Britain could rejoin the European Union without being forced to adopt the euro, but would have to accept freedom of movement and Brussels’ single market rules, the bloc’s former chief Brexit negotiator has warned. Michel Barnier said it was possible for the UK to negotiate an exemption from the requirement to adopt the single currency if it sought to reverse Brexit.
However, he made clear there could be no such flexibility over the EU’s other fundamental rules, meaning Britain would have to accept the free movement of people, goods, services and capital. Speaking to Sky News presenter Cathy Newman, Mr Barnier said: “It is perfectly possible to begin such a negotiation [on rejoining the EU] without any kind of obligation to take part in the euro.”
Although all new EU member states are legally required to commit to joining the euro area, Mr Barnier suggested Britain could negotiate a different arrangement. He said: “But what is, and what remains unnegotiable, is the condition to join the single market.
“There is no negotiation possible. No possible negotiation on any kind of cherry-picking or the single market ‘a la carte’.” He added: “The UK knows quite perfectly the condition to be part of and to rejoin the single market and the customs union.”
The comments represent a significant intervention in the debate over Britain’s future relationship with Brussels, reignited by Andy Burnham‘s calls for closer ties with the bloc. The Labour politician has advocated a closer economic relationship with the EU, while the Government has already embarked on a post-Brexit reset intended to reduce trade barriers and strengthen cooperation.
Michel Barnier was the EU’s Chief Brexit Negotiator (Image: Getty)
However, Mr Barnier’s intervention highlights the potential price of going further and seeking full EU membership again.
Freedom of movement was one of the most contentious issues during the Brexit referendum campaign in 2016, with supporters of leaving arguing that Britain should regain control over immigration and its borders.
Under the EU’s single market arrangements, however, the four freedoms are treated as inseparable.
Mr Barnier said: “As far as the freedom of movement is concerned, I can only repeat that the four freedoms are linked together and are not negotiable.”
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Rejoining the single market would therefore mean accepting rules allowing EU citizens to move to Britain to live and work, alongside the free movement of goods, services and capital.
That would represent a major political challenge for any British government seeking to reverse Brexit, particularly given that ending freedom of movement was a central promise made by Leave campaigners.
Mr Barnier also stressed that the decision to seek EU membership again would rest entirely with Britain.
He said it would be “the choice of the UK people” for the Government to request fresh negotiations to rejoin the bloc.
However, he added that he did not want to intervene in the political debate sparked by Mr Burnham over Britain’s future relationship with Europe.
Britain voted to leave the EU in the 2016 referendum by 52% to 48%, formally departing on January 31, 2020, before completing its transition period at the end of that year.
The UK subsequently left the single market and customs union, ending automatic free movement between Britain and EU member states.
BREXIT BOMBSHELL AS ‘EURO OPTIONAL FOR REJOINING EU’ – BUT THERE’S A MASSIVE CATCH THAT COULD CHANGE EVERYTHING!
Britain could potentially rejoin the European Union without being forced to adopt the euro, in a development that has reignited the increasingly heated debate over Brexit.
The possibility was raised by Michel Barnier, the European Union’s former chief Brexit negotiator, who suggested that Britain could negotiate an arrangement allowing it to retain the pound sterling if it decided to seek EU membership again.
For supporters of Brexit, the prospect of returning to Brussels has always raised concerns about Britain’s sovereignty, immigration controls and ability to make independent decisions.
But while the possibility of keeping the pound may sound like a significant concession, Barnier delivered a much more complicated message.
There would be a major condition attached.
Britain would have to accept the EU’s fundamental rules, including freedom of movement and membership of the single market.
That is the part of the proposal likely to generate the greatest political controversy.
Michel Barnier Reveals the Possibility of Keeping the Pound
Speaking to Sky News on November 5, Barnier explained that Britain could potentially begin negotiations to rejoin the European Union without an immediate obligation to adopt the single currency.
He said:
“It is perfectly possible to begin such a negotiation without any kind of obligation to take part in the euro.”
The comments represent an important intervention in the debate about Britain’s European future.
However, there is an important legal distinction.
Under the EU treaties, most new member states are expected to adopt the euro once they meet the necessary economic conditions. Denmark is currently the only member state with a formal treaty opt-out.
Barnier’s comments suggest that Britain might be able to negotiate special arrangements, but no formal exemption has been agreed.
For British households, businesses and financial institutions, retaining the pound would be a significant consideration in any future membership negotiations.
The Massive Catch: Freedom of Movement
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While Barnier suggested flexibility over the euro, he was considerably less flexible about the EU single market.
He insisted that Britain could not simply choose the benefits of membership while rejecting its fundamental obligations.
He explained that the four freedoms were inseparable:
- Freedom of movement for people.
- Free movement of goods.
- Freedom to provide services.
- Free movement of capital.
In other words, Britain could not expect to rejoin the single market while maintaining the same immigration arrangements established after Brexit.
This is particularly significant because controlling immigration was one of the central arguments made by Leave campaigners during the 2016 referendum.
