EU: The Opportunity Cost

 

The Oxford English Dictionary defines ‘opportunity cost’ as: The benefit that is sacrificed by choosing one course of action rather than the next best alternative.

Or to put that another way……the benefits you could have received by taking an alternative action.

 

Which leads us nicely on to cost to the UK of EU membership or should that be ‘opportunity cost’?

 

So what exactly does it cost us to be in the EU? Here are the big numbers for you:

 

1.     The UK's forecast (it is being finalised currently) net cash contribution to the EU budget for 2015 is £8.5billion but the actual amount for 2014 was £9.8billion.

 

2.     The UK contributed 12.5% of the total EU budget in 2015.

 

3.     Of the 28 countries in the EU, 2/3rds are takers (receive EU subsidies).

 

4.     Of the 1/3rd givers, the UK is the third largest (i.e. only 2 countries pay more).

 

 

Is it any wonder that the EU is desperate for the UK to remain?

 

Contributing £8 - £10 billion a year is not abstract. It's a fact & represents the extra cash we pay to be a member of the EU.

 

But here is where all political parties in the EU in / out debate fall down……what is the financial benefit of EU membership? We know the cost. We understand the cost. Now tell us the ‘benefit’ figure so we could then understand if the negative issues surrounding migration, EU Law making we are forced to use, etc. is worth the sacrifice for our greater financial good.

 

Only then can we begin to understand the opportunity cost. Only then can we (the electorate) make good, honest and valued judgements to base our EU in / out vote on.

 

Not too much to ask is it?