Dear Delegates, Sincerely, Khuat Minh Van Nhi (Head Director) Caitlin Chong (Assistant Director) Nicole Tan (Assistant Director)

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1 Dear Delegates, We are Van Nhi, Caitlin, and Nicole, the directors of the European Union Council, and would like to extend a warm welcome to all of you! We feel extremely privileged to have all of you join us at SCMUN As your directors, all of us hope that you would have a fruitful debate and get to learn more about a few pertinent issues we are discussing, and come up with realistic solutions. We hope that you will have a very memorable SCMUN with all your newly acquired knowledge as well as the new friends you have made! Others might say MUN is where delegates pretend to be the United Nations, but MUNers know it is where they can be the truest to themselves! MUN allows one to express him/herself through debates and discussions. Furthermore, MUN is an environment that welcomes new and original ideas, because those are the ideas that will have great impact and change the world for the better! For example, during the crisis, delegates are expected to react to the situation on the spot without any prior research, hence requires delegates to use their creativity. Thus, we challenge you to think outside of the box, while still staying relevant to the issues. The European Union comprises of 28 member states, including two influential countries in the United Nations (UN): France and the United Kingdom. This Union was created with the intention of promoting greater social, political, and economic harmony amongst the countries in Western Europe. The EU reasons that nations whose economies are interdependent are less likely to engage in conflict with one another. In the hopes of reaching those goals, the EU has unified the European markets under a single, uniform currency, the Euro, as well as implemented sets of legal standards which all prospective and member countries are held by. The EU is a very prestigious organisation and therefore, we hope that all delegates will uphold a certain level of professionalism in this debate. As the European Union is an advanced council, there is a mixture of experienced and less experienced delegates, thus, we hope all delegates will work together in order to resolve the issues. Should you have any queries, please contact scmun17eu@gmail.com. Thank you for participating in SCMUN and choosing European Union council; we will do our best to fulfill your experience at SCMUN All the best for preparation and we look forward to seeing you! Sincerely, Khuat Minh Van Nhi (Head Director) Caitlin Chong (Assistant Director) Nicole Tan (Assistant Director) 1

2 Primary Issue: The Issue of British Exit Glossary: Brexit: Referring to the departure of the United Kingdom from the European Union. A shortening of the phrase British Exit Referendum : A general vote by the electorate on a single political question which has been referred to them for a direct decision Migrant crisis: more than a million migrants and refugees crossed into Europe in The large influx of people caused division amongst the EU member countries on how best to solve the problem. European Union (EU): Union of 28 member countries including Germany, France, and the UK. Created with intention of promoting greater social, political, and economic harmony amongst countries in Western Europe. Single Market: the European Union Single Market, completed in 1992, allows the free movement of goods, services, money and people within the European Union. Recession: If the overall growth is negative for 2 consecutive quarterly periods - so for half a year in total - then a country is said to be in recession. Euroscepticism: It refers to the criticism of and strong opposition to the European Union 2

3 Introduction to the issue: British Exit, or Brexit, is a term used to refer to the United Kingdom s withdrawal from the European Union. A referendum of which almost anyone of voting age can participate was conducted on 23rd June 2016 to decide whether the United Kingdom was to leave or stay in the European Union. The results were for leaving, winning by only 4%. Flag of the European union ( of_europe.svg.png ) There are many factors that had lead to the finalisation of that decision. As an economically developed country, the UK acts as one of the main contributors to the EU, in order to maintain a certain standard in poorer member countries. Because of this, the UK spends a lot of money in the EU each year, up to 11.3 billion in It is also possible that by being a member of the EU, the UK s trade industry is hindered, being limited to mostly only countries in the trading bloc. Furthermore, due to the migrant crisis which started in 2015, a large number of refugees and migrants, a majority of which originate from Syria, have crossed into the EU. Germany has received the highest number of asylum applications at more than in 2015, while the UK received 60 applications for every residents. The average number of applications in each member country was 260. Opinion polls taken after the EU accession in 1973 revealed that they would wish to join the EU. In the United Kingdom, European Communities referendum of 1975 showed that two thirds of British voters wanted to stay. However, in 1990, the first full year of Thatcher s term, the highest ever rejection of membership was measured. The UK joined the EU on their third application. 3

