UK at a critical crossroads vis-a-vis its place in Europe

PRIME Minister David Cameron will reportedly announce next month the date of the "in-out" referendum on Britain's membership of the European Union. The issue of Europe has become centrestage again in British economic and political debate with new polls showing that the country may be edging towards exit.

This week alone, the opposition Labour Party's position on the EU has become blurred with the election of Jeremy Corbyn as leader, while the country's major trade unions decided on Tuesday that they may now support exit. Meanwhile, the government's renegotiations of the terms of the UK's future membership of the bloc are apparently failing to make much headway.

For instance, the government is looking for a way to prevent eurozone countries from proposing changes to the European single market that discriminate against the City of London and UK economy. However, potential options that have been aired, including a mechanism to protect the interests of non-euro countries, are a source of concern to some EU leaders who believe they could evolve into a British veto over…