“Labour Party Annual Conference in London” is noted in Helmut Schmidt’s diary for 30 November 1974. Having been in office as Federal Chancellor for just six months, he gave a speech at the close of the British Labour Party’s conference at the invitation of the British Foreign Secretary, James Callaghan. Schmidt seized this opportunity to make a strong case for Britain to remain in the EEC, which it had joined just a year and a half earlier: “We want you to stay in the Market,” Schmidt made clear to his audience, emphasising the need for international cooperation to tackle the energy crisis, the global threat of inflation and massive unemployment. The sceptical mood at the party conference turned to applause, and Schmidt’s speech received considerable attention in the national and international press.
Britain’s long road to the EC
As early as 1963 and 1967, Britain had applied for membership of the EC, but French President Charles de Gaulle rejected the application out of concern for France’s leading role. Accession was finally achieved in 1973 under Prime Minister Edward Heath, in the midst of the economic and energy crisis, which had also severely affected the United Kingdom. Among the public and in political circles, this move was considered controversial; after all, many saw it as the reason for rising prices.
Renegotiations
One of the most prominent voices of dissent was Harold Wilson. As leader of the Labour Party, he had been Prime Minister until 1970 and had himself initiated the UK’s second application for membership during his time in office. However, after losing the election, Wilson and his party were in opposition, and critical voices within the party grew louder. Fearing that the Labour Party might split over the European issue, Wilson proposed that, in the event of an election victory, the UK’s accession terms should be renegotiated and that a national referendum should subsequently be held on whether to remain in the EC. In this way, he managed to appease the Eurosceptics in the party without himself coming out against membership. His proposal was incorporated into the Labour Party’s manifesto for the 1974 general election, which he won by a narrow majority. As the party remained divided on the European issue, Wilson convened a conference of delegates on 30 November 1974, at which Helmut Schmidt also spoke.
Despite the Chancellor’s rousing speech and his personal endorsement of Britain remaining in the EEC, two major points of contention remained during the subsequent negotiations: Firstly, there was the issue of food imports from the Commonwealth – the confederation of former British colonies with which Britain conducted a large proportion of its trade after the Second World War. The United Kingdom sourced a large proportion of its dairy products, such as butter and cheese, from New Zealand, whilst the EC member states themselves also produced these foods. Secondly, the British delegation criticised the fact that they had to hand over their customs revenues, which instead flowed into the EC. At the end of the renegotiations, Harold Wilson finally agreed to a compromise whereby the UK would retain easier access to New Zealand butter until 1980 and, in return, would refrain from seeking sweeping changes to the EC budget.
“Your Right to Choose”
Subsequently, under the banner “Your Right to Choose”, the Wilson government initiated the first referendum on Britain’s withdrawal from the EC and thus the first nationwide referendum in the history of the United Kingdom. “Her Majesty’s Government have decided to recommend to the British people that they vote to remain in the Community” was the appeal to the public. On 5 June 1975, the majority (around 67 per cent) of British voters voted to remain, thereby sending a clear signal in favour of a European Community that included the UK.
‘Brexit’
Just a few years later, the European question reappeared on the domestic political agenda, culminating in 2016 in a second referendum, in which 51.9 per cent of voters voted to leave the EU. This was finalised on 31 January 2020 and became known as “Brexit”.
This had primarily economic consequences for the UK. British exports to the EU fell as a result of leaving the single market, though tariffs were avoided thanks to a free trade agreement. The country suffered from sharply rising energy prices, high inflation and staff shortages in the healthcare sector, the hospitality industry and logistics, as restrictions on the free movement of people made it more difficult for EU citizens to work in the UK.
In July 2024, the Labour government announced its intention to work more closely with the EU again, though it ruled out rejoining.
