Ten years after the Brexit referendum, the EU's former chief negotiator has suggested that the United Kingdom might be able to rejoin the bloc while keeping its pound and staying outside the Schengen travel area — a statement that has reignited debate about what a return to Europe could look like.
Michel Barnier, who served as the EU's chief Brexit negotiator and later as prime minister of France, said in an interview that the UK could regain the special opt-outs it enjoyed before leaving. "It is perfectly possible to have opt-outs in these fields," he said, referring to the single currency and the passport-free Schengen zone. He added that the old terms were not an obstacle: "I cannot see any obstacle to the UK keeping the pound and remaining outside Schengen should the country rejoin."
“Explains Michel Barnier's suggestion that the UK could keep opt-outs if it rejoins the EU.”
Under EU treaties, all member states are expected to join the euro eventually, except Denmark, which has a permanent opt-out. New member states are also legally obliged to join Schengen once they meet technical requirements. However, Barnier argued that precedents already exist: five of the 13 countries that have joined the EU since 2004 are still not in the euro, and Ireland has an official opt-out from Schengen. The treaties do not specify a timetable for joining either area.
Barnier's comments come ahead of the 10th anniversary of the 2016 referendum, and offer a boost to campaigners who argue that rejoining on favourable terms is realistic. Polling has shown that support for re-entering the EU is stronger when the old terms — including the budget rebate secured by Margaret Thatcher — are on the table. Barnier did not comment on whether the rebate could be kept, saying that would be a matter for negotiation if the UK formally applies.
The debate touches on central questions of sovereignty, economics and identity. The UK's opt-outs were a hallmark of its semi-detached membership before Brexit, allowing it to keep its own currency, border controls and a reduced budget contribution. For many voters, those terms made EU membership palatable. For others, they symbolised a refusal to commit fully to European integration.
For UK readers, the significance is practical: Barnier's remarks suggest that a future government could negotiate a return without accepting the euro or open borders, potentially making the idea more politically acceptable. However, any application would require the unanimous agreement of all 27 member states, and opposition from countries like Poland — whose foreign minister recently suggested the UK would face tougher terms — could complicate matters.
Q: Could the UK keep the pound if it rejoined the EU? Barnier said there is no legal obstacle to the UK keeping the pound and not joining the euro. Five current member states are not in the eurozone, and Denmark has a permanent opt-out.
Q: What are the rules on joining the euro and Schengen? New members are expected to join the euro eventually, but no timetable is set. Similarly, new members must join Schengen once they meet technical, legal and security requirements, but Ireland has a permanent opt-out.
Q: Is the UK likely to rejoin the EU soon? There is no formal process underway. Barnier's comments are influential but not official policy. Public opinion has shifted in favour of rejoining, especially if old opt-outs are preserved, but any decision would require a new referendum and complex negotiations.
Barnier is due to visit London next week, where he is expected to discuss the EU's future with UK stakeholders. The 10th anniversary of the referendum on June 23 will provide a moment for reflection on the costs of Brexit and the possibilities of reversal — but no immediate change is on the horizon.