4 The treaty of Accession was signed in January 1972 by Prime Minister Edward Heath. The United Kingdom s membership came into effect on 1st January In 1975, the UK held a referendum on whether to stay in the UK and all major political parties supported staying. Euroscepticism has been increasing since Surveys have shown that 22% wish to withdraw from the EU, 43% wish to remain within the EU and attempt to diminish its power, 38% supported both options. 4

5 Current Issue: Brexit has caused many issues to arise both within the UK itself, and amongst members of the EU. The UK was one of the main economic foundations of the EU, and with poorer member countries maintaining their welfare plans, the EU could lose a lot of money. The Pound Sterling will be devalued, increasing prices of imported goods, such as oil, food, and manufacturers and domestic inflation. The UK will also face a decline in capital flows as the UK is seen as a more risky place to invest in. Brexit has hugely affected the United Kingdom economically. Although the economy did grew 0.5% in the three months after Brexit, this growth is slower than the previous quarter with a rate of 0.7%. To little surprise, the pound lost value drastically after the Brexit referendum by the end of June and declined to a three-year low against the Euro after the announcement that UK would begin formal negotiations about leaving the EU. Interest rate declined to a new record low in the UK of 0.25% in August. This interest rate is still kept in November. In addition, there are changes politically in the United Kingdom, namely Theresa May, replacing former Prime Minister David Cameron. Brexit also weakens the European Union and the forces that support greater immigration, such as Germany and France. However, this has not been seen much as Brexit has not gone into effect. 5

6 Problems Economic: The economy would be a critical issue as the economic outlook for the country if it left the EU would be generally negative and might even cause a recession. Many economists predict an immediate and significant impact on the UK economy and consumer confidence. The economy only grew by 0.5% in 3 months after the Brexit vote which was slower than the 0.7% rate but still stronger than the estimated increase of 0.3%. The fall in pounds helped exporters but made it expensive for a foreign holiday for the British. Even Tesco had temporarily stopped selling Marmite to online shoppers as its biggest supplier, Unilever wanted to increase prices to compensate for the drop in value. However, the weaker pound makes it cheaper for overseas tourists and results have shown that flight bookings to the UK rose 7.1% after the vote png Prime Minister Theresa May has insisted that Britain wants to restrict the free movement of the EU members but also retain access to the single market. However, the EU leaders have made it clear that UK cannot be a member of the single market without accepting free movement of the EU workers as well. Social: Brexit has brought about a rise in xenophobic sentiment and hate crimes against the non-white population. As the EU, we must consider what this increase means for Britain, the other member countries in the EU, and the people of colour in Britain presently. A rise in xenophobic sentiment and hate crimes increases the level of danger in Britain for people of colour and our solution must cover a way to take care of these people, to protect them against these harassments. 6

