Posts Tagged '#EU'

Brexit: 10 myths about the ‘Norway model’ examined

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On 8 May the UK’s House of Lords passed an amendment to require the House of Commons to vote on remaining in the European Economic Area (EEA), the possibility of Britain adopting the so-called ‘Norway model’ is back on the agenda of British politics.  

Here the authors of Squaring the Circle on Brexit: Could the Norway Model Work?, John Erik Fossum and Hans Petter Graver, give some background to Norway’s relationship with the European Union and reveal the truth behind some common myths about the Norway model.

“While Norway has rejected membership of the European Union twice in referendums in 1972 and 1994, it has consistently sought as close a relationship with the European Union as is possible for a non-member.  The core element of that relationship is the European Economic Area (EEA) agreement, which came into effect in January 1994, almost a year before the second referendum.  This seamlessly ties Norway to the EU’s internal market without it being part of the supranational political union.

However, Norway’s experience shows how non-members of the EU must make difficult trade-offs between relative autonomy in decision- and rule-making and access to the EU’s internal market and other EU policies.  Norway is frequently portrayed as a ‘rule-taker’ and there is no doubt that Norway’s inability to affect EU rule and decision making is – democratically speaking – very problematic.

A closer look at Norway’s experience reveals that, in spite of this, members of the EEA can still shape their socio-economic model and mode of functioning.  In other words, how a country handles its relationship with the European Union matters.  Norway has retained a well-functioning welfare state and high levels of trust in public institutions, helping to offset potential negative influences. This trust is crucial. Norway’s experience underlines that the issue is not simply one mode of EU affiliation but the important left-right issue of choice of socio-economic model, which has significant bearings on the question of social justice.

“Norway has retained a well-functioning welfare state and high levels of trust in public institutions, helping to offset potential negative influences.”

Given these pros and cons, and the reemergence of the EEA as an essential aspect of the Brexit agenda, now is the time to unravel some of the myths around Norway’s relationship with the EU:

 

1. The ‘Norway model’ is an arrangement that just involves Norway

A core aspect of the Norway Model is, in fact, the European Free Trade Association (EFTA)-based EEA agreement which was signed by Iceland, Lichtenstein and Norway and where all decisions are based on unanimity.

 

2. The Norway model is the EEA

The Norway Model is made up of 120 different arrangements and covers a far greater realm of issue-areas than just those regulated under the EEA agreement. Norway is an affiliated member of Schengen and asylum and police cooperation (Dublin I, II and III. Norway is therefore within the EU’s external border with responsibility for border controls. It has also signed agreements on foreign and security policy and participates in the EU’s battle groups).

 

3. The Norway model is more constraining than the Swiss model

Unlike Norway, the Swiss have opted to unilaterally adapt their legislation to be EU-compatible. The EU is unhappy with the Swiss arrangements. They will likely not be extended elsewhere.

 

4. The EU’s off-the-shelf arrangements for non-members are straitjackets that do not allow for the flexibility of a bespoke deal

The sheer range of affiliations under the Norway Model testifies to some flexibility and ingenuity, but there are limits, especially within the EEA agreement which is about common rules and equal conditions for competition. There is political will on both the EU side and the Norwegian side to maintain close relations, and that allows for a certain measure of flexibility.

 

5. The Norway Model does not allow for an independent trade policy

The EFTA states retained their freedom to decide their own trade policies towards third countries because they are not part of the EU’s customs union. Norway had negotiated 27 free trade agreements with the EFTA countries in 2016, and has undertaken negotiations with ten countries (including China) and regional trade blocks (MERCOSUR).

 

6. No deal is better than a bad deal

Theresa May has said on Brexit that no deal is better than a bad deal. The Norway Model, with all its challenges, has shown to Norwegians that having common rules and equal conditions of competition, and the equivalent means of enforcement, offers the certainty that is necessary for an open economy to function in today’s tightly interwoven Europe.

 

7. The Norway Model is deeply contested in Norway and is unlikely to receive majority support elsewhere

In fact, there always been a clear majority in Norway in support for the model it has adopted: there is little support for EU membership, and very little support for abolishing the EEA. There is a very strong sense across most economic sectors that assured EU access is vital for prosperity. 65% of Norway’s exports (excluding oil, gas and ships) go to the EU. Norway needed a Schengen association agreement (to be within EU’s borders) in order to preserve the Nordic passport union which ensures free movement in the Nordic region.

 

8. The Norway Model is about rule-taking 

There is no denying the arrangement is democratically problematic, but there is scope for local adaptation and flexibility. The Norway model reflects the complex nature of the EU, which combines a supranational core (the internal market) and a set of intergovernmental arrangements for handling matters of border controls, and security. There is more scope for bargaining in the intergovernmental realm, which the UK has experienced through its numerous opt-outs and opt-ins. In the supranational realm the EU is also constrained by the Court of Justice, which has the final say on what arrangements are compatible with the EU aquis (the body of common rights and obligations that are binding on all EU member states) The implication is that the EU is more likely to accept bespoke arrangements in the intergovernmental than in the supranational institutional realm.

