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Begin New Search Topic Brexit Content Type Working Paper Publication Year within 10 Years

1. Post-Brexit EU–UK cooperation on migration and asylum: How to live apart, together

Author:
Alberto-Horst Neidhardt
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The UK’s withdrawal from the EU has created a policy, legal and operational vacuum in migration and asylum matters which undermines the interests of both sides. There is no more binding framework which defines responsibility for asylum seekers and facilitates transfers between the EU and the UK. Brexit also made it harder to devise and implement effective anti-smuggling strategies with European partners. Despite these gaps, a post-Brexit cooperation agreement is not on the horizon, with structural reforms pursued by each side reflecting conflicting priorities and a growing political disconnect. Following the 2020 proposals of the New Pact on Migration and Asylum, EU member states are still negotiating a mandatory responsibility-sharing mechanism. Meanwhile, in April 2022, the UK overhauled its asylum and immigration law, undercutting safeguards for asylum seekers reaching the country irregularly. The same month, the UK government signed a deal with Rwanda to deport all asylum seekers arriving via the Channel – a move even the European Commission has criticised. Recent post-Brexit tensions over other policy areas, most prominently the Northern Ireland Protocol, have reduced mutual trust to a historic minimum. This makes an ambitious and comprehensive agreement over asylum and migration matters an unlikely prospect for the time being. Yet, as neighbours, the EU and the UK will continue to depend on each other to pursue their respective policy objectives in migration and asylum. So, despite living separately and facing numerous unresolved tensions, the EU and the UK can and should pursue a post-Brexit cooperation framework in these matters. Otherwise, they will both be worse off. As a first step, the two sides should focus on rebuilding trust. This can be achieved by pursuing less contentious goals within immediate reach, such as enhanced anti-smuggling efforts, while also diffusing political tensions across the board. Once an atmosphere of sincere cooperation is restored, as a second step, the EU and the UK should define a broader and more ambitious partnership. Safe and legal channels from the EU to the UK should be re-established. At the same time, equitable solutions for facilitating the return of third-country nationals from the UK to the EU, in full respect of procedural safeguards, should also be found. Although reciprocity would have to be at the heart of this new arrangement, the EU and the UK should go beyond a transactional approach, particularly by strengthening protection pathways and burden-sharing solutions, including with third countries, in line with their international commitments. The European Commission should take the lead in the negotiation of a post-Brexit EU–UK cooperation framework. This would allow the EU to speak with one voice and pursue clear and coherent objectives across the different policy areas concerned. The newly established EU–UK Parliamentary Partnership Assembly should also be involved in the negotiations, helping to democratise the process and achieve a more balanced relationship in the interests of both sides.
Topic:
International Cooperation, Migration, European Union, Brexit, and Asylum
Political Geography:
United Kingdom and Europe

2. Post-Brexit imports, supply chains, and the effect on consumer prices

Author:
Jan David Bakker, Nikhil Datta, Josh de Lyon, Luisa Opitz, and Dilan Yang
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
UK in a Changing Europe, King's College London
Abstract:
This report documents the decrease in imports and shows how the patterns of imports vary across sectors following the UK’s departure from the Single Market and Customs Unit at the end of 2020. The authors, Jan David Bakker, Nikhil Datta, Josh De Lyon, Luisa Opitz, and Dilan Yang, focus on comparisons between imports from the EU and imports from non-EU countries. Some products, such as fats, oils, and waxes, experienced a sizeable decrease in trade volumes with EU countries compared to those of non-EU countries in January 2021. Other products, such as minerals, experienced minimal deviation in imports from the EU versus non-EU. We also document that the timing of import changes varies across products: in some cases, the deviation occurs pre-TCA, and there is some evidence of stockpiling; in other cases, the changes only occur post-TCA, and can be either short term or persistent. The fall in imports from the EU will affect the UK economy through its impact on supply chains. Two-thirds of international trade is in products used as inputs to production. We show that imports from the EU fell for products that are used as inputs to production in many industries in the UK. For some sectors such as agriculture, fishing, and car manufacturing, there is evidence that imported inputs began to be sourced from non-EU countries pre-TCA. For others, including vegetable oil, animal fats, prepared animal feeds, and pharmaceuticals, the adjustments occurred post-TCA. Evidence suggests that increased access to intermediate inputs can boost productivity, so a reversal is likely to cause a fall in productivity. Imports also provide cheaper goods to consumers, as well as a wider variety of choice. Focussing on food products, we show that the drop in imports after Brexit caused an increase in prices. Products that were more heavily reliant on imports from the EU increased in price following the election of Boris Johnson in 2019, pre-TCA and then increased further post-TCA. This report therefore shows that changes in imports of goods from the EU have affected UK firms’ supply chains. Part of this change is driven by the adjustment costs incurred as part of the new trading relationship and is likely to be short term, but another part is likely to reflect a long-term increase in the cost of inputs from the EU, which make up a sizable contribution of total imports. This could have a knock-on effect for consumers who will face higher prices, and for workers whose jobs will be affected by adjustments in the supply chain.
Topic:
European Union, Brexit, Trade, Imports, and Supply Chains
Political Geography:
United Kingdom and Europe