7 As said before, we must also consider the people who are citizens of other member countries in the EU, but work in Britain under a visa. With the borders closing around Britain, these people may lose their jobs, and the percentage of unemployed citizens will inevitably increase in all member countries, resulting in the economy suffering throughout the EU as well as in Britain. As delegates of the member countries of the EU, we must come up with a solution that will not only cover the well-being of these citizens working in Britain under a visa, but also one that will protect the economy. Brexit, as stated, was decided partially because of the migrant crisis which started in With such an influential member of the EU leaving because of the migrant crisis, the remaining members must come up with a solution to this problem. In 2015, Angela Merkel, Chancellor of Germany, made a bold declaration: that if the migrants made it to European shores, they would be welcome with open arms. However, in recent months, after the huge influx of migrants from the Middle-East and being blamed by President Elect Donald Trump who claimed that the migrant crisis was the fault of Angela Merkel, Angela Merkel has taken that invitation back, recently making orders to turn boats full of asylum seekers crossing the Mediterranean around. Germany, after taking in easily more than a million refugees over the past two years, has said that they retract their invitation because the invitation only encouraged more people to attempt the journey, on which thousands have already died. The migrant crisis poses many problems to the member countries of the EU, including but not limited to, a shortage of resources. The solution should cover the well-being of the migrants, the well-being of the people in the member countries. We must also discuss the consequences of rejecting asylum-seekers who came from a war-ridden region, and how the EU will cope with the migrant crisis after Angela Merkel s bold statement. Political: Brexit has raised some questions about their politicians and the validity and extent of the information they provide the public with. The information given to the public is released, as we know, by news telecasts, radio stations, and other forms of media. But the information from there is gathered from what the ministers and politicians say. If the citizens of the country are misinformed, then the votes they give may be misplaced. Boris Johnson, a British politician, had greatly supported Brexit in the months before the referendum took place. However, after Brexit was voted upon and confirmed, it was revealed that Boris Johnson had, in fact, been in favour of staying in the EU, saying in an unpublished newspaper column penned in February 2016, Britain is a great nation, a global force for good. It is surely a boon for the world and for Europe that she should be intimately engaged in the EU. The newspaper column revealed that he did indeed support Britain s staying in the EU since about 4 months before the vote was cast, but had never announced it to the public. As a politically influential figure, Boris Johnson s withholding of information and opinion had influenced the public because the public had voted without all the information there was. 7

8 Another question raised by Brexit is the legitimacy of the 4% win. The results of the referendum had been for leaving, at 52%, and for staying, 48%, bringing the vote for leaving ahead by a mere 4%. Countries leaving the EU is a rare occurrence, but now that Britain has left, it is suspected that it will lead to a rise in the number of member countries wishing to leave the EU. Many politicians now question the legitimacy of the win; is a 4% win enough to warrant the making of such an important decision? If not, what should the minimum winning vote be? Should new policies creating criteria for the winning vote be introduced? Britain is comprising of England, Scotland, Wales, and Northern Ireland, and all the different countries had different proportions of leave and remain wins. The independence of the 4 countries is another matter altogether, but the EU should consider what it means for the 4 different countries to leave the EU. Leaving the EU does not just affect one of the countries but all of them, and the EU should consider the consequences of leaving for all 4 of the different countries. Direction of debate We hope that this debate will yield a few possible solutions to the problems Brexit has and will cause. Brexit is, as we understand, a pressing problem not just for the EU, but for the rest of the world as well. This debate will cover the problems that lead up to the UK's decision to leave the EU, how to solve them, the issues that may arise with their departure, how this departure will affect the rest of the world and the EU, and how to solve those problems. Any proposed resolutions should cover as many of the problems discussed, and propose realistic solutions to them. We do not expect you to come up with complex and confusing solutions, but your proposed resolutions should be detailed and realistic. Do take into account the impact Brexit has on the economy. As one of the EU's richest and most influential members, their departure could cause the EU to lose large amounts of money. In fact, this issue is so pressing that, in the hearing of the UK's decision to leave, a German minister has said that the UK should pay a "leaving" fee, or the EU will be in deep trouble. The UK may also face many issues in their departure, such as their economy dropping due to businessmen not willing to invest in them because of a lack of trust (left EU and therefore many deals are not gone through with), or because their market is now limited what with all doors into the UK from the other member countries closing. 8

