BREXIT: Statement of Prof. Dr. Hans-Werner Sinn

Brexit is not just the responsibility of the British. The EU‘s unwillingness to curtail the social inclusion principle for EU migrants, as demanded by Prime Minister Cameron, has contributed to the disastrous Brexit decision for Europe. There is much to suggest that Cameron was right with his request. A system that allows for free migration between the welfare states of the EU and also provides those social welfare benefits in the host country that cannot be interpreted as a form of wage cannot exist in the long run. It leads to the concentration of beneficiaries of social welfare in well-developed and well-resourced welfare states and hence the erosion of  heir social systems. For the stability of the EU, it would be better if the respective EU country of origin or “home  ountry” was responsible for the „inherited“, non-employment-related benefits, while the host country would have to provide the employment-related social benefits. Only in such a system freedom of movement and  he welfare state can coexist. The EU should offer the British to reform its own social inclusion rules so as to  ive them a reason for a new referendum.

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