its farmers and fishermen for a minimum period of five years so that they experience no reduction in their income as a consequence of withdrawal. Similar arrangements have been put into place for the transitional period in respect of EU capital subsidies to other British private and public-sector entities.
12. Competition Policy
On I-Day, British competition policy (monopolies, oligopolies, predatory pricing etc) will cease to be applied and regulated by European Union bodies, and revert exclusively to UK authorities. We emphasise that, from I-Day onwards, foreign-owned entities (including EU-owned entities) operating in the UK will continue to be treated without discrimination on exactly the same basis as British-owned entities.
13. European Investment Bank
On I-Day, the UK will cease to be a shareholder of the EIB and UK Government appointees in the supervisory bodies of that institution will resign their posts. Simultaneously, Her Majesty’s Government and the Bank of England will withdraw any outstanding capital, loans and guarantees extended to the EIB. UK private-sector financial institutions will be free to do business with the EIB at their own risk.
14. Value Added Tax
From I-Day onwards, the UK will no longer be bound by EU-set VAT rates and rules on the types of products and services to which they apply. Her Majesty’s Government will examine whether VAT should be replaced altogether by different forms of taxation.
15. Foreign Policy
On I-Day the UK will withdraw from all direct EU foreign policy involvement. Thereafter, the UK will conduct its own foreign policy, through the United Nations and in cooperation with regional bodies and individual states, including the EU and its 27 member states.
On I-Day the UK will cease to participate in EU defence planning, activities and operations, including its arms-procurement agencies. From I-Day onwards, any planning and/or deployment of British armed forces in the defence of the European continent will be conducted through NATO, and with individual EU countries such as France.
17. UK Territorial Waters
On I-Day, the boundary-line of UK territorial waters will revert to that existing in 1972 prior to UK accession to the then EEC. Within that boundary-line, exclusive ownership and control of fishing, hydrocarbon and mineral resources will revert to the UK. From I-Day onwards, management of fishing and other resources inside the boundary-line will be the exclusive responsibility of the British authorities, who will cooperate fully with their opposite numbers in the EU, its member-states, the Faroes, Norway, Iceland, Canada, the United States, Russia and other countries.
18. Immigration and Asylum
On I-Day, the UK will cease to be bound by EU policies on immigration and asylum and resume full and absolute control of its borders. From I-Day onwards, the UK will set its own immigration and asylum policies. These will be communicated to other countries, including EU countries, in due course.
19. Energy and Climate Change
On I-Day, energy and climate change policies will cease to be regulated by European Union bodies, and revert exclusively to UK authorities. UK policy in these areas will be re-balanced in favour of security of supply (externally, in respect of geographical diversification of supplies of oil, gas, coal, solar energy and nuclear fuel; internally, in respect of ensuring a continuous stable non-variable supply of electricity across the whole of the United Kingdom). We emphasise that, from I-Day onwards, in respect of energy and climate change matters, foreign-owned entities (including EU-owned entities) operating in the UK will continue to be treated without discrimination on exactly the same basis as British-owned entities.
20. Emergency Healthcare
From I-Day onwards, the UK will continue to participate in the European Health Insurance Card (“EHIC”) scheme, on the same basis as EU states, EEA states and Switzerland, providing residents of participating countries with emergency healthcare when abroad in those territories.
21. European Court of Human Rights
On I-Day, the UK will withdraw from the European Convention on Human Rights and the European Court of Human Rights. From I-Day onwards, British courts will no longer be bound by judgements or precedents deriving from EHCR rulings. The UK re-affirms its adherence to the UN’s Universal Declaration of Human Rights of 1948, and the UN’s International Bill of Human Rights of 1966, from which the European Convention on Human Rights and the European Court of Human Rights are derived.
22. Other Policy Areas
In addition to the policy areas specified above, the UK, on I-Day, will cease involvement in all other EU policy areas (banking supervision, health and safety, policing, education, regulation of working-time, human rights, etc. etc).
23. Enabling Legislation in the UK
Bills incorporating the measures set out above will be laid before the House of Commons in the months to come, becoming effective on I-Day. The main domestic legislation to be repealed will be the European Communities Act 1972, by which the UK acceded to the then European Economic Community, and the amendments giving effect to the adoption by the UK of the Single European Act and the treaties of Maastricht, Nice, Amsterdam and Lisbon.
Her Majesty’s Government looks forward to working with the institutions and agencies of the EU and its 27 member states to ensure that the transition described herein takes place in a timely and efficient manner with minimal disruption so that we can craft a positive new relationship for the future.
The Prime Minister
The Leader of Her Majesty’s Opposition
London, 19th June 2017