Britain gears up for EU membership referendum

British Prime Minister David Cameron makes a statement to the media outside 10 Downing Street in London on February 20 , 2016 regarding the EU negotiations and to announce the date of the in-out EU referendum after chairing a meeting of the cabinet. PHOTO | AFP

What you need to know:

  • A “War Game” held in London last month attempted to simulate post-Brexit negotiations on Britain’s place in Europe.

  • As a first step, Britain and the EU must negotiate and conclude an agreement... setting out the arrangements for its withdrawal, as per the Lisbon Treaty. 

  • HSBC, Europe’s biggest bank, has warned that 1,000 jobs could shift from London to Paris.

LONDON, Saturday

A British exit (Brexit) from the European Union would leave the country in uncharted territory, no country having ever travelled that road, which spells freedom to eurosceptics but doom to the pro-Europe.

As Britain gears up for a membership referendum, European Commission President Jean-Claude Juncker insists there is no plan B, while Downing Street maintains it has made no contingencies.

After securing a deal on Britain’s ‘special status’ in the EU at a summit on Friday, PM David Cameron said he would campaign for his country to stay in and warned those clamouring for a divorce that a post-EU future might be far from rosy.

“We should be suspicious of those who claim that leaving Europe is some automatic fast track to some land of milk and honey,” Cameron said, adding that “Brexit would be a leap into the unknown”.

'WAR GAME'

A “War Game” held in London last month attempted to simulate post-Brexit negotiations on Britain’s place in Europe, but even there, discussions quickly turned toxic.

As a first step, Britain and the EU must negotiate and conclude an agreement... setting out the arrangements for its withdrawal, as per the Lisbon Treaty. 

If no agreement is reached after two years, Britain would automatically be ejected from the union, unless both parties agreed to an extension.

At the heart of discussions will be whether Britain remains in the European Economic Area, like other non-EU members Norway and Iceland, or whether it quits the single market.

London, Europe’s most important financial centre, is hostile to a Brexit and its big hitters have already planned for various post-EU scenarios.

HSBC, Europe’s biggest bank, has warned that 1,000 jobs could shift from London to Paris.

According to a study by the think-tank Open Europe, Britain’s GDP would be 2.2 points lower in 2030 if the country leaves the EU, in its worst-case scenario, with a loss of 0.8 per cent deemed most likely.

Despite Brexit’s many unknowns, the government would likely clamp down on immigrants, starting with those from eastern Europe, whom eurosceptics say are being lured by Britain’s welfare system.

Parliament would be able to strike down EU laws written into British law.