Sunday, January 20, 2013

Danny Alexander interviewed by Andrew Neil on Sunday Politics

I watched Shadow Foreign Secretary Danny Alexander interviewed by Andrew Neil on Sunday Politics earlier today.

It is puzzling why the current discussions about the possibility of a referendum on membership of the European Union make no mention of the European Elections in 2014.

If, as expected, UKIP does well in the Euro elections the pressure for an In-Out referendum may well become irresistible.  Labour may well find itself boxed in by its current pro-EU position.  Therefore the Prime Minister needs to keep open the prospect of an In-Out referendum as a way of outflanking Labour, nixing UKIP and achieving an outright majority in 2015.

The alarmist talk currently circulating about "uncertainty driving away investment" needs to be discounted.

The United Kingdom is still the fifth largest economy in the world, with a large and sophisticated consumer market.  If the United Kingdom were to leave the EU and the EU were to be so foolish as to put up trade barriers, all that will happen is that the part of the British market currently being satisfied by European imports will suddenly be up for grabs.  In that scenario non-EU companies will rush to invest here.

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