The Future of Britain & The European Union

The Future of Britain & The European Union

Created by: Shannon Campbell

February 8, 2013

Article Retrived from: http://www.wwd.com/business-news/government-trade/retailers-mum-on-uk-plan-for-europe-6702853?module=hp-topstories

Samantha Conti writes for WWD yesterday about the recent meeting between U.S. Vice President Joe Biden and British Prime Minister David Cameron. The two were on a quick and brief tour of Europe, where they discussed an array of topics. However, they did not talk about, how Conti puts it, “the elephant in the room”, which translates to “Britain’s future in the European Union”. Biden also met with leaders from Germany and France as well to discuss a variety of other global issues, which included the possibility of free-trade agreement between the United States and the many countries of Europe. The  British newspapers stated that nothing was mentioned about a referendum that could have Britain quitting the European Union.

“Late last month Cameron bowed to pressures from a faction inside his own Conservative party, from an anti-EU political party, and from a general feeling among much of the population that everyday life in the U.K. is being eroded by the debts, the red tape and the sometimes nonsensical rules that come with being a member of the EU.” 

Cameron stated that a new negotiation would be settled with Britain and the EU if he was reelected in 2015. This proposition would include the British citizens to decide whether they want to be a part of, or disconnect themselves, from the European Union.

As for the fashion world, many British-based fashion retailers, such as Marks & Spencer, Burberry, and Arcadia, are not speaking on the matter.

Nick Hood, head of external affairs at Company Watch, the London-based firm that analyzes the financial health of businesses, states the following:

 “There are an awful lot of British retailers that are talking up plans for international expansion — Debenhams, Marks & Spencer, Topshop and Reiss, to name a few — and Cameron’s speech poses serious questions because of the uncertainty it creates. How will the negotiations with the EU turn out? What will happen to the exchange rate of the pound? If Britain leaves the EU, how powerful will it be to negotiate bilateral agreements on its own? Will Britain go the route of Switzerland and Norway? Business leaders are working hard to be as neutral as possible on the subject,” Hood added.

The British Retail Consortium, which is Britain’s largest retail lobby, quoted that they are aware of the many uncertainties that this possible legislation creates. But, what is most important, is that the retail stores and businesses continue to make decisions to promote investment and jobs. John Miln, who is the CEO of the U.K. Fashion and Textile Association, stated that he and the UKFTA, “Are clearly concerned that the U.K. should remain part of Europe, and that the original principle of the common European market is maintained. The U.K. is not an island and is entirely reliant on its close neighbors for its pulling share in the market”.

Last month, David Cameron and Angela Merkel, who is the German Chancellor, met to negotiate the possibility of a free trade agreement between the United States and the European Union during the World Economic Forum. Statistically, this could add 50 million pounds to the European Union economy.

Although Conti remained very factual and consistent in her WWD article about this current debacle, I still remain confused about the current situation between Britain and the European Union. I can see both sides, but personally, I support Britain remaining a part of the EU; especially with the possibility of the free-trade agreement with the United States. What are your thoughts? Can anyone add any additional facts or readings that they have come across regarding this issue?