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пятница, 7 июля 2017 г.

It looks like David Davis will ensure the Brexit delivered is exactly as Vote Leave campaigned for (sans the £350m for the NHS)



The FT are reporting this evening


Senior ministers have rejected calls by British business leaders for the UK to stay in the EU customs union and single market for a lengthy period after Brexit, raising fears of a bumpy transition to a new trading relationship with Europe.


The CBI employers body raised the stakes on Thursday by proposing that Britain stay inside the EU’s internal market and its trading bloc until a new trade deal between London and Brussels was put “in force” — a process which could take many years and even last beyond a 2022 election.


But Philip Hammond, the chancellor, said on Friday that any transitional deal would not involve Britain remaining a member of either the customs union or single market, even though the government would do all it could to minimise “the shock” to business.


At the same time, Brexit secretary David Davis, meeting chief executives and business groups at Chevening House in Kent, dismissed the idea of Britain enjoying a transition deal that would leave it temporarily like Norway, which is not an EU member but is inside its economic and trading blocs.


According to attendees, Mr Davis told business leaders there would be a political backlash if it looked like Britain had not really left the EU and was engaged in an open-ended transition that continued current economic arrangements.


TSE


вторник, 4 июля 2017 г.

The evening must read



‘Due to a terrible miscalculation of scale the entire battle fleet was accidentally swallowed by a small dog.’ – Douglas Adams


That quote from The Hitchhiker’s Guide to the Galaxy probably best sums up the mess Theresa May and the Tory party finds themselves in due to Mrs May’s calamitous decision to call an early election and run the worst general election campaign in living memory, this article gives a very good account what that means going forward.


From the FT article there was a lot that stood and I recommend reading the entire piece but here’s two selected highlights.


Mrs May only survived the humiliation of last month’s snap election because Conservatives have decided that the alternatives to an enfeebled leader are even worse. On June 9 party grandees trooped into Downing Street to tell the emotional prime minister that she had a duty to party and country to stay.


Most Conservative MPs fear that if Mrs May is ousted, the party would face a leadership contest that would once again split it over Europe, this time between those favouring a soft or hard Brexit. There is no obvious frontrunner, the eventual winner would have no direct mandate from the British people and they might inherit a party in a state of nervous disintegration.


There would be a clamour for another election, which the leftwing Labour leader Jeremy Corbyn could win. Although Mr Corbyn is no fan of the EU, the Brexit process would be thrown into chaos.


“There is a general mood of seriousness and a sense that if we screw this up, a Marxist government steps into the breach,” says one senior Conservative MP. Another says: “The person holding the party together is Jeremy Corbyn. The fear of Corbyn is greater than any nuance in the Brexit negotiation.”


And


In place of paranoia has come a remarkable reappraisal of what exactly Brexit should mean. “There wasn’t really any debate before,” admits one minister. The only problem is that it comes a bit late in the day: Britain voted to leave the EU more than a year ago and the clock is ticking down to an exit in March 2019. “It would be nice to know exactly what we want from Brexit,” confided one government insider.


No senior minister has yet directly challenged the central tenets of Mrs May’s “hard Brexit” strategy set out in her January Lancaster House speech, which called for Britain to leave the single market, customs union and the jurisdiction of the European Court. But the soft Brexiters are starting to chip away at the edifice.


Mr Hammond is pressing for a long transition during which Britain would retain close ties to the EU, including remaining in the customs union. The Treasury is challenging Liam Fox, international trade secretary, to prove that the deals he hopes to secure when Britain eventually leaves the customs union more than offset an expected loss of trade with the EU. Mr Hammond is vehemently opposed to Mrs May’s threat — or bluff — that Britain could walk away with no deal at all. 


Mr Davis, who is said by colleagues to be “more flexible than you think”, is exploring ways in which the ECJ might have a limited backstop role, allowing Britain to continue participating in European regulatory bodies, rather than recreating them at great expense at national level.


TSE


суббота, 1 июля 2017 г.

