Rachman is noted for advocating a looser, non-federal European Union. In 2002, he staged a debate in "Prospect" magazine with Nick Clegg, who was then an MEP for the East Midlands. Clegg argued strongly that Britain should join the European single currency. Rachman disagreed, writing, "I believe the political changes involved in joining the Euro carry enormous risks. I do not believe it is 'progressive' or 'self-confident' to take those risks." More recently, Rachman has argued in the "FT" that the EU must take a flexible and open approach to the political demands of their member states or face failure. However, during the UK referendum on EU membership, Rachman argued for the UK to vote to stay inside the EU – arguing that the organisation, although flawed, was an important guardian of democratic values and security in Europe. Rachman was also one of the first commentators to predict that the UK would vote to leave the EU.