Would Britain be better off economically outside the European Union? The answer is most likely no, which is why Britons need to weigh the evidence carefully before going to the polls next June to vote in the promised referendum on whether to leave the bloc or not.

Obviously, investors are reasonably worried about Britain's economic prospects if it leaves the EU, which is why sterling has depreciated against the dollar in recent weeks.  Such an exit could prompt banks and large firms to move parts of their operations from London to other European cities so they could continue doing business in EU countries without any disruptions.

Opponents to the EU criticized the Union for issuing unnecessary and excessive regulations, and most of all for taking too much power from member states. This has hurt Britain, they argue. And yet, it is far from clear that by leaving EU, Britons would be better off because of faster growth and better living standards. In fact, it could have the opposite effect!

Would free movement continue if Britain leaves? Maintaining access to the European single market would require Britain to accept free movement too. Staying in offers Britain certainty. Remaining in the EU means that Britain's borders and labour market will remain open to more than 500 million people with EU passports. On the other hand, separating Britain from the Union is highly unlikely to yield the economic boom supporters have promise, and it would leave Britain more isolated and probably poorer.

 

Jos Edmond Zarb

Birkirkara