9 Possible solutions The Norway Model The Norway Model is joining the European Economic Area (EEA), an extension of the EU s internal market consisting 28 member states and members of the European Free Trade Association (EFTA), including Norway. Before joining EEA, the UK needs to join the EFTA. The Norway Model solution is beneficial for the European Union as it keeps the United Kingdom connected to the EU, but still satisfies the referendum result. By doing this, the United Kingdom needs to financially contribute a considerable amount to the European Union. In fact, Norway makes a total annual contribution of 870m. Although this money does not go directly to the European Union s budget, it is transferred to less wealthy countries in the EU and different programs of the EU. This way, the United Kingdom would be able to enjoy the advantages of the European Union s single market and selected programs with, of course, financial contributions, and at the same time relieves the trouble of being an official member of the European Union. The United Kingdom thus does not need to follow aspects of European integration it dislikes and benefits from those it does. However, there are shortages to this solution. If the United Kingdom does proceed to follow Norway s footsteps, and assuming that other EFTA members approve, the United Kingdom needs to abide by most EU s rules and regulations, including immigration, which Theresa May announces as one of the top priority of the regulations that the UK wants to discard. Furthermore, this solution might be difficult to be voted for by the UK s MPs as it needs to continue to make financial contributions to the EU, accepts free movement of people and abide by the EU law, which is incompatible with the referendum vote. The Switzerland Model' Switzerland, unlike Norway or Iceland, is not part of the EEA, but still has more than 100 of its own bilateral trade agreements with the European Union whereby Switzerland adopts some of European Union s provision law to be part of European Union s single market. The European Union largely benefits from the Switzerland as Switzerland pays in the European Union budget and extended the bilateral treaties to the new European Union member states, just like full members did, although each extension requires the approval of Swiss voters in a referendum. On the other hand, Switzerland has authority on the European Union s laws, and at the same time not its member, since European Union law will only apply after a joint bilateral commission 9

10 decides so in consensus. Thus, Switzerland can somewhat control the influence of the European Union and its member states. Therefore, the United Kingdom can follow what Switzerland did as this solution mutually benefits the European Union as well as the United Kingdom itself. 10

11 Bibliography Migrant crisis: Migration to Europe explained in seven charts. (n.d.). Retrieved January 7, 2017, from Britain has shown Germany how to handle a migrant crisis. (n.d.). Retrieved January 7, 2017, from British MPs have slammed the EU's response to the migration crisis as 'lamentable' (n.d.). Retrieved January 7, 2017, from T&r=UK&IR=T Problems facing UK economy post Brexit. (n.d.). Retrieved January 7, 2017, from Brexit is a European problem the EU dodges at its own peril. (n.d.). Retrieved January 7, 2017, from -at-its-own-peril/ Brexit: All you need to know about the UK leaving the EU. (n.d.). Retrieved January 7, 2016, from Will Brexit Britain endure an economic recession? (n.d.). Retrieved January 7, 2016, from THE ECONOMIC IMPACT OF BREXIT. (n.d.). Retrieved January 7, 2016, from Brexit Britain: What has actually happened so far? (n.d.). Retrieved January 7, 2016, from Brexit: What happens now? (n.d.). Retrieved January 7, 2016, from How Brexit has already changed Britain two months after the EU referendum. (n.d.). Retrieved January 7, 2017, from d-what-to-expect-if-article-50-is-triggered-a html 11

12 Boris Johnson's secret pro-eu article revealed. (n.d.). Retrieved January 7, 2017, from Switzerland - European Union Relations. (n.d). Retrieved February 15, 2017, from 12

13 Secondary issue: the Issue of Turkey s Accession Glossary: Accession : acquisition or something added [In context: Turkey joining the EU] Introduction to Issue: In December 2002, the Copenhagen European Council said that the EU would open negotiations with Turkey without delay if the European Council in December 2004, on the basis of a report and a recommendation from the Commission, decides that Turkey fulfills the Copenhagen political criteria. The European Commission recommended that the negotiations start in 2005 but also have precautionary measures. The EU leaders agreed on 16 December 2004 to start negotiations on 3rd October Austria and Germany initially wanted to leave open the possibility that a relationship between Turkey and the EU could be a privileged partnership, without actually having to be an actual member. Turkey s accession talks have been stalled by domestic and external problems. Both Austria and France have said that they would hold a referendum on this issue. However, a later constitutional change allowed the parliament to prevent a referendum. Due to multiple setbacks, the negotiations came to a stop in December In December 2009, the Republic of Cyprus blocked 6 chapters of Turkish accession, including those on Judiciary and Fundamental Rights, Energy, and Education and Culture, arguing that Turkey needs to first finalise its conflicts with Cyprus before being allowed entrance into the EU. As a result of this, no chapter has been opened since June In February 2013, Turkish Deputy Undersecretary of the Ministry of EU affairs claimed that the EU had yet to get back to Turkey regarding the benchmark criteria for opening Chapter 23 and 24, which was to be done after the screening of the chapters, which was completed in It was suggested that this was done to deliberately slow down Turkey s accession. The Cyprus issue refers to the ongoing military invasion and Turkish Occupation which has been in place since 1974, on the northern side of the island. It has also been included in multiple UN reports and resolutions. Although the republic of Cyprus is recognised as a sole state, the north is under the administration, as declared by the Turkish Republic of Northern Cyprus which is guarded by Turkish armed forces. It was recognised as the conflict between the people of Cyprus and the British crown regarding the Cypriot s demand for self-determination. 13

