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| Scotland could seek 'Norway model' on EU | Scotland could seek 'Norway model' on EU |
| (35 minutes later) | |
| Scotland could seek to become a member of the European Economic Area (EEA) when the UK leaves the EU, BBC Scotland has learned. | Scotland could seek to become a member of the European Economic Area (EEA) when the UK leaves the EU, BBC Scotland has learned. |
| The so-called Norway model has been privately floated as a possibility as the Scottish government seeks ways to maintain Scotland's links with the EU. | The so-called Norway model has been privately floated as a possibility as the Scottish government seeks ways to maintain Scotland's links with the EU. |
| BBC Scotland's political editor Brian Taylor said the plan could give EU citizens the right to work in Scotland. | BBC Scotland's political editor Brian Taylor said the plan could give EU citizens the right to work in Scotland. |
| But it could only happen if the UK and European institutions agreed. | But it could only happen if the UK and European institutions agreed. |
| The idea emerged as a leaked memo about Brexit claimed splits in the UK cabinet mean there is still no overall plan for leaving the EU. | |
| But Transport Secretary Chris Grayling said it was not a government memo, and he rejected its contents. | |
| A UK government source said the document was an unsolicited pitch for work from a consultancy firm. | |
| The Scottish government has said it will publish plans aimed at protecting Scotland's place in Europe in the coming weeks. | The Scottish government has said it will publish plans aimed at protecting Scotland's place in Europe in the coming weeks. |
| The EEA includes the existing EU states plus Iceland, Liechtenstein and Norway. | The EEA includes the existing EU states plus Iceland, Liechtenstein and Norway. |
| Membership of the EEA allows Norway to have full access to the single market, with the country obliged to make a financial contribution to the EU budget and to accept the majority of EU laws. | Membership of the EEA allows Norway to have full access to the single market, with the country obliged to make a financial contribution to the EU budget and to accept the majority of EU laws. |
| Norwegians also have free movement across the EU, with EU citizens free to live and work in Norway too, but the country is not part of the customs union, so it is able to set tariffs for other countries | Norwegians also have free movement across the EU, with EU citizens free to live and work in Norway too, but the country is not part of the customs union, so it is able to set tariffs for other countries |
| Norway is exempt from EU rules on agriculture, fisheries, justice and home affairs - but the downside is that Norwegians have no say over how the rules of the single market are created. | Norway is exempt from EU rules on agriculture, fisheries, justice and home affairs - but the downside is that Norwegians have no say over how the rules of the single market are created. |
| Supporters of Scotland attempting to secure EEA membership say it would allow people from EEA countries to work in Scotland even if they faced constraints elsewhere in the UK. | Supporters of Scotland attempting to secure EEA membership say it would allow people from EEA countries to work in Scotland even if they faced constraints elsewhere in the UK. |
| They argue that people employed in Scotland are already identified by a distinct tax code because of Holyrood's new tax powers. | They argue that people employed in Scotland are already identified by a distinct tax code because of Holyrood's new tax powers. |
| But the UK government might take some convincing if ministers feared it could lead to back door access to the wider UK through Scotland. | But the UK government might take some convincing if ministers feared it could lead to back door access to the wider UK through Scotland. |
| The idea emerged as Holyrood prepared to debate a Scottish government motion urging MSPs to back Scotland staying within the European single market. | The idea emerged as Holyrood prepared to debate a Scottish government motion urging MSPs to back Scotland staying within the European single market. |
| The motion calls on Scotland's place in the single market to be "fully protected", and calls for clarity from the UK government on its proposals to leave the EU, including whether it will seek continued membership of the single market. | The motion calls on Scotland's place in the single market to be "fully protected", and calls for clarity from the UK government on its proposals to leave the EU, including whether it will seek continued membership of the single market. |
| Analysis by Brian Taylor, BBC Scotland Political Editor | Analysis by Brian Taylor, BBC Scotland Political Editor |
| There is a discussion going on in government, there is a discussion going on among advisors, there's a discussion going on in Scotland. I wouldn't really say it has emerged as a ministerial idea at this stage, but it is kicking around fairly seriously. | There is a discussion going on in government, there is a discussion going on among advisors, there's a discussion going on in Scotland. I wouldn't really say it has emerged as a ministerial idea at this stage, but it is kicking around fairly seriously. |
| The idea being suggested is that perhaps the UK as a whole could join the European Economic Area, which consists of the EU members plus Norway, Lichtenstein and Iceland. | The idea being suggested is that perhaps the UK as a whole could join the European Economic Area, which consists of the EU members plus Norway, Lichtenstein and Iceland. |
| They adopt the four freedoms of the EU - goods, services, capital and labour - but they're not in the customs union, which means they can set tariffs for other countries around the world. | They adopt the four freedoms of the EU - goods, services, capital and labour - but they're not in the customs union, which means they can set tariffs for other countries around the world. |
