Scotland’s Place in Europe

SCOTLAND’S PLACE IN EUROPE | 1
CHAPTER ONE:
INTRODUCTION
About this paper
1. In the referendum of 23 June, while the UK as a whole voted to leave the European
Union (EU), a large majority in Scotland voted to remain part of it. The way
governments across these islands respond to the result will have significant
consequences for our prosperity, our rights and freedoms as EU citizens, and our
constitutional arrangements. We must recognise and respond to the concerns of
those who voted to leave as well as those who voted to remain. We must also
understand the profound issues of peace and stability this raises for our near
neighbours. Our choices will also affect our European partners – their citizens living
and studying here, as well as businesses and investors – and our collective ability
to tackle complex, interdependent domestic and international challenges.
2. Our response must also acknowledge that leaving the EU, and in particular any
proposal to leave the European Single Market and the Customs Union, will result in
significant disruption. It will be directly against the democratic wishes of the
people of Scotland and will damage our economy, our social fabric and our future
prospects. While the referendum resulted in a mandate for England and Wales to
leave the EU, that was not the case for Scotland and Northern Ireland, nor did it
provide a mandate for the terms of exit.
3. The challenges posed by the EU referendum result are unprecedented. The Scottish
Government believes that, short of full EU membership, the least worst outcome for
the UK as a whole would be to retain full membership of the European Single
Market through the European Economic Area, and to remain in the Customs Union.
However, the UK Government currently appears to be on a course that will take the
UK out of the European Single Market and the EU Customs Union, a decision which
could cost the Scottish economy up to around £11 billion per year 3 . Therefore, this
paper also offers options for a differentiated solution for Scotland, to safeguard our
economic and social prospects. Our mandate for this approach comes from the
manifesto on which this Government was elected, from the majority vote in
Scotland to remain in the EU, and from the Scottish Parliament’s resolutions on the
matter.
4. The paper goes on to argue that whatever the outcome for the UK and/or Scotland
in terms of the European Single Market, Scotland’s interests within the UK demand
a fundamental review of the devolution settlement – this arises as a result of the
removal of the protections provided by EU law for the devolved institutions and
the rights of citizens. As part of this, the Scottish Parliament must retain
responsibility in already devolved areas like farming and fisheries – there must be
3 http://news.gov.scot/news/brexit-research-shows-economic-risk-to-scotland