3. Mapping banking centres globally since 1970

Author:
Emmanuel Mourlon-Druol
Publication Date:
07-2022
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Brexit and the rise of China as a leading international economic power have revived discussions about the geography of banking centres. This paper analyses the geographical evolution of banking centres since the 1970s, based on a database constructed from a ranking of the top banks in the world created by The Banker magazine, a UK-based monthly publication specialised in international financial affairs. We describe both how the database was created and the ways in which it can be used to inform policy on money and capital markets. We address why the data can be used to proxy the size of International Financial Centres (IFCs) and the methodological limitations it may present. We find that banking consolidations and the evolution of the legal framework are more central to the changing geography of banking centres than economic and financial crises. We also highlight that, despite major shifts in global economic power, leading banking centres are hard to replace.
Topic:
Economy, Brexit, History, Fiscal Policy, and Banking
Political Geography:
Global Focus

4. Dealing with the Neighbours: The case for an affiliate membership of the European Union and a new Security Council

Author:
Andrew Duff
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Brexit is proving to be even more troublesome than expected, giving rise to a gradual softening of British public opinion towards the EU. Any future UK government is likely to want to renegotiate parts of the separation deal that Boris Johnson struck with the EU. Reconciliation between Britain and Europe will take time and need careful calibration, however. The EU should prepare for this constructively and use the opportunity of a British renegotiation to review all its other association agreements - none of which are without defect. The question of governance lies at the heart of the problems which impair the EU’s relations with its neighbours. The EEA and Swiss arrangements are in any case due for overhaul and upgrading. The EU’s traditional enlargement policy to the east and south has foundered, and it would be better if this were admitted openly. Not only are candidate countries unable to meet the demands of membership, but the EU itself is too weak to take on the burden of new members. Instead, a new category of affiliate membership should be written into the EU treaties. Affiliation should allow the EU to develop close economic and cultural partnerships with its neighbours in a democratic fashion. Affiliate states would enjoy greater access to the EU institutions than is permitted under any of the current association agreements. Affiliate membership would also be available as an option for any current EU member state which, like the UK, chose not to adhere to the goal of an ever closer union. Such differentiated integration of the wider Europe will require the EU to build stronger federal government at the centre. The new structure should also be underpinned by the establishment of a European Security Council combining EU member and affiliate states with NATO — including Canada and the US — in regular strategic and operational decisions to protect Western security. The French presidency in the first half of 2022 should take the necessary first steps. The Conference on the Future of Europe might consider these proposals.
Topic:
Security, Governance, European Union, and Brexit
Political Geography:
United Kingdom and Europe

5. Europe after the Brits

Author:
Andrew Duff
Publication Date:
03-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Andrew Duff argues that the loss of the United Kingdom should prompt serious reflection about the constitutional direction of the European Union. The secession of a member state changes the context of European integration. Brexit leaves the EU weaker, smaller and poorer — but it can and should also spur reform. The EU should aim to have major changes in place by 2029, including treaty revision. The reforms should include: (i) a renegotiation of the Brexit deal leading to a new class of affiliate membership; (ii) completion of the constitutional framework for a fiscal union; (iii) a European Parliament fully legitimated by election from transnational lists; and (iv) a ‘European Security Council’ of defence ministers to span the divide between the EU and NATO. The Conference on the Future of Europe may prove to be a useful democratic experiment. But it is not designed to address the important constitutional challenges that the Union faces. Duff therefore proposes creating an expert reflection group to stimulate the full implementation of the Treaty of Lisbon as well as prepare the way for the next Convention which must be called to amend the EU treaties. More immediately, the reflection group should make proposals to settle the controversial matter of how to elect the new President of the European Commission in 2024.
Topic:
Politics, Reform, European Union, Brexit, and Institutions
Political Geography:
United Kingdom and Europe

