The EU must be reformed fundamentally

Chancellor of the Exchequer of the United Kingdom, George Osborne, said the UK could leave the European Union. The politician argued that the EU does not create favorable conditions for countries that are not members of the single currency zone, as reported by The Telegraph.

28 European states are not involved in fundamental reforms aimed at improving the competitiveness of the economy of those countries which are not members of the eurozone.

Chancellor suggested that the EU will be better to continue to exist in as a small group of associates since the union is unable to provide support for reforms in all participating countries.

In his speech the Chancellor mentioned that the principles underlying the EU are no longer true. The current situation will lead to economic decline and crisis, which is highly undesirable for the UK.

Osborne said about the commitment of government to renegotiate the UK's membership in the EU if Britain decides to stay in the union after the referendum in 2017.

The growing integration of the eurozone is a threat to the financial system of the UK. Now it is imperative to establish the mechanism of legal protection of States which are not included in the single currency zone. Osborne urged Brussels to not force to choose between the United Kingdom's accession to the EU in order to protect their interests, and leaving the union.

However, despite the strong statement, the Chancellor said that the withdrawal from the European Union, as well as joining the eurozone is undesirable and will cause the negative impact on the economic situation in the country.

Over the past six years, the rate of growth of the European economy declined significantly. During the same period the Indian economy grew by one third, China's economy – by 50%. It is projected that over the next 15 years, the share of Europe in world production will decline by half.

Over the last decade the number of European patent applications decreased by half, and youth unemployment was 25%. German Chancellor Angela Merkel said that Europe's share accounts for just over 7% of the world population, 25 % of the economy, and 50% of global spending on social security.

George Osborne believes that the EU has a very simple choice – to conduct reforms or be under prolonged economic crisis.