Month: April 2020

Brexit Watch: Thursday 30 April 2020

Note: this article was originally published at The Conservative Woman on Wednesday 29 April 2020

Choosing four recent key Brexit-relevant story headlines which, while not necessarily meriting a full-length article, nevertheless warrant two or three paragraphs of comment, rather than merely a couple of lines.

NB: (£) denotes article behind paywall

 

Facing New Crises, Macron Repackages Old, Bad IdeasNational Review

Never slow to perceive, in the comfort-blanket of pan-European integration where his assumption of French joint-‘leadership’ is more wishful thinking than reality, a distraction from France’s economic sclerosis and ongoing political crisis, Macron sees in COVID-19 yet another opportunity to deepen the former, via financial aid funded by mutualised debt.

Not for the first time, however, he overlooks the same fundamental flaw which plagues the euro: that a currency union not backed by a fiscal union contains, not only an inherent structural design flaw, but even the seeds of its own potential failure.  Predictably, Macron’s idea is being resisted by the same quartet of Germany, Austria, Finland and The Netherlands who fear being saddled with the lion’s share of contributions.

After weeks of ineffectual dithering, the EU is finally moving towards some kind of aid package.  Delaying Brexit for an extension to Transition could see Britain on the hook for a substantial contribution, so should be avoided.

 

The future will be won by nimble, innovative nation-statesGlobal Vision

As several earlier TCW articles in our Brexit-Watch series have noted, in the early stages of the COVID19 pandemic, the EU was paralysed by a combination of institutional atrophy and indecision.  That led to individual member-states’ democratically elected governments, even within the Franco-German alliance, moving swiftly to take whatever decisions, including abandoning Schengen and closing borders, they deemed to be in their best national interests, by-passing and not even bothering to consult Brussels in the process.

Not only is this a genie which won’t easily be put back in its bottle; it will have consequential effects on member-states’ post-COVID19 recovery strategies.  A reversion to centralised, Brussels-dictated, one-size-fits-all regulation of everything from business practices to product specifications would deprive the weaker EU economies of the flexibility they are going to need, particularly after their differing exposure to the economic and fiscal costs of coping with coronavirus.

From Britain’s perspective, that must strengthen our case for rejecting the EU’s demands for equivalence or any ‘level playing field’ in our post-Brexit trade relationship with the bloc.

 

The Brexit Fight goes onGet Britain Out

One under-reported feature of the Brexit trade talks resuming by video-conferencing is that, with the Department of International Trade seemingly having curtailed its activities considerably with the COVID19 pandemic, the UK-USA trade talks which were previously running in parallel with the UK-EU trade negotiations apparently remained suspended.

Given the obvious advantages of not only keeping trade talks with the USA going but also of publicly demonstrating that continuance to the Brussels negotiators, it’s regrettable that they did not resume at the same time, and they should be benefiting from equal emphasis.

 

EU leaders ‘must intervene to break Brexit trade talks impasse’ – Telegraph (£)

In contrast to Barnier’s recent typically petulant and disingenuous outburst of frustration towards Britain for insisting that it will neither request an extension to the Brexit Transition period nor accede to the EU’s demands for close regulatory alignment and continued access to UK fishing waters, this latest intervention from the Prime Minister of Latvia is intriguing.

What Mr Karins appears to be doing is suggesting that EU member-state heads of government in effect take over the direction of negotiations from Barnier and reach a deal with the UK that is satisfactory to both parties, in contrast to Barnier’s intemperate supranationalist intransigence.  He seems to be recognising, in a way which apparently eludes the more ideological Barnier, that in responding to COVID19 the EU has a bigger problem on its plate than Brexit.

The UK spokesman’s reported remark about EU negotiators being simply not used to this dynamic of the UK standing up for itself‘ certainly rings true.  If the reading of the Latvian PM’s intervention is correct, then our UK negotiators should have no hesitation in fomenting and exploiting a potential division between Brussels and EU member-states to further Britain’s interests.

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Brexit-Watch: Thursday 23 April 2020

Note: this article was originally published at The Conservative Woman on Tuesday 21 April 2020

Choosing five recent key Brexit-relevant story headlines which, while not necessarily meriting a full-length article, nevertheless warrant two or three paragraphs of comment, rather than merely a couple of lines.

(NB: (£) denotes article behind paywall.)

 

Frost and Barnier agree UK-EU FTA TimetableGuido Fawkes

Far from acquiescing to the persistent, disingenuous pleas of the Continuity-Remain lobby for the suspension of negotiations with Brussels and the deferment of Brexit via an extension to the Transition period, the Number 10 team appears to be both ramping them up and tightening the schedule.  Perhaps it was lucky that our chief negotiator had his brush with coronavirus early on during the outbreak, rather than now.

