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We remain in
a situation of complete limbo as to what the government plans to seek for
Brexit, possibly because of the forthcoming Supreme Court case but also,
presumably, because they have no agreed plans.
A chance photograph
of some notes, apparently from a briefing meeting, was seized on by the
media for what it might disclose about these plans, but I am not sure that any
of the
speculation was warranted by what it showed. Instead, it seemed only to
suggest an almost embarrassingly naïve and thin set of ideas. Very basic
options (EEA, Canada, ‘having our cake and eating it’) were noted, along with
the idea that services will be difficult to do a deal over because of ‘the
French’ (services are difficult to deal with full stop; the idea that this is
because of Gallic ill-will is banal). It seemed to be ‘Janet and John learn
about Brexit’, and if this really is the level at which discussions are
occurring within government then we are in serious trouble.
What is
becoming ever-more clear is the massive damage already being done, even before
we get to the point of triggering A50. The recent budget predicted
a £100bn fiscal black hole over the next five years as a result of Brexit.
This is not, of course, the full price tag of leaving the EU, just the effect
on the government’s budget and, moreover, it was a cautious estimate provided
by the independent Office for Budget Responsibility (OBR) – the reality may well be much worse.
Even this cautious
estimate brought forth howls of anger from Brexit
politicians and newspapers,
with the OBR viciously attacked. This is now the habitual mode of conduct of
the Brexiters. Unable to come up with any plan or any forecasts of their own,
they simply lash out at anyone who injects any kind of realism into the
situation. This is what happens when a protest movement founded on lies and
fantasies actually wins: they continue to be a protest movement but get angrier
and even more detached from reality.
Another
indication of that is the response of the Brexiters to the
refusal of the EU to agree a deal on the rights of existing (including British)
migrants within the EU. There is a
very good reason for that – it can only be agreed as part of the exit
negotiations, which cannot start until A50 is triggered. But for the Brexiters
it is just another occasion to proclaim victimhood at the hands of the EU, as
if the consequences of Brexit were something that had been forced upon them,
rather than something they had agitated for.
The
Rees-Mogg versus Carney mismatch is a microcosm of a much more serious problem.
For it cannot be said often enough or forcefully enough how dangerous the
current situation is. Just about every person who is competent to make a
judgment knows that Brexit will be a disaster – a disaster that is already
happening – and that a soft Brexit is the least-worst way of enacting the
letter of the Referendum decision. But there is no political mechanism to
enforce that judgment. The entire future of the UK is now being held to ransom
by a small group of Conservative MPs, such as Rees-Mogg, who are completely
detached from reality and who will not allow anything other than the hardest of
Brexits to occur. Meanwhile UKIP, under its new leader, is, as I predicted in a previous post advancing the even more insane
idea of leaving the EU without triggering A50 at all.
I have just
returned from France where, understandably, most political conversation is
concerned with the forthcoming Presidential election there. But there is also
plenty of interest in Brexit and the overwhelming sense is one of bemusement;
bemusement about the referendum decision itself, and about the UK government’s
lack of clarity about what it wants. But more than that an amazement that Britain,
which is seen in France, as in many other countries, as a bastion of pragmatism
and political stability should have become, as one person put it to me ‘completely
crazy’. It’s a truism that if you hear your country criticized when abroad you
instinctively defend it, whatever your own reservations may be. It is a mark of
how desperate the current situation is that I felt neither inclined nor able to
offer any defence.
A report in
today’s Observer suggests that the
EU will “force Britain into hard Brexit”. Under the headline, it is clear that
this is nonsense. What is being said is that if the UK does not seek soft
Brexit – meaning single market membership – then hard Brexit is the only
alternative. The idea, persistently floated by Brexiters and the British
government, that somehow the UK could be in the single market but exempt from
freedom of movement of people and from ECJ jurisdiction is nonsense. There is
nothing new in that, and it was explained repeatedly by EU leaders and remain
campaigners during the campaign.
The Observer is a pro-remain paper but,
predictably, its report is being taken
up by the Brexit press as if it were an outrageous piece of bullying by the
EU. That notion is likely to gain considerable traction in the coming months,
the narrative being that all would have been well with Brexit had it not been
for EU. It is a strange narrative, because just yesterday it was reported that a
group of Conservative MPs, including leading Leave campaigner Michael Gove,
have written to the Prime Minister urging her to a hard Brexit. So why
would they complain if the EU wants to give them what they want? It is a similar
breakdown in logic to that which leads them to be furious that, having
campaigned for the sovereignty of the British Parliament, it is an outrage that
the High Court has ruled that decisions must be made by ... the sovereign British
Parliament!
