1. Home
  2. Studies
  3. What next after Brexit? Considerations regarding the future relationship between the EU and the UK
Jürgen Matthes / Berthold Busch IW-Policy Paper No. 16 12. December 2016 What next after Brexit? Considerations regarding the future relationship between the EU and the UK

In order to be able to assess the future institutional relationship between the UK and the EU, this study organises the relevant facts systematically.

Download PDF
What next after Brexit? Considerations regarding the future relationship between the EU and the UK
Jürgen Matthes / Berthold Busch IW-Policy Paper No. 16 12. December 2016

What next after Brexit? Considerations regarding the future relationship between the EU and the UK

IW policy paper

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

German Economic Institute (IW) German Economic Institute (IW)

In order to be able to assess the future institutional relationship between the UK and the EU, this study organises the relevant facts systematically.

This is done by using a framework in which two aspects are compared with each other: On the one hand, the extent of the Single Market access for the EU’s current partners (incl. Norway, Switzerland and Canada), and on the other, the concessions agreed by these partners with the EU with regard to free movement of people, relinquishment of regulatory sovereignty (legal harmonisation with the EU) and payments to the EU. Here a clear reciprocity between give and take can be seen, which it is assumed will also be valid for the pending negotiations, particularly as the EU needs to prevent bandwagon effects in terms of other EU countries following the UK example to exit the EU. On this basis we discuss which concessions the UK is likely to give and what kind of access to the Single Market the EU might grant in exchange, if it is to be guided by the existing integration models, and in addition takes into account the British trade deficit with the EU and the substantial political and military role played by the British.

Although the UK would like to retain as broad access to the Single Market as possible, the political restrictions might mean that the UK can only offer medium level concessions overall: small regarding free movement of people, small to medium regarding payments to the EU, and medium to high regarding legal harmonisation with the EU. In this respect, there are clear parallels with the Swiss integration model, since Switzerland also gives the EU medium level concessions on average, and in return receives medium level access to the Single Market. However, in the case of the UK there would be a single overall agreement (rather than many individual agreements as in the case of Switzerland) and concessions would be distributed differently amongst the various categories.

Download PDF
What next after Brexit? Considerations regarding the future relationship between the EU and the UK
Jürgen Matthes / Berthold Busch IW-Policy Paper No. 16 12. December 2016

Jürgen Matthes / Berthold Busch: What next after Brexit? Considerations regarding the future relationship between the EU and the UK

IW policy paper

Download PDF

German Economic Institute (IW) German Economic Institute (IW)

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
Challenging times for the US and EU - Where are the economic and monetary policies headed?
Sandra Parthie Event 21. November 2022

panel discussion: Challenging times for the US and EU - Where are the economic and monetary policies headed?

The Russian war of aggression on Ukraine triggered massive price increases. But even before that, there were high inflation risks due to the Corona pandemic and creeping deglobalization. How should governments and central banks respond now?

IW

Read the article
Sandra Parthie Event 7. November 2022

Reinventing EU economic governance: What will become of the Stability and Growth Pact?

In the framework of the Spring 2022 European Semester package, the Commission announced the far-reaching decision to continue applying the general escape clause of the EU fiscal rules. This means that the deficit and debt rules can be ignored by the member ...

IW

Content element with id 8880 Content element with id 9713