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| Can the UK adopt the 'Norway model' as its Brexit solution? Can the UK adopt the 'Norway model' as its Brexit solution? | |
| (about 2 hours later) | |
| David Davis’s suggestion that the government would consider making contributions “in any shape or form” to the EU budget in exchange for access to the single market suggests one option for Brexit could be the so-called Norway model. | David Davis’s suggestion that the government would consider making contributions “in any shape or form” to the EU budget in exchange for access to the single market suggests one option for Brexit could be the so-called Norway model. |
| What is the Norway model, how does it work, what does it cost, and might it be suitable for Britain given what we also know about the government’s priorities for Brexit? | What is the Norway model, how does it work, what does it cost, and might it be suitable for Britain given what we also know about the government’s priorities for Brexit? |
| What is the Norway model?The Norway model is membership of the the European Economic Area (EEA), an extension of the EU’s internal market which is made up of the 28 member states and members of the European Free Trade Association (EFTA), which includes Norway. In order to join the EEA after leaving the EU, Britain would first have to join the EFTA. | What is the Norway model?The Norway model is membership of the the European Economic Area (EEA), an extension of the EU’s internal market which is made up of the 28 member states and members of the European Free Trade Association (EFTA), which includes Norway. In order to join the EEA after leaving the EU, Britain would first have to join the EFTA. |
| What would be the advantages for the UK?In principle, EEA-EFTA membership would give Britain access to the single market and to selected EU programmes in exchange for a financial contribution but without the additional burdens of being a full European Union member. The UK could benefit from the aspects of European integration it chooses, but avoid those it dislikes, such as political integration. | What would be the advantages for the UK?In principle, EEA-EFTA membership would give Britain access to the single market and to selected EU programmes in exchange for a financial contribution but without the additional burdens of being a full European Union member. The UK could benefit from the aspects of European integration it chooses, but avoid those it dislikes, such as political integration. |
| How does it work?The EEA requires accepting the core principles of the EU’s internal market, including free movement of people: in fact, per head of its population, Norway has significantly higher EU immigration levels than Britain. It also entails following the EU’s social and product rules in areas such as employment, the environment and consumer protection, which are considered an integral part of the single market. | How does it work?The EEA requires accepting the core principles of the EU’s internal market, including free movement of people: in fact, per head of its population, Norway has significantly higher EU immigration levels than Britain. It also entails following the EU’s social and product rules in areas such as employment, the environment and consumer protection, which are considered an integral part of the single market. |
| EEA-EFTA countries are bound by whatever legislation the EU adopts in these areas, but do not get to vote on the rules or take part in the decision-making process, beyond trying to influence its early stages. A report for the Norwegian government has said Norway “is, in practice, bound to adopt EU policies and rules on a broad range of issues without being a member and without voting rights”. | EEA-EFTA countries are bound by whatever legislation the EU adopts in these areas, but do not get to vote on the rules or take part in the decision-making process, beyond trying to influence its early stages. A report for the Norwegian government has said Norway “is, in practice, bound to adopt EU policies and rules on a broad range of issues without being a member and without voting rights”. |
| EEA-EFTA countries such as Norway are not members of the Council of the EU, and are not represented in the European parliament. One of the prices of preferential access to the single market is becoming a law-taker, not law-maker. | EEA-EFTA countries such as Norway are not members of the Council of the EU, and are not represented in the European parliament. One of the prices of preferential access to the single market is becoming a law-taker, not law-maker. |
| What are the costs?For its membership of the European single market and the EU programmes and agencies it takes part in (mainly research, education, social policy, culture, criminal justice and home affairs), Norway makes a total annual contribution of about €870m. It does not pay into the central EU budget, but transfers money directly to poorer EU states and contributes to specific programmes. | What are the costs?For its membership of the European single market and the EU programmes and agencies it takes part in (mainly research, education, social policy, culture, criminal justice and home affairs), Norway makes a total annual contribution of about €870m. It does not pay into the central EU budget, but transfers money directly to poorer EU states and contributes to specific programmes. |
| Norway’s net contribution is difficult to work out because it does not publish figures for its gains from the EU, such as research grants. The group In Facts estimates Norway and the UK pay about the same per person: about £96 per head. But other analysts have reached different conclusions: Open Europe suggests the UK contribution is €139 per person, compared to Norway’s €107. | Norway’s net contribution is difficult to work out because it does not publish figures for its gains from the EU, such as research grants. The group In Facts estimates Norway and the UK pay about the same per person: about £96 per head. But other analysts have reached different conclusions: Open Europe suggests the UK contribution is €139 per person, compared to Norway’s €107. |
| Would this work for Britain?If it is indeed willing to make a financial contribution, can agree on the amount, and assuming the other EFTA members approve (which is not guaranteed – Norway has expressed misgivings), there is no reason why Britain could not join the EEA through EFTA to obtain preferential single market access. | Would this work for Britain?If it is indeed willing to make a financial contribution, can agree on the amount, and assuming the other EFTA members approve (which is not guaranteed – Norway has expressed misgivings), there is no reason why Britain could not join the EEA through EFTA to obtain preferential single market access. |
| Doing so, however, would entail accepting EU immigration, which Theresa May has said it is the government’s top priority to curb, and abiding by a large number of EU rules and regulations, which would seem to be at odds with the government’s other key objective of regaining full judicial control for UK courts and judges. | Doing so, however, would entail accepting EU immigration, which Theresa May has said it is the government’s top priority to curb, and abiding by a large number of EU rules and regulations, which would seem to be at odds with the government’s other key objective of regaining full judicial control for UK courts and judges. |
| Politically, it may be hard to convince pro-Brexit ministers, MPs and voters that continuing to make payments to the EU (albeit not into the main budget), accepting free movement of people and becoming a law taker rather than a law maker is compatible with the referendum vote. | Politically, it may be hard to convince pro-Brexit ministers, MPs and voters that continuing to make payments to the EU (albeit not into the main budget), accepting free movement of people and becoming a law taker rather than a law maker is compatible with the referendum vote. |