It’s also maybe no coincidence that this happened during the week that the PM’s top adviser/chief of staff Dominic Cummings returned to Downing Street after his own bout of COVID-19, and almost immediately upped the pressure on Brussels by not only categorically ruling out an extension but also gearing up preparations for a No Deal Brexit on 31 December.

 

Government rejects IMF advice to extend Brexit transition periodTelegraph (£)

We will not ask to extend the transition period, and if the EU asks, we will say no.’

How gratifying it was to read such an unequivocal response from Number 10 to the unsolicited ‘advice’ of the same IMF which, in 2016 when headed by the Christine Lagarde now spooking the financial markets by failing as head of the ECB to deal adequately with the burgeoning euro crisis, participated enthusiastically in George Osborne’s anti-Brexit Project Fear, and endorsed his Treasury’s wildly inaccurate forecasts of the economic Armageddon which it claimed would surely ensue from merely a vote to leave.

The IMF has no formal relationship to the EU, and certainly has no, in effect, locus standi in UK-EU negotiations.  In addition, the present incumbent, Bulgaria’s Kristalina Georgieva, being a former both Eurocrat and Vice-President of the unelected EU Commission presided over by the invariably well-refreshed Jean-Claude Juncker might suggest that its ‘advice’ was not entirely impartial, and had more to do with pro-Brussels politicking than a concern for trade uncertainty.

Even if this were not the case, the IMF itself is much diminished and discredited; it has been ever since its own watchdog revealed in 2016 the extent to which its management had played down the structural flaws and unemployment effects of the Euro because of its ideological commitment to the EU Project, and allowed European Union insiders to exploit the Fund’s resources to rescue their own deficient currency union and banking system.

 

A Brexit TutorialBriefings for Britain

Amid the demands for an extension of the Brexit Transition period from unreconciled Remainers/Rejoiners shamelessly seizing on the coronavirus outbreak as an excuse to at least defer, but preferably halt, Britain’s full and final exit from the EU, comes a timely reminder of why the millions of people who voted for it, but whose opinions are under-represented in the political, media, cultural, business and academic environments where EU-philes cluster, did so.

Despite the vote for Brexit having been dismissed by its opponents as a somehow democratically illegitimate expression of insular ignorance and prejudice, the serious psephological and sociological analysis that now exists shows it to have been the predictable consequence of major social and political changes, occurring over a long period, which disproportionately benefited a minority metropolitan elite and managerial overclass.

As the political beneficiary of the ballot-box revolt against that overclass, the current government should be aware that to accede to its current demands to halt Brexit would be the first step on the road to political defeat.

 

Europe apologises to Italy: von der LeyenAnsa English edition

When sorrows come, they come not single spies, but in battalions.

With –

  1. the UK’s resolve that, come what may, there will be no extended Transition period showing that Brexit is not going according to Brussels’ preferred script;
  1. the EU’s centralised authority in pieces as its member countries’ governments unilaterally decide their individual coronavirus response policies to protect their citizens at nation-state level without even consulting it; and
  1. the Eurozone facing imminent crisis as its more fiscally-precarious economies struggle to cope with the effects of their COVID-19 lockdowns,

von der Leyen could well have contemplated the inherent truth of Claudius’ words in Shakespeare’s Hamlet as she felt the need to apologise in the EU Parliament for its cavalier treatment of Italy during the early stages of the outbreak.

Yet her patently untrue, arguably even semi-deluded, assertion that ‘Europe has become the world’s beating heart of solidarity‘ suggested that, even in the present circumstances, a supranationalist, integrationist pan-Europeanism still dominates her Commission’s thinking.  Britain should not hesitate to emphasise to the Brussels negotiators that concluding a fast-track trade agreement with us will let the EU cross off Brexit as a subject and concentrate on addressing its internal troubles.

 

Four reasons why leaving the EU will help us recover from the lockdown quickerTelegraph (£)

The UK Government’s lockdown is deliberately inducing a severe recession; but already some of the support for small businesses announced by the Chancellor in his package of measures is reportedly being prevented by EU rules on state aid from reaching their intended beneficiaries, needlessly exacerbating their difficulties.  Furthermore, for as long as we remain in Transition, we remain subject to EU single-market regulations, when we might conceivably want to eliminate tariffs to counter a rise in food prices caused by falling production.