6. After Brexit: Could bilateral agreements facilitate the free movement of persons?

Author:
Diego Acosta
Publication Date:
07-2021
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Some of the millions of EU nationals in the UK and British nationals in the EU are already suffering from Brexit’s drastic curtailment of the right to free movement. How can migration now be governed and facilitated between the two parties? Although an EU-wide agreement with the UK that ensures free movement remains the ideal solution, it is currently unrealistic. This calls for an evaluation of possible alternatives. Bilateral agreements should be explored and examined as a possible alternative to an EU-wide agreement with the UK to facilitate and govern cross-border mobility. Various bilateral free movement agreements across Europe show that their use is not only legal but also habitual. They offer flexibility when it comes to the rights of entry, residency and work, as well as other important rights. And they could also be used as a foundation upon which to build an agreement between the EU as a whole and the UK, if not to facilitate the rebuilding of mutual trust. Migration law expert Diego Acosta makes a further case for Spain being the first possible candidate for a post-Brexit bilateral free movement agreement concluded between an EU member state and the UK. Spain is the most important EU destination for British emigrants, and British migrants residing in Spain constitute the latter’s third-largest non-national population. In turn, the UK is the most important migrant destination for Spanish nationals worldwide, who represent the fifth-largest migrant group from the EU. He offers concrete suggestions as to what a bilateral treaty between Spain and the UK could include. In addition, governments of EU member states that have important reciprocal migration flows with the UK, as well as the UK government, should consider the following recommendations when exploring the possibility of adopting bilateral agreements on migration: The negotiating parties should place the rights and interests of both short-term and long-term British and European nationals residing in each other’s territory at the centre stage. In negotiating a possible treaty, both the respective EU member state (e.g. Spain) and the UK should take the pre-Brexit status quo as the departing point. The status of mobile nationals could be improved beyond that enjoyed by EU citizens pre-Brexit. For example, political rights could be extended beyond the municipal level. Certain categories of individuals (e.g. retirees, young workers) could benefit from special provisions which also depart from the pre-Brexit situation.
Topic:
Migration, Treaties and Agreements, European Union, Brexit, Diversity, and Mobility
Political Geography:
United Kingdom and Europe

7. Gauging the Gravity of the Situation: The Use and Abuse of Expertise in Estimating the Economic Costs of Brexit

Author:
Christoph Semken and Colin Hay
Publication Date:
12-2021
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
HM Treasury’s estimation of the economic consequences of Brexit – using standard macroeconomic models – during the EU referendum campaign represents a remarkable intervention in a highly politicized public debate. It raises a series of questions about the use of economic expertise. Through a detailed theoretical and empirical critique of the Treasury’s methodology – and a reassessment of the likely effects of Brexit in light of this – we cast doubt on the utility of their approach, highlighting methodological issues, unrealistic assumptions, and misrepresentations of established facts. In the process we seek to identify some of the wider implications for the use and potential abuse of economic expertise in highly charged political contexts, such as the EU referendum debate.
Topic:
European Union, Economy, Brexit, and Methodology
Political Geography:
Britain and Europe

8. The implications of a no-deal Brexit for the EU

Author:
Jannike Wachowiak
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
As the end of the transition period nears, the EU must prepare for a fundamentally different and more conflictual relationship with the UK. Whatever the outcome of the Brexit negotiations, there will be profound economic, political and geopolitical implications for the EU. While the EU as a whole might be better placed than the UK to absorb the economic shock of a no-deal, the fallout within the EU will be uneven, resulting in winners and losers. The asymmetrical impact and differential capacity and willingness of national governments to mitigate the shock could exacerbate regional disparities and unbalance the EU’s internal level playing field. As such, it might become more difficult to maintain the same level of EU unity post-no-deal.
Topic:
Diplomacy, Treaties and Agreements, European Union, and Brexit
Political Geography:
Britain and Europe

9. The Brexit referendum and the rise in hate crime; conforming to the new norm

Author:
Facundo Albornoz, Jake Bradley, and Silvia Sonderegger
Publication Date:
06-2020
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
We show that the sharp increase in hate crime following the Brexit referendum was more pronounced in more pro-remain areas. This is consistent with a model where behavior is dictated by the desire to conform to imperfectly observed social norms in addition to following individual preferences, and where the referendum revealed that society’s real preferences over immigration were less positive than previously thought. For identification, we exploit the feature that the referendum revealed new information overnight in a context where other determinants of attitudes remained constant. The data can be replicated with a sensible parameterization of the model.
Topic:
Immigration, Public Opinion, Brexit, and Discrimination
Political Geography:
Britain and United Kingdom

10. Resilience or Relocation? Expectations and Reality in the City of London since the Brexit Referendum.

Author:
Manolis Kalaitzake
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The fate of British finance following the Brexit referendum revolves around the “resilience or relocation” debate: will the City of London continue to thrive as the world’s leading financial centre or will the bulk of its activity move to rival hubs after departure from EU trading arrangements? Despite extensive commentary, there remains no systematic analysis of this question since the Leave vote. This paper addresses that lacuna by evaluating the empirical evidence concerning jobs, investments, and share of key trading markets (between June 2016 and May 2020). Contrary to widely held expectations, the evidence suggests that the City has been remarkably resilient. Brexit has had no significant impact on jobs and London has consolidated its position as the chief location for financial FDI, FinTech funding, and attracting new firms. Most unexpectedly, the City has increased its dominance in major infrastructure markets such as (euro-denominated) clearing, derivatives, and foreign exchange – although it has lost out in the handling of European repurchase agreements. Based upon this evidence, the paper argues that the UK’s negotiating position is stronger than typically recognised, and outlines the competitive ramifications for both the UK and EU financial sector.
Topic:
Regional Cooperation, European Union, Brexit, Urban, and Local
Political Geography:
United Kingdom and Europe