Why the EU really matters

Spoilers. The EU is a success with the perhaps most obvious example being the Single Market which has led to increasing living standards in the EU. But the most important reason for people from the Baltics and Eastern European Countries to join the EU were the EU values of respect for freedom, democracy and human rights. But the EU is not perfect. Once inside the EU, governments with autocratic ambitions as Orban’s Hungary can demount their citizens rights and violate EU fundamental values. 

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Prices in the EU – converging or diverging?

Spoilers. The Single Market and the Euro have decreased price differences within the EU. The process has been stronger for prices of goods than for prices of services. More can be done in EU to complete the Single Market for Services in order to increase competition and lower profits for the benefits of customers. If you agree with this, you should cast your vote on a party that wants to improve the functioning of the Single Market and increase trade within EU and with countries outside EU. 

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A hard Brexit’s a-gonna fall

Spoiler. Everyone in the EU lose due to Brexit but UK residents lose more. The short-term reduction of British GDP is around three times as large as of EU GDP. As time goes by employment rates are restored but due to less trade and lower productivity growth, GDP and welfare will be lower than without Brexit. Most of the burdens of tariffs and NTBs fall on consumers. As time goes by, we and especially UK residents will be poorer than if the UK had remained in the EU. 

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Brexit and Sweden

Most people who try to follow the Brexit process in the British Parliament still do not know whether there will be a Brexit on the 29th of March or not. In the case of a hard Brexit consequences will be worse since firms inside or outside of Britain will not have much time to adapt to the changed conditions. The adaptions will in the worse cases mean that the current supply chains might be disrupted as the existing buyer-seller relationships may need to be replaced due to changes in costs to import and export from and to the UK. Swedish firms relying on British intermediate products may find that relative prices of these products have increased so much that new suppliers must be found. And vice-versa, Swedish firms supplying intermediate products may find that the new conditions may not make the British market profitable anymore.

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