Brexit and EU Regulation

Arguments over regulation are a central feature of the antagonistic British relationship with the EU. Many Britons think that continental Europeans are more inclined to regulate markets than the UK, and that as the EU itself has become so intrusive, the UK is subject to regulations that damage the economy by imposing large and mostly unnecessary burdens on British businesses. Yet the evidence supports a different narrative: while the EU’s single market is incomplete, especially in services, its efforts to reduce the cost of trade through common rules and standards have been modestly successful. And, in the negotiation over its future relationship with the EU, the UK will face a difficult trade-off between regulatory sovereignty and access to EU markets.