Everything is negotiable, how the election result may have improved Britain’s negotiating position in the Brexit talks


It wasn’t supposed to be like this.  Theresa May called the general election calling for a mandate for her Brexit vision.  In her own words:


“Our opponents believe because the government’s majority is so small, that our resolve will weaken and that they can force us to change course. They are wrong.  They underestimate our determination to get the job done and I am not prepared to let them endanger the security of millions of working people across the country. Because what they are doing jeopardises the work we must do to prepare for Brexit at home and it weakens the government’s negotiating position in Europe. 


If we do not hold a general election now their political game-playing will continue, and the negotiations with the European Union will reach their most difficult stage in the run-up to the next scheduled election. Division in Westminster will risk our ability to make a success of Brexit and it will cause damaging uncertainty and instability to the country. So we need a general election and we need one now, because we have at this moment a one-off chance to get this done while the European Union agrees its negotiating position and before the detailed talks begin.”


The Conservatives no longer have a small majority.  They no longer have a majority at all.  Britain has increased division at Westminster, the political game-playing will mushroom and all the while negotiations with the European Union are going to become more difficult.


Yet Theresa May’s entire pitch was wrong.  Perhaps that was one reason why she lost.  A small majority did not harm her ability to negotiate and a large majority would not have helped her, at least so far as the quality of the deal was concerned.  Having no majority may actually improve the deal that Britain secures.


How so?  Imagine that Theresa May had secured a majority of 200.  She would have utterly dominated the domestic political scene: half Boadicea, half Wonderwoman.  Dissent would have been futile.  The saboteurs would have been well and truly crushed.  From the EU’s viewpoint, that would have been an easy negotiation.  Once the bloody difficult woman had been squared, the deal would have been cast.  So all the EU had to do would be to make an offer that met their objectives and dare Theresa May to walk away from it.  She would have no cover for rejecting the offer, with all the serious disruption that would entail.  She would be making a huge call and the public would rightly treat it as her decision.  Whether or not Theresa May would actually accept the terms offered, the EU would expect her to do so.


Note that the UK is unable to adopt this tactic with the EU for the very good reason that there is no single decision-maker.  Michel Barnier, Jean-Claude Juncker, Angela Merkel, the European Parliament and the Walloon Parliament are just some of the cast of hundreds who will have their say.  The EU’s negotiators will reasonably point to the need to keep all of the decision-makers with their competing agendas on side.  In all likelihood, some of the decision-makers will be inclined to put a spoke in the wheel anyway, feeling that they have been paid insufficient regard to.


Indeed, this multiplicity of competing interests on the EU side is one major reason why the EU would have been pushing to offer Britain a minimally acceptable deal: it makes it all so much easier.  Why put your energies into cracking multiple nuts if you only need to crack one?


Now note the difference when Britain has a hung Parliament. Theresa May is not dominant even around her own Cabinet table.  Pluralism reigns.  Her government will need to keep on board a constantly-shifting coalition of interests inside her party and beyond.


And, most importantly, the EU’s negotiators will know that.  They cannot simply lay down a deal for Theresa May to sign up to because they know that she cannot simply sign any deal and get it through Parliament.  If they want a deal, they’re going to need to put a deal to the British negotiating side that the British Government will have a chance of getting through the House of Commons.


The EU’s institutional negotiating advantage that comes from its nature has been considerably reduced by the election result.  The two sides now have near-parity of incoherence.


This undoubtedly makes the negotiations much harder work for the British side: no one likes having to take account of the views of others.  But it potentially will make for a better deal for Britain (though not necessarily for the Conservative party).


There’s always a catch.  On this occasion, it’s obvious.  By narrowing the eye of the needle that the negotiators need to thread, the risk that they will fail is increased.  If both sides are having to square off lots of different interests among keenly self-important interest groups, the risk is greatly increased that a deal cannot be reached or that the deal agreed by negotiators is scuppered by someone who feels that they have been paid insufficient regard to – or simply someone creating devilment.  So, fingers crossed.


Alastair Meeks






четверг, 29 июня 2017 г.

Turns out the Queen’s Speech has caused more problems for Jeremy Corbyn than Theresa May















TSE