Editing Harold Wilson (section)

====Europe====
[[File:Bundesarchiv B 145 Bild-F019859-0022, Staatsbesuch Harold Wilson, Ludwig Erhard.jpg|right|thumb|Wilson with West German Chancellor [[Ludwig Erhard]] in 1965]]

Among the more challenging political dilemmas Wilson faced was the issue of [[United Kingdom membership of the European Economic Area|British membership of the European Community]], the forerunner of the present [[European Union]]. An entry attempt was vetoed in 1963 by French President [[Charles de Gaulle]]. The Labour Party in Opposition had been divided on the issue, with Hugh Gaitskell having come out in 1962 in opposition to Britain joining the [[European Communities|European Community]].<ref>{{cite ODNB|id=33309|title=Gaitskell, Hugh Todd Naylor|last = Brivati|first = Brian|author-link = Brian Brivati|date=6 January 2011}}</ref> After initial hesitation, Wilson's Government in May 1967 lodged the UK's second application to join the European Community. It was vetoed by de Gaulle in November 1967.<ref>{{cite book|first=David |last=Gowland|title=Britain and European Integration Since 1945: On the Sidelines|url=https://books.google.com/books?id=dvt-AgAAQBAJ&pg=PA69|year=2008|publisher=Routledge|page=69|display-authors=etal|isbn=9781134354528|access-date=15 January 2019|archive-date=10 January 2020|archive-url=https://web.archive.org/web/20200110180415/https://books.google.com/books?id=dvt-AgAAQBAJ&pg=PA69|url-status=live}}</ref> After De Gaulle lost power, Conservative prime minister [[Edward Heath]] negotiated [[Accession of the United Kingdom to the European Communities|Britain's admission to the EC]] in 1973.

Wilson in opposition showed political ingenuity in devising a position that both sides of the party could agree on, opposing the terms negotiated by Heath but not membership in principle. Labour's 1974 manifesto included a pledge to renegotiate terms for Britain's membership and then [[Referendum Act 1975|hold a referendum]] on whether to stay in the EC on the new terms. This was a constitutional procedure without precedent in British history.

Following Wilson's return to power, the renegotiations with Britain's fellow EC members were carried out by Wilson himself in tandem with Foreign Secretary [[James Callaghan]], and they toured the capital cities of Europe meeting their European counterparts. The discussions focused primarily on Britain's net [[Public finance|budgetary]] contribution to the EC. As a small agricultural producer heavily dependent on imports, Britain suffered doubly from the dominance of:
:(i) agricultural spending in the EC [[Government budget|budget]],
:(ii) agricultural [[import tax]]es as a source of EC [[revenue]]s.

During the renegotiations, other EEC members conceded, as a partial offset, the establishment of a significant [[European Regional Development Fund]] (ERDF), from which it was agreed that Britain would be a major net beneficiary.<ref>Andrew Moravcsik, "The Choice for Europe" (Cornell, 1998).</ref>

In the subsequent referendum campaign, rather than the normal British tradition of "collective responsibility", under which the government takes a policy position which all cabinet members are required to support publicly, members of the Government were free to present their views on either side of the question. The electorate [[1975 United Kingdom European Communities membership referendum|voted on 5 June 1975]] to continue membership, by a substantial majority.<ref>[http://news.bbc.co.uk/onthisday/hi/dates/stories/june/6/newsid_2499000/2499297.stm 1975: UK embraces Europe in referendum] {{Webarchive|url=https://web.archive.org/web/20180620044520/http://news.bbc.co.uk/onthisday/hi/dates/stories/june/6/newsid_2499000/2499297.stm |date=20 June 2018 }} BBC On This Day.</ref>