CAN AN INDEPENDENT BRITAIN SURVIVE?

The answer is categorically: Yes.

One of the things often trotted out when mention of us breaking our ties with the EU is that we would suffer a massive economic collapse. This is nonsense. Greenland was once part of the EU, pulled out, and prospered as a result. With no disrespect to Greenland, if they can do it, so can we.

These are the realities of us pulling out.

1) The EU would impose its external tariff on British exports to Europe, making very little difference to British companies, since the majority of their exports go outside Europe anyway. The World Trade Organisation restricts the EU to an external tariff of around 6%, so the effect would be quite small. Britain would almost certainly be able to negotiate for itself a smaller tariff - in the way that Switzerland has. This would drive down the cost of leaving the EU even further.

2) There would be a sustained exchange rate with the Euro, which would be to Britain’s advantage.

Bear in mind there have been frequent discussions on devaluing the pound sterling prior to entering the single European currency.

3) The external tariff on Britain's imports from outside the EU would disappear. Britain would probably gain more from this than it would lose from the imposition of a tariff on British exports to Europe, because we buy less from Europe that we export to it.

4) A Britain outside the EU would be able to make special trading deals with other countries - such as those in 53 members of the Commonwealth of Nations. This could be hugely advantageous to our economy. We could build a free trade market with 53 nations in strategic locations all over the globe, as opposed to 27 member states in one location.

5) It has been said that if we left the EU, countries from outside Europe (such as the USA and Japan) would invest less with us. In reality, Britain attracts more outside investment (Foreign Direct Investment) than the other European countries because its market is still largely unregulated. Once independent, Britain would reduce the number of regulations limiting trade to foreign companies. EU regulations in this regard are an economic minefield. Many countries would leap at the chance to invest in a less regulated country, and the tariffs we’d pay would be pocket change by comparison to the positive impact on our economy.