High energy prices, excessive welfare and an absurd regulatory burden have combined to stop European economies growing for most of the 21st century. There are some exceptions, but they are either historically weak economies that have been catching up, or a parasite economy such as the Republic of Ireland that has cleverly arranged its tax laws to live off the other member states.
Comparing growth between the United States, Germany, France and the United Kingdom since 2000 is a salutary experience. America has averaged 2.1% per annum, the UK is in second place with 1.5%, France next at 1.2%, with Germany the laggard, the winner of the wooden spoon, with a mere 1.0%.
This matters, because 0.6%, the difference between the UK and the USA, means that the cumulative growth of the US is 68% against 45% of the UK, so each year of lower growth has a compounded effect that has meant that the main Europe economies are much weaker than the US.
Yet the Remainers, who seem to be ever more powerful in the Labour Party, still want to take the UK back into the orbit of the EU. This makes absolutely no sense when the EU is not just a failing economic model, but a failed one. It has not now worked properly since the end of the post-war reconstruction boom.
However, aligning more with the EU comes with even more serious risks. Any attempt to join the Customs Union would invalidate the free trade agreements we have signed with other trading partners, including India, which will be one of the dynamos of 21st century growth; Australia, which can replace expensive European food imports to the considerable benefit of living standards; and the CPTPP, which could be one of the most important trading partnerships in history.
Since we left the EU, 2,400 tariffs have been removed on goods we do not produce, helping consumers and also reducing the bureaucracy of trade. Putting them back on again would cause supply chain interruptions just as the final covid related ones are going.