The idea
that the Brexiters have been betrayed when their unrealistic promises encounter
the reality of their victory is also evident in emerging claims that the
complexity of Brexit is a remainer plot. Gove, again, has been first in the
starting gate here, arguing that civil
servants were over-complicating the process and that but for that a “quickie
divorce” would be possible. There is an overwhelming consensus amongst all
those with any knowledge at all of the issues involved – the Institute for Government
being a prominent example - that this is not true.
The key
point here is that the core of the Brexit movement is a narrative of self-pitying
victimhood, in which Brexiters are the down-trodden victims of ‘the
establishment’ and ‘the elite’. Now that they have won the referendum and are
in a position to implement Brexit they find themselves completely unequipped to
deal with the realities of what it means and are casting about for ways to
return to their preferred ‘victim’ role.
With so much
happening – and not happening – around Brexit, it is hard to keep up with
developments and certainly beyond my ability to post about each and every one.
So in today’s post I will provide a round-up of some of the more interesting
and important articles, news items and opinion polls I have read in the last
few days.
Much
attention is focussing on the emerging realities and complexities of
undertaking Brexit, given added emphasis by the leaked
memo from consulting firm Deloitte about the lack of an exit plan and the
chaos within the civil service in seeking to develop one. Although dismissed by
the government, the memo seems consistent with The House of Commons Library’s briefing
on the “legal, constitutional and financial unknowns” of Brexit, published
last week.
In a sign
that the Labour Party are beginning to develop a potent line of attack against
the government, Jeremy Corbyn used today’s
PMQs to quiz the Prime Minister effectively on what its approach would be,
a line also pursued by the SNP leader in Westminster. Teresa May’s response got
no further than to say that she would “seek the best possible deal” for Britain.
One reason why this is a difficult line (or non-line) to hold is that her
ministers are far from shy in being more explicit than May is prepared to be.
Most notable this week was Foreign Secretary Boris
Johnson’s statement that the UK would “probably leave the customs union”
(although, apparently, also staying in the single market and having
restrictions on free movement of people).
In this
context a statement yesterday by Angela
Merkel that free movement may be negotiable was seized on as a sign of a significant
shift, but as
this New Statesman piece makes clear this was not a proposal for a special
deal for the UK, or an abandonment of the free movement principle; rather an
indication of some possible EU-wide changes around benefits eligibility. It is
not entirely insignificant, though. I continue to think that a soft Brexit on
this kind of basis could be fudged and, with skilful political leadership, sold
to the British people. Back on the KCL site, a version of this based on the
kind of association agreement that Ukraine has with the EU is mooted in an interesting
article by Andrew Duff.
Within all
this uncertainty, one ray of hope for those of us who view with alarm the loss
of our EU citizenship: a proposal has
been made to the European Parliament that citizens of member states leaving
the EU be eligible to apply for associate citizenship of the EU, allowing
continued free movement. How likely it is to come to anything I don’t know, but
it is interesting not least because I suspect that for many ‘remainers’ it
would do much to sweeten the Brexit pill, and could therefore make it easier
politically for the UK government to enact a hard Brexit. Interesting, too, but
also depressing to see the furious
reaction to this proposal from Brexiters who decided that it meant that
only those who voted ‘remain’ would have access to this, were it to happen.
Interesting, because why should those who want nothing to do with the EU
complain about being excluded from the rights associated with being in the EU?
Depressing because of course the proposal does not discriminate (and would have
no way of discriminating) between leave and remain voters: even in their moment
of supposed triumph, Brexiters continue to lie. Oxford Dictionaries have today
announced their word of the year: it is “post-truth”.
At the High
Court case, both sides accepted as common ground that, once triggered, Article
50 was irreversible. This was very significant, because if that was so then,
the High Court ruled, it would inevitably lead to the repeal of the 1972
European Communities Act. Since only parliament can revoke that which it has
done, then only parliament could authorise that which would inevitably lead to
that outcome. It is now being reported that the government is considering not
accepting this is as common ground, and instead
arguing that the Article 50 process is reversible, and that it would
subsequently be possible not to go through with leaving the EU. If so, this
would undercut one of the main reasons for the High Court ruling and might
allow the government to win its appeal.
If this is
indeed what the government end up arguing, it will have several consequences.
First and foremost, it makes it likely that the Supreme Court will seek
advice from the European Court of Justice (ECJ), not to make a judgment
about this case (the ECJ has no jurisdiction to do so) but about whether on a
point of EU Law Article 50 is or is not reversible. The Supreme Court could ask
the ECJ this question even if both parties still accepted it as common ground
that A50 was irreversible (as could the High Court have done, had it wished).
But it becomes much more likely that they will do so is it is not accepted as
common ground (although it is in their power to take their own view on
reversibility that might lead to subsequent problems and even legal action if
it turned out not to be true once A50 was invoked).