14 Current Issue If Turkey does not join the EU, it would be difficult to tell the economic outcomes. A major economic change would be access to the internal market, which would affect Turkey and the EU members via a new trade arrangement. Accession to the internal market would boost trade for two main reasons. Firstly, there would be no barriers, or at least lesser barriers, and could be thought of as reduced costs. Secondly, the single market would reduce the technical barriers by means of mutual recognition of different technical regulations, minimum requirements, and harmonisation of rules and regulations. Although the customs union between Turkey and the EU have been eliminated, more advancements would have to be made. If Turkey joins the EU, it would have to conform to the EU legislation and enforcement by the European Court of Justice. The EU would also constantly check in on Turkey and other countries on its policies, which would trigger institutional reform, and also reduce corruption in the member countries of the EU. Improvements in institutions and transparency may benefit the economic development of Turkey, as better quality institutions and less corruption could potentially increase trade from 17% to 21%. The institutions would definitely be reformed but experts are unsure to which extent, as being reformed is compulsory when joining the EU trade market. Turkey would also be granted access to the EU funds, and more money would be given to less financially stable countries and regions. Being a relatively poor country with a large agricultural sector, Turkey would qualify for a substantial net inflow of funds from the EU budget if the current rules would still apply after Turkey enters the EU. Although the maximum transfer is capped at 4%, the total amount of funds to Turkey might add up to 8 billion euros every year. However, when Turkey joins the EU, it would be very likely that new policies and rules would have to be decided upon. 14

15 Problems Turkey is a lot poorer than the rest of the countries in the EU. This means that it would benefit greatly with all the money going to help them. Brussels is already taking a lot of money to handle its issues and, with Turkey s accession, it would not benefit the EU, but instead become a financial burden. Secondly, it is argued that an Islamic country cannot be part of a Christian Union, and lastly, people fear that the Turkish citizens would flood into western Europe. Turkey s membership would have a large impact, not because it is a large country, but because it is financially unstable. It is the poor countries, not the rich, that seem interested in joining the EU, and this does not bode well for the EU. Furthermore, the member countries are also afraid that the money would be channeled to these poorer countries, leaving nearly nothing left in their funds for special projects. The other concern is that Turkey would take advantage of the right of free movement, and migrate to the other member countries of the European Union. Even though there is a rule stating that immigration for new members would only be allowed after 7 years of membership, eventually the Turkish citizens would be able to migrate to other countries in search of a better life. If the Turkish migrate to the other member countries of the EU, especially Germany, the most probable migration destination of the Turkish, they would need many more migrants to support the social security systems and would therefore have to rely on immigration to maintain the present level of production and welfare. Furthermore, the EU is not prepared to cope with a Union with at least 28 members and if this treaty fails, it would neglect the political and economic forms. The threat of a persisting integration crisis and possibly a disintegration of the EU holds incalculable consequences for Europe s political stability and Turkey s accession would not be possible. 15