Barnier made clear that there would be no single market arrangement designed specifically to allow Britain to select only the conditions it wanted.
For any British government considering EU membership again, this could become one of the biggest political obstacles.
Andy Burnham Faces Difficult Questions
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The intervention comes amid growing discussion about Prime Minister Andy Burnham’s ambitions for Britain’s relationship with Europe.
Burnham has argued that the country should have an honest discussion about the long-term consequences of Brexit.
He has also indicated that different options for closer European integration should be examined.
These could include a closer customs relationship, joining the single market or eventually seeking full EU membership.
However, he has insisted that the British public must have the final say.
His position has attracted criticism from Brexit supporters, who believe Labour risks gradually reversing the referendum result without clearly explaining the consequences.
The government has maintained that its immediate priorities remain focused on practical cooperation rather than an immediate return to EU membership.
Why the Euro Is Such an Important Issue
The pound sterling has been Britain’s national currency for centuries.
Retaining control over monetary policy allows the Bank of England to make decisions about interest rates and monetary conditions according to the needs of the UK economy.
Adopting the euro would involve joining the eurozone’s monetary framework.
That would mean monetary policy being determined by the European Central Bank rather than independently by the Bank of England.
For opponents of EU membership, this represents a significant question of economic sovereignty.
For supporters, however, retaining the pound while participating in the wider European market could potentially provide a compromise.
The crucial question is whether Brussels would actually agree to such an arrangement.
Barnier’s comments suggest the possibility of flexibility, but they do not constitute an official EU agreement.
Nigel Farage Will Have Plenty to Say
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The latest developments are likely to attract considerable attention from Nigel Farage and Reform UK.
Farage has consistently defended Britain’s departure from the European Union and opposed proposals to reverse Brexit.
His political argument centres on national sovereignty, immigration control and Britain’s ability to establish independent policies.
The prospect of returning to the single market while restoring freedom of movement would therefore be particularly controversial for Reform.
Farage has repeatedly argued that Britain should concentrate on making Brexit work rather than negotiating its way back into European institutions.
The latest comments from Barnier provide another opportunity for Reform to question Labour’s long-term European ambitions.
Would Britain Have to Pay Billions?
Financial contributions would also become an important part of any future membership negotiations.
As a member of the European Union, Britain previously made substantial contributions to the EU budget.
After Brexit, those regular membership payments ended, although the UK continued to make certain payments under the Withdrawal Agreement and other arrangements.
If Britain applied to rejoin, it would be expected to contribute to the European budget under the terms agreed for its membership.
The exact amount would depend on the negotiated arrangements, the size of the UK economy and the applicable budget rules.
Barnier has made clear that Britain could not expect to enjoy all the benefits of membership without accepting the associated responsibilities.
This is another issue that any government proposing to rejoin would need to explain to taxpayers.
What Would Happen to Britain’s Immigration Rules?
Freedom of movement could prove even more controversial than the question of the euro.
EU single market membership involves allowing citizens of participating countries to move between member states to live and work, subject to the relevant rules.
For British businesses, this could make recruitment from European countries easier.
For people wanting to live, work or study abroad, it could reopen opportunities that changed after Brexit.
However, critics would argue that it would reduce Britain’s ability to control migration from EU countries independently.
This was one of the defining issues of the 2016 referendum campaign.
Any future proposal would therefore need to address the concerns of voters who supported leaving specifically to regain control over immigration.
Britain Has Not Applied to Rejoin
Despite the dramatic headlines, it is important to understand that Britain has not formally applied to rejoin the European Union.
The government is currently discussing options for its longer-term relationship with Brussels.
Any application would involve negotiations under Article 49 of the Treaty on European Union.
All existing member states would need to approve the accession process and ultimately agree to the terms of membership.
There is also no guarantee that Britain would receive the same arrangements it enjoyed before Brexit.
The final agreement would depend on negotiations and the willingness of European governments to accept Britain’s proposed conditions.
The Next Chapter in the Brexit Debate
Barnier’s intervention has added another dimension to Britain’s increasingly complicated relationship with Europe.
The possibility of retaining the pound could make a future return to the EU more politically attractive to some voters.
But the requirement to accept freedom of movement and the single market’s rules presents a much bigger challenge.
For Andy Burnham, the task will be explaining exactly what closer European integration would mean for British workers, businesses and families.
For Nigel Farage and other Brexit supporters, the latest developments reinforce their concerns about the direction of government policy.
The debate is unlikely to disappear any time soon.
THE BIG QUESTIONS:
- Should Britain be allowed to rejoin the EU while keeping the pound?
- Is freedom of movement an acceptable price for access to the single market?
- Would returning to Brussels improve Britain’s economy?
- Should another referendum be held before any decision to rejoin?
- Would you support EU membership if Britain could retain sterling?
The biggest question is no longer simply whether Britain could return to the European Union. It is whether the British public would accept the conditions that could come with it.