Thursday 14 December 2017

Does the EU really have more control of the negotiation with Britain?

Many EU countries have asked the UK Prime Minister for the clarity over the future relationship between the EU and Britain, as it seems to pass the mark of Phase 1. May is still hiding her cards, this is a negotiation strategy. However, when Britain and the EU are sitting on the negotiation table, who can have more dominant power?

In terms of the influence and aggregate power, the EU has a much greater power and influence over Britain, as the EU has a larger market and economy, it has a greater population size. In this way, Britain has a weaker negotiation power, which means it may get  less advantageous deals from the negotiation. However, the EU has a major disadvantage on its side. Britain has very divisive opinions within its country about Brexit; within the EU, the opinions could be more divisive and different countries could have different interests that could violate each other. Britain has one leader, the Prime Minister May; but the EU does not have a specific leader, though Germany and France could potentially be the leaders of the EU, individual countries can still have different interests and have their says in the negotiation, this makes the coordination between the EU countries more difficult and costly. When considering the costs of coordination, the EU countries may not create enough pressure on Britain. In addition, Britain is able to take advantage of the division within the EU. Moreover, the information between the EU countries is incomplete and imperfect, they can only make decisions on their expectations about each other. When their expectations are different from the truth, their decisions are not the most efficient.

Therefore, although the EU is much larger in terms of its size, the information asymmetry within the EU and the cost of coordination actually given Britain more negotiation power on the Brexit negotiation table.

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