• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

To what extent has control of the economic policy passed from British Governments to non-elected bodies both home and abroad?

Extracts from this document...

Introduction

To what extent has control of the economic policy passed from British Governments to non-elected bodies both home and abroad? The Government was traditionally in tight control over the economic policy for the country but over time the governments powers have become eroded and devolved to other non-elected bodies. The Bank of England's importance rose after 1975 and has increased steadily over the years. After Labour's landslide victory in 1997 on the 7th of May they gave the Bank of England operational independence, which empowered them even more. This gave the Bank of England control over interest rates through the Monetary Policy Committee (MPC), which is made up of five members from the Bank of England and four experts appointed by the Chancellor. The advantages of this are that economic experts and not amateur politicians formulate the monetary policy. It also removes political pressures, which enables a greater co-operation between the Bank of England and other central banks. This also means interest rates are depoliticised and increases the bank's credibility with the market. ...read more.

Middle

The chancellor retains the power of taxation but the EU has now set laws over VAT. Across the EU VAT has to be over 15% as this is the set minimum. The 1986 Single European Act (SEA) tried to create a single market in Europe but it removes a lot of control from the Government. It again tries to enforce uniformity and standardisation, which leads to some of the Governments policies changing to suit the EU. Also since joining the EU the British Government have found that their power over certain aspects of the economy are dwindling. The Common Agricultural Policy (CAP) is a major part of the EU's spending, almost half of its total. It aims to help poorer farmers in Europe by giving them subsides and grants. It has also led to butter mountains and wine lakes. Although the British government pays into this fund the British farmers get a disproportional amount of aid. Many of the British farms are efficient and large and so they do not receive the amount of money they should due to other poorer farms in Europe receiving the money. ...read more.

Conclusion

The Government do have a say in EU law at regular meetings and debates where they can voice their opinion but if the law is passed they can do nothing about it. The Parliament still retains ultimate sovereignty as it can pull out of the EU but this seems more and more unlikely. In conclusion, the Government has suffered from a passing over of control to non-elected bodies such as the EU and the Bank of England but it does retain some constraints over both of these bodies. The Government does constrain the Bank of England through various means such as making them accountable to the Parliament and TSC. It also has to comply with the monetary policy framework that is drawn up by the Government. It also has power over the EU as the control of taxation and foreign policy, for example, is still in the hands of the government. Also Parliament can pull out of the EU whenever they wished to do so but it remains unlikely. This can be seen by Gordon Brown's 'Golden Rules' remaining within the EU's convergence criteria. This is the case as the government are keeping an open mind to joining the Euro and this makes leaving the EU incredibly unlikely. Danielle Hill 13KF ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level European Union section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level European Union essays

  1. A clear explanation of key underpinning economic theories relevant to the EU.

    Threats *Boots faces much more competition from other European businesses, even in the United Kingdom. This can result in the prices forced down; giving lowers profit margins or even resulting in bankruptcy. As firms have access to your country as well as you having access to theirs.

  2. Free essay

    Has British Politics been Europeanised

    However, whether this success and growth is the direct result of economic integration is questionable. In addition, this did generate some positive energy amongst the countries, and create a vision of a "...single Europe, and created wide public support for their continuing efforts."9 Therefore, it can be said, using this evidence that this is an aspect of British 'Europeanisation'.

  1. EU actorness in relation to Environment policy and Development policy: An evaluation.

    in 1992 humanitarian aid provision has become a large component of development policy. Other opportunities for the EU to act outside of its member states came in the form of partnership conventions: * Yaound� convention-This convention combined part four of the EEC Treaty, together with an implementing convention, and governed

  2. Common Agricultural Policy

    Critique Anti-development Criticism of the CAP has united some supporters of globalization with the anti-globalisation movement in that it is argued that these subsidies, like those of the USA and other Western states, add to the problem of what is sometimes called Fortress Europe; The West spends high amounts on agricultural subsidies every year, which amounts to unfair competition.

  1. Sustainable development or fish eat fish world? 'EU external trade policy'.

    and a Common Commercial Policy (now Article 133). Through Article 133 of the EC Treaty, the EC has been given exclusive competence to create common commercial policy (CCP) in the field of the external trade relations. Second, and most important, the EC Treaty covered a wide range of activities both in regard to products and in regard to policies.

  2. An examination of British policy with regard to European Unity during the period 1945 ...

    Such are the origins of European Unity and Britain's central part in it (Pilkington, 1995). Economic suability was seen as a fundamental pre-requisite for staving off the Soviet threat. In March 1947 Britain sought America's financial aid and political endorsement of its peacekeeping aims.

  1. "The World We're In," by British author Will Hutton - A discussion of America ...

    And to be honest, we haven't done all that badly. Europeans, on the other hand, are at a much more remedial stage of accepting those who are different in their own backyard. Almost completely absent are the good parts of America.

  2. The Common Agricultural Policy.

    If world prices are below the intervention prices, then farmers will clearly prefer to sell to the EU authorities rather than export their products. In this case, farmers are encouraged to export their surpluses. However, if there is a shortage of foodstuffs in the EU it can be relieved by reducing the threshold price and by reducing subsides on exports.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work