If the Eurozone does collapse, or if
there is just a second European credit crunch, then Britain will be
relatively insulated. We will still suffer a lot, but less
than the Eurozone itself. However, the EU has a useful mechanism for
sharing the pain: labour migration, guaranteed by freedom of movement
within Europe. Although it is low compared to the US, it has still
been high enough over the past decade to make immigration a big
political issue in Britain. The government has pledged to cut
immigration to the tens of thousands. Good luck with that when
Eurozone unemployment increases above its already high level. There
will be increasing pressure to pull up the drawbridges.
The Government's pledge to reduce immigration to 10s of 1000s relates to non-EU immigration alone.
ReplyDeleteThank you for pointing this out. Still, I don't know if it will reduce the political pressure to do something -- assuming that intra-EU migration does increase.
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