As if those factors weren’t enough, if Transition is extended, we remain liable for continuing financial contributions to the EU as a matter of routine, before any additional contribution to an EU bailout of the struggling economies on its southern fringe, as well as a rescue of the Eurozone itself.  If we are to have the least worst option of a V-shaped recovery from the coronavirus pandemic, we can ill afford to be committing funds to an institution trying to make it as difficult as possible for us to complete our exit and to disadvantage us in the process.  There is every reason, not to delay our final departure, but to accelerate it.

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Brexit-Watch: Tuesday 14 April 2020

Note: article originally published at The Conservative Woman on Tuesday 14 April 2020

Choosing four recent key Brexit-relevant story headlines which, while not necessarily meriting a full-length article, nevertheless warrant two or three paragraphs of comment, rather than merely a couple of lines.

(NB: (£) denotes article behind paywall.)

 

Brexit breakthrough: How Boris Johnson will force Brussels to agree brilliant trade dealDaily Express, 12th April

Well, maybe.  But even when Johnson is eventually discharged from hospital, he is likely to be hors de combat for at least a month in post-recovery convalescence after his attack of coronavirus. In his absence, his de facto stand-in Dominic Raab, albeit for understandable quasi-constitutional reasons, would probably be reluctant to adopt such a hard line with the Brussels negotiators, justified though it would be.

On the other hand, we’re only just approaching the peak of the coronavirus epidemic, so Johnson may well be back in the saddle by the time they resume in earnest with political involvement, although they wisely continue at negotiator level, despite cynical calls from Continuity-Remainers to call them off using COVID-19 as an excuse.

 

The UK has a winning hand: let’s not be bluffed out of playing itCapX, 9th April

The authors correctly make the point that, in contrast to the long-trailed Remainer mantra that ‘the City of London needs to be in the EU’s regulatory framework in order to prosper‘, the boot is now effectively on the other foot, exacerbated by the Eurozone crisis and Germany’s refusal to mutualise EU debt, in defiance of the logic of the Euro’s creation, of which Germany was such an enthusiastic advocate.

With the Brexit-extension lobby currently vocal, it remains a mystery why this advantage is apparently being neither leveraged nor even publicised in response.  That advantage would be maximised if the UK-EU talks were held in parallel with the UK-USA talks, but the latter have just officially been postponed indefinitely.

Clearly, the hiatus in leadership and diversion of Cabinet attention to COVID-19 is a factor in both being allowed to happen; but equally, one can’t discount the possibility of the malign influence of Cabinet Secretary Sit Mark ‘Huawei’ Sedwill.  In a reprise of the worst aspects of Theresa May’s disastrous premiership, Britain possesses a good hand of cards, but is simply refusing to play them. 

 

The coronavirus crisis could blow the EU apartThe Times (£), 9th April

The Eurozone crisis, long simmering on the back burner, is on the verge of boiling over, as Germany resolutely refuses to countenance the fiscal transfers to financially weaker regions of the Eurozone quasi-polity which the currency’s economic logic always demanded, but which political imperatives always precluded.

As author Iain Martin observes, Germany in particular wants for itself all the national, competitive, advantages of the one-size-fits-all Euro, but not the obligations, inherent in a multi-state currency bloc, to support its weaker members.  With the precarious Southern Europe economies, especially Italy, likely to go over the edge from the horrendous direct costs and lost output caused by their own COVID-19 outbreaks, the already dysfunctional European banking system, overhung with debt, might not be far behind.

Britain will not escape the economic fallout from a Eurozone collapse in any event, but the imminent prospect of one ought to put even farther beyond contemplation the idea of a Brexit extension which could see us on the hook for hundreds of billions in Euro bank-bailouts.

 

Italy’s Conte threatens to derail EU summit over CoronabondsPolitico Europe, 12th April

‘European solidarity’ has always seemed a combination of convenient myth for British Europhiles and comfort blanket for their Continental counterparts, but seldom has it seemed more incongruous. Notwithstanding the Eurozone’s latest purported rescue package, the divisions between the bloc’s Germanic/Scandinavian north and Latin south on the subject of so-called Coronabonds – with France as ever straddling the two – looks intractable.

With the attention of Brussels Eurocrats grabbed more and more by the developing crisis in, or even potential collapse of, the Eurozone, the EU can ill afford the luxury of a lengthy, intransigence-driven negotiation with a Britain prepared to walk away.

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Brexit-Watch: Saturday 04 April 2020

Note: longer version of article originally published at The Conservative Woman on Saturday 04 April 2020

A weekend update on some recent key Brexit-relevant story headlines, choosing five which, while not necessarily meriting a full-length article, nevertheless warrant two or three paragraphs of comment, rather than merely a couple of lines.