16 Direction of Debate We hope that this debate would be able to solve the issue of Turkey s Accession as well as the multiple issues that may arise from allowing Turkey membership and not. Turkey s Accession would not only affect the economy but would also affect the other countries that are a part of the EU due to the multiple advantages the EU provides for their member countries. Firstly, Turkey s Accession is claimed to only benefit itself and not the rest of EU. It is also said that Turkey might be a burden to the EU, as it would have to receive money from to the EU to support itself due to it being a relatively poor country. It would be benefitting from membership of the EU and, due to its financial situation, may not be able to give back as much, thereby benefitting at the expense of the other member countries. Secondly, since the EU is a poor country with a large area, it would have a rather large population but it would not be able to support it and would lead to citizens wishing to migrate to other countries in hope of leading a better life, especially if Turkey enters the EU, since the citizens would be able to travel around the EU member countries freely and with minimal documents. This would only benefit the Turkish immigrants and not the citizens of the member countries receiving the immigrants Lastly, the EU might not be able to accommodate Turkey with the issues and disapproval from the other countries resulting in possible financial problems within the EU, which would neglect all of the other member countries and none of them would benefit. We hope that all of you would be able to resolve these situations by thinking out of the box and working together to form a viable and realistic resolution that would satisfy all these problems. 16

17 Possible solutions The Norwegian solution Through a referendum in 1972 and another in 1994, Norway had come to the decision to negotiate a semi-detached relationship with the EU through it membership of the European Economic Area. This decision allowed them access to the single market, but the country would have no vote over EU rules. Similar to the situation Norway is in, the UK will have access to the single market, but have no say in the EU rule and policies. To make this arrangement their own, Turkey would have to join the EEA, which, for Norway, allows full access to the single market. This arrangement allows Norway to conduct trade relations with the other states and countries of the EU without having to pay customs fees, except food and drinks, which are subsidised by the EU. However, in return, Norway has to implement all the EU laws regarding the internal market, effectively making them implement about three quarters of all EU laws. For Turkey, to choose the Norwegian solution will be extremely expensive.turkey is already financially strapped for money. Should they choose this arrangement, it may very well make things worse for themselves financially. The Ankara Agreement Turkey applied to be a member of the European Economic Community in The ECC suggested the Ankara Agreement which would eventually slowly lead to full accession. It was signed on 12 September 1963 and included a three-step process to aiding Turkey in joining ECC. The customs union would start to introduce economic and trade policy. An Association Council would control its development and give Agreement detailed effect by making decisions. In 1970, there was an additional protocol. One agreement would be financial assistance to Turkey from ECC including loans worth 175 million EC during 1963 to ECC trade to Turkey in the form of Tariff quotas proved to be less effective but ECC s shares in Turkish imports rose substantially then. The agreement wanted free circulation of workers, establishments and services including virtually total harmonisation with ECC policies regarding the internal market. It excluded Turkey from political positions and precluded its recourse to the European Court of Justice for dispute resolution to some extent. The agreement was part of ECC law and Turkish nationals have been given a set of rules the ECC requires them to abide by. Under Article 6(1) of Association Council Decision 1/80, Turkish nationals legally employed in the ECC member state for a certain time gains rights to remain or switch employment in the state. A Turkish national legally employed by the same employer for a year has the right to permission from the member state to remain in employment. A Turkish legally employed in a certain area of work has right of permission from member state to take employment with any employer in that field. A Turkish national legally employed for 4 years has the right to permission from the member state to take employment with any worker. 17

18 Bibliography Accession of Turkey to the European Union. (n.d.). Retrieved January 7, 2017, from Cyprus dispute. (n.d.). Retrieved January 7, 2017, from Assessing the economic implications of Turkish accession to the EU. (n.d.). Retrieved January 7, 2017, from h-accession-eu.pdf Turkey's EU accession: the Norwegian solution. (n.d.). Retrieved January 7, 2017, from Turkey and the EU: Issues and Challenges. (n.d.). Retrieved January 7, 2017, from Ankara Agreement. (n.d.). Retrieved February 12, 2017, from 18