| But if it is not the UK then could it be Scotland? Could there be an agreement - it would have to be via the UK, the existing member state, and the European institutions - that allows Scotland to join the EEA? | But if it is not the UK then could it be Scotland? Could there be an agreement - it would have to be via the UK, the existing member state, and the European institutions - that allows Scotland to join the EEA? |
| The big snag for Scotland, among many snags, is that it is autonomous states who are members of the EEA. | The big snag for Scotland, among many snags, is that it is autonomous states who are members of the EEA. |
| Now, those who support this idea say the European institutions are remarkably flexible and they can find a way around it. | Now, those who support this idea say the European institutions are remarkably flexible and they can find a way around it. |
| It would have to be, though, with agreement with the UK - that is the core of the thing. That is why so much of Nicola Sturgeon and Michael Russell's efforts are predicated upon getting the UK to agree to whatever emerges as the shape of the post-Brexit UK in Scotland. | It would have to be, though, with agreement with the UK - that is the core of the thing. That is why so much of Nicola Sturgeon and Michael Russell's efforts are predicated upon getting the UK to agree to whatever emerges as the shape of the post-Brexit UK in Scotland. |
| Speaking ahead of the debate, SNP MSP Bruce Crawford said the UK government was "mired in confusion" over questions such as whether the UK and Scotland should be in the single market. | Speaking ahead of the debate, SNP MSP Bruce Crawford said the UK government was "mired in confusion" over questions such as whether the UK and Scotland should be in the single market. |
| He added: "Every area of Scotland voted to remain in the EU and today's debate is an opportunity for the Tories and all other parties to reject a hard Brexit and stand up for Scotland. | He added: "Every area of Scotland voted to remain in the EU and today's debate is an opportunity for the Tories and all other parties to reject a hard Brexit and stand up for Scotland. |
| "At this crucial stage while the UK government is still working out its negotiating position, this is the time to make Scotland's voice heard and challenge head-on those who want to lead us out of the single market, with all the costs to Scottish jobs and the economy." | "At this crucial stage while the UK government is still working out its negotiating position, this is the time to make Scotland's voice heard and challenge head-on those who want to lead us out of the single market, with all the costs to Scottish jobs and the economy." |
| Scottish Conservative MSP Murdo Fraser challenged the Scottish government to set out exactly what it wants from Brexit. | Scottish Conservative MSP Murdo Fraser challenged the Scottish government to set out exactly what it wants from Brexit. |
| 'Growth shock' | 'Growth shock' |
| Mr Fraser said: "You would think nearly five months on from the Brexit vote, after all the attention paid to this issue by the first minister and her cabinet, we might be a little further forward. | Mr Fraser said: "You would think nearly five months on from the Brexit vote, after all the attention paid to this issue by the first minister and her cabinet, we might be a little further forward. |
| "But there is still absolutely no clarity on where the Scottish government stands on these matters, while all the time it demands absolute clarity from the UK government which is conducting the negotiation." | "But there is still absolutely no clarity on where the Scottish government stands on these matters, while all the time it demands absolute clarity from the UK government which is conducting the negotiation." |
| Labour's shadow chancellor, John McDonnell, told the BBC's Good Morning Scotland programme that the UK could be "divided" over its approach to EU membership. | |
| He said: "We get the best deal when we negotiate together, and we have got to respect the democratic decision in the referendum. | |
| "In different constituencies, different regions, there were different views, but the overall view unfortunately was to withdraw from the EU. | |
| "Let's work together constructively to get the best deal possible. What we need to do is make sure the Scottish government is working with the UK government overall." | |
| It comes as a report prepared for Holyrood's economy committee estimated that Scotland could face further cuts in a Brexit "growth shock". | It comes as a report prepared for Holyrood's economy committee estimated that Scotland could face further cuts in a Brexit "growth shock". |
| Economic think-tank IPPR Scotland said that if UK Chancellor Phillip Hammond uses public spending cuts to plug the whole of the £25bn UK budget gap per year by 2019/20 projected by the Institute for Fiscal Studies (IFS), it would cause a further £1.3bn cut to Scottish funds. | Economic think-tank IPPR Scotland said that if UK Chancellor Phillip Hammond uses public spending cuts to plug the whole of the £25bn UK budget gap per year by 2019/20 projected by the Institute for Fiscal Studies (IFS), it would cause a further £1.3bn cut to Scottish funds. |
| The scenario was one of three modelled by the think-tank, which also examined the impact of Westminster using public spending to deal with half or quarter of the budget gap - found to cause £670m and £330m further cuts to the Scottish settlement. | The scenario was one of three modelled by the think-tank, which also examined the impact of Westminster using public spending to deal with half or quarter of the budget gap - found to cause £670m and £330m further cuts to the Scottish settlement. |
| IPPR Scotland director Russell Gunson said: "Any further cuts to day-to-day spending in the rest of the UK could mean cuts for Scotland's budgets too, on top of very significant cuts already planned over the coming years." | IPPR Scotland director Russell Gunson said: "Any further cuts to day-to-day spending in the rest of the UK could mean cuts for Scotland's budgets too, on top of very significant cuts already planned over the coming years." |