(NB: (£) denotes article behind paywall.)

 

A Brexit delay could last longer than you thinkSpectator Coffee House

Stephen Daisley summarises what are merely some of the latest instances of – purely coincidentally, obviously – predominantly if not entirely Europhile and anti-Brexit opinion attempting to exploit the current coronavirus outbreak ostensibly just to ‘delay’ Brexit.

However, their argument has one major flaw.  Much COVID-19 modelling predicts that the current outbreak will subside, but only to be succeeded by others of (hopefully) lesser magnitude, in which case the world could then be in periodic coronavirus mitigation mode for a decade.  On that basis, the delayers’ ‘only for as long as it takes for us to deal with the current health crisis‘ mantra is exposed as the sham which, considering its sources, it almost certainly is.

One further point needs making.  With global economic activity depressed anyway by COVID-19, the anti-Brexit lobby’s alarmist argument against leaving without a deal because of the alleged adverse economic impact becomes much weaker. Tory MP John Redwood has, rightly, made the point that the complaints being made about disruption to supply chains relating to exiting the EU on either a Free Trade Agreement or a WTO-reversion No-Deal are already being experienced many times over in response to the virus.

A delay must not, under any circumstances, be allowed to happen; both Johnson & Gove must continue to resist siren calls for an extension to the Transition period from Continuity-Remainers desperate to exploit COVID-19 as an excuse to stop Brexit happening at all.

 

Should the UK stay in Erasmus+? – Briefings for Britain

One of the more risibly desperate attempts at anti-Brexit propaganda, during both the EU Referendum campaign and its aftermath, was the claim that even voting to leave the EU signified Britain’s automatic disqualification from participation in its youth-exchange programme, which has long been open to nationals of non-EU countries.

The details, as distinct from the fact, of that participation, fall to be considered as part of post-Brexit Britain’s future relationship with the bloc, not as part of its withdrawal from it.  Despite the Department for Education’s provisional commitment to a continuation, albeit on condition that it remains in Britain’s interests, a combined BrexitFacts4EU and Campaign for an Independent Britain report finds that the scheme is not meeting most UK students’ needs. Our negotiators should therefore be careful not to make too many concessions in other more vital areas merely to secure continued UK participation.

 

Post-Brexit EU to lose 49 million of its population by 2020Global Britain

Obviously, the precise effects of such a population shift northwards and westwards depend on its demographics, but with the major recipients in the population change being countries with relatively more generous welfare systems, it does not seem unreasonable to expect calls for a greater degree of welfare budgets’ centralisation and pooling at European level to intensify.

As it nears the exit, Britain must ensure that any negotiations with the EU r-27 over future migration rights take account of the likely existence of higher-population countries on  Britain’s doorstep, and also that it both restricts and time-limits any ongoing contributions it might concede as the price of obtaining a trade deal.

 

European law will hold sway for years to come, say senior judgesTimes (£)

A misleading headline from The Times, in that the judges themselves made no mention of ‘for years to come‘, but did warn that the power of the European Court of Justice, as distinct from the UK Supreme Court, to rule over questions of EU law, even in disputes between British companies, would continue until Britain’s final exit, which in legal jurisdiction terms, might not be until after the end of Transition.

It does, however, emphasise the importance of Britain’s EU negotiators not conceding any extension of ECJ jurisdiction after the end of the Transition period, in order for Brexit to re-establish fully the sovereignty of Britain’s legal system. It also stresses, once again, the absolute necessity that Brexit should not be delayed, whether by the deployment of COVID-19 as a transparently specious excuse or for any other reason.

 

Brussels parliamentary group calls on UK to seek Brexit extension Financial Times (£)

An entirely predicable demand for a Brexit ‘delay’ from the ultra-Europhile European People’s Party grouping in EU Parliament – from which, remember, Tory former Prime Minister David Cameron was obliged by backbench and grassroots activist/membership pressure to withdraw Conservative Party MEPs – and equally predictably backed by what the FT coyly describes, without naming them, as ‘senior British government officials’.

With the Eurozone crisis, already serious enough anyway before the devastating impact of coronavirus on the stressed economies of the bloc’s weaker southern members, becoming more grave by the day, it is likely to become the near-exclusive focus of Eurocrats and a considerably greater priority than concluding Britain’s exit agreement. This is merely the latest in a line of transparent attempts by those, both on mainland Europe and in Britain, who for varying disingenuous reasons wish to see Britain’s exit from the EU not happen.  The EPP’s demand should be unceremoniously dismissed. 

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