 

9. The key question about the Norway Model is the type of affiliation that it represents

That is only part of the picture. Equally important is how Norway handles this affiliation domestically. What Norway’s experience shows is that it is important to consider the state’s ability to handle its EU relationship. The Norwegian state is a well-functioning state with a high level of competence and a broad range of comprehensive welfare arrangements that enable it to compensate actors for the negative effects of Europeanisation. Norway also has a tradition of consensus-based politics that contribute to keeping EEA issues outside the realm of party politics.

 

10. Norway will be included in the European Union’s post-Brexit arrangements

Norwegians will not automatically get the same arrangements with Britain that members of the European Union will. Norway is not part of the Brexit negotiations and for many issues Norway will have to sort out its relations with the UK on its own, for example, on the rights of Norwegian citizens in the UK and UK citizens in Norway. In this case, the UK government has assured Norway that citizens will receive the same treatment. Nevertheless, Norway is a decision-taker on the sidelines during the negotiations on the UK’s future relationship with the EU and is concerned with when its arrangements with the UK will be settled.

 

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Could the Norway model work for Britain? Find out more in Squaring the circle on Brexit – Could the Norway model work? by John Erik Fossum and Hans Petter Graver, a comprehensive first-hand account of Norway’s relationship with the EU.

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Election focus: The General Election and Brexit – diversion, divisions and tactics

In the next piece in our election focus series, Janice Morphet looks at the impact of the general Election’s delay to Brexit negotiations, questions that aren’t being answered, how each party are approaching Brexit in their campaigns and the significance of tactical voting.

Janice Morphet

As the General Election campaign moves on, it appears to be characterised more by pauses than progression.

We now have the EU ready to start negotiating in a serious manner while foghorn diplomacy is all they meet across the channel. Since the Prime Minister took office, there has been a wasted period when the electorate has been lulled into assuming that these negotiations will be easy while the EU has been consistent about its position and the issues.

The EU finds it hard to deal with shocks but thrives on process. Once it could appoint its negotiators and set out its red lines it became stronger and more confident and this would have occurred whoever it faced in number 10.

Continue reading ‘Election focus: The General Election and Brexit – diversion, divisions and tactics’

Article 50: where we are now

Janice Morphet, author of Beyond Brexit, looks at what the future holds for the U.K. after the triggering of Article 50 and the formal beginning of the Brexit process. 

Janice Morphet

As the UK government faces its two-year roller coaster ride of negotiation, following the Prime Minister’s triggering of Article 50, many pressure points have already been revealed while some remain as haunting unknowns.

The first challenge that has emerged is how ill prepared the UK government finds itself. While the letter triggering Article 50 and the subsequent White Paper on the Great Reform Bill are full of words addressing internal political party agendas, any pretence of maintaining a united view across the UK has been abandoned.

No legal basis for devolution

Although stating in the White Paper that everything would remain the same until dismantled and changed through Parliamentary procedure, this is completely undermined in the chapter on devolution which confirmed the re-centralisation of returned powers on agriculture, environment and some transport issues.

Subsidiarity is based on principles laid down in the Treaty on European Union and there are no guarantees that it will survive Brexit as a principle of the UK state. Following Brexit all devolution within the UK, including to cities in England, will transfer to the whim of each five-year Westminster Parliament and cannot be agreed in perpetuity.

Continue reading ‘Article 50: where we are now’

What does the post-Brexit future look like?

Janice Morphet, author of Beyond Brexit, out today, warns that without due consideration of all the challenges that lie ahead, Brexit poses a real threat to UK economic and social stability.

In this article Professor Morphet looks ahead to what the coming months could bring, and suggests priorities going forward.

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Janice Morphet

“As Brexit is a negotiation, it is a dynamic process.

The Prime Minister took this essential position last July and spent her first six months in an enigmatic ‘Brexit means Brexit’ mode.

This allowed some space for the machinery of government to be realigned and the new departments to lead on Brexit – International Trade and Exiting the EU – to be established. But what does the future hold?

The loss of economic security

In terms of economic security, the effects of Brexit on the UK economy have started to pile up – the loss in the value of the pound in the first days after the referendum equated to the value of UK contributions to the EU for fifteen years.

“The loss in the value of the pound in the first days after the referendum equated to the value of UK contributions to the EU for fifteen years.”

Deals have been offered to Nissan in Sunderland by the government which have appeared to transgress state aid rules, although more recently the company has suggested changing its mind about remaining in the UK. Asked about investment in the UK, a Chinese source commented that, before the referendum, the UK was a door to the EU and now it is only a door.

Continue reading ‘What does the post-Brexit future look like?’


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