Scotland’s Place in Europe

SCOTLAND’S PLACE IN EUROPE | 31
Benefits and challenges of European Single Market differentiation for Scotland
129. The key benefits of the “Norway option” compared to Scotland being taken
completely out of the EU and single market, is that it would allow Scotland to
continue to trade in both goods and services within a European Single Market of
500 million people, free of most tariff and non-tariff barriers to trade, while
retaining our trading relationship with the rest of the UK.
130. Moreover it would mean that – as we would remain committed to upholding the
“four freedoms” – Scottish people would retain the right to travel, live, work and
study in other EU and EEA countries, with the same social, economic, health and
consumer protections that EU citizens would continue to enjoy here. We would also
have a continued assurance that, regardless of the policies of the government of
the day, minimum employment, social, environmental and consumer rights would
be guaranteed. Remaining within the single market would also provide the best
platform for seeking continued co-operation with the EU in a range of other areas,
for example Horizon 2020, Erasmus, Europol and wider initiatives to tackle climate
change.
131. It would not just be Scotland that would potentially benefit from such a solution.
We consider that there would also be economic advantages to the UK as a whole in
having at least part of its territory still within the European Single Market and able
to retain and attract indigenous and inward investment on that basis. It would be of
benefit to the EU, both economically and through broader policy collaboration, to
retain part of the UK within the European Single Market and as an enthusiastic
contributor to European co-operation.
132. However, there are a number of questions that will be asked about the feasibility of
Scotland remaining with the European Single Market while the rest of the UK
leaves. Some of these are practical questions relating to free trade and movement
within the UK. Others are legal considerations and involve the capacity of Scotland
to operate within the single market framework without being an independent
country.
133. In the remainder of this chapter, we set out – as high-level considerations at this
stage – how each could be dealt with. We consider status, legislative and regulatory
compliance, free movement of people within the UK and continued free trade
within the UK. Further detailed discussion will be required with the UK Government
on each of these issues.
134. In order for Scotland to continue in membership of the European Single Market the
Scottish Government would require to make financial contributions to the
administrative and operational expenditure of the EU, just as other EFTA EEA
countries do. The amount of such contributions would be a matter for negotiation
in due course but they could be met from Scotland’s pro-rata share of current UK
contributions to the EU if – as would seem entirely reasonable – this money was
available to the Scottish Government when the UK leaves the EU. These would be
less than our current contributions as a Member State, and would depend on the
degree of our collaboration in programmes such as Horizon 2020.