If the
Supreme Court does ask the ECJ for advice it will certainly lead to outrage
from Brexiters, who will regard it as interference in UK affairs (even though,
as noted, it would not be an ECJ ruling, just clarification of the EU process
which, after all, has to be followed if the Brexiters wish to leave the EU). It
would also make it highly unlikely that the government’s timetable for
triggering A50 by the end of March 2017 would be possible, because the
ECJ would take some time to give its advice and until it did the Supreme Court
could not give its ruling. This in turn would make it unlikely that the A50
process would be completed before the next scheduled General Election or before
the next European Parliamentary elections.
If, after
all this, the government won its appeal on these grounds, then it would have a
big impact upon the politics that would follow. If they had won on the grounds
of the reversibility of the A50 process, then it would make viable the
proposals from LibDem and other parliamentarians for a second referendum on
the terms of exit. At the moment, as I
have argued in another post, this idea makes no sense because if A50 is not
reversible then what would be the alternative on the ballot paper to accepting
whatever the negotiated exit terms were? But if it has been established that
A50 is reversible, then the question could be to accept those exit terms or to
simply stay in the EU.
There is
good logic to the idea of a second referendum in that form, because whilst the
June vote was to leave the EU, it was not a vote for the terms of leaving. A recent
opinion poll shows that only 33% of voters would vote to leave the EU on
any terms; for the others, the issue would be what the terms on offer were.
Personally, I am not sure whether such a referendum would be wise (the
experience of the last one does not suggest that the campaign would address the
real issues) and a parliamentary vote might be preferable. However, the latter
course would also carry grave risks.
At all
events, if the government do proceed in this way at the Supreme Court and if
they win their appeal on that basis it will open up many new issues and potential
delays in, if not the scuppering of, Brexit. There are so many ironies here. It
is an irony that Brexiters, who asserted the centrality or parliamentary
sovereignty as a key reason to leave the EU, should even be trying to get legal
permission to circumvent it. It will be doubly ironic if in order to achieve this
they open up the possibility that, even if they get to trigger A50, they might
end up not proceeding all the way to the exit door. Finally, it may be noted
that, even if none of this happens, it is becoming less and less clear where
that exit door is: it is beginning
to be mooted that the UK will need to seek an interim deal after the end of
the two year A50 process in order to avoid the chaos that would ensue from the
fact that this time period will not be sufficient to complete the negotiations.
There are
obviously many connections between Trump’s victory and the Brexit vote, some
of which I have already written about and which I will not discuss here.
Instead, I want to outline some preliminary thoughts about how the result might
impact on Brexit. That is difficult, because Trump is an
unpredictable figure, and little credence can be attached to his various
statements.
One
immediate issue may be the sterling-dollar exchange rate, although so far it
seems as if any flight from the dollar is affecting the yen more than the
pound, which recorded only a slight uptick today. This actually reflects the
ongoing bad news of Brexit: sterling
is not seen as a ‘safe haven’ currency any more. Still, the coming weeks
may see some gains for the pound against the dollar and that would have some
impact on post-Brexit inflation, especially as oil is priced in dollars.
At the same
time, we can expect deteriorating relations between the US and the EU, both as
regards TTIP and more widely. The UK government might think that this could re-ignite
the ‘special relationship’, although there are significant foreign policy
differences over Syria, Iran and, especially, Russia. Indeed, the most
significant issue is likely to be NATO and its response to Russia. Trump has
indicated a
lack of enthusiasm for NATO and especially for members who do not spend 2%
of GDP on defence. Key here are the
Baltic States, where only Estonia meets the 2% criteria.
There is
some complex and very dangerous geo-political territory here. It is not
inconceivable that Trump’s election will embolden Russian
military incursions into Ukraine and soft
power incursions into the Balkans. It’s no accident that the Russian
Parliament applauded the result. The nightmare scenario is military action
in the Baltic States (or, if not military, then political and economic). Brexit
exacerbates these dangers because it also contributes to the weakening of the
US-EU-NATO nexus and, more generally, the post-war international order. But
this also creates the possibility of an international crisis so severe that the
UK government might seek (more or less willingly) to defer, or even abandon,
Brexit. That, of course, would be an extremely dangerous situation and any ‘gain’
as regards Brexit would be more than offset by the calamity it would involve.
So it is not that I am hoping for such a situation, just saying that because
Trump’s election throws the geo-political chips in the air, the way that they
settle may have an impact on Brexit.
On a lighter
note, the report that Nigel
Farage might be appointed by Trump as the US Ambassador to the EU was, I
think, a joke (one can only hope so; though in this strange world who can say).
That is about the only joke I can see in the present situation. With the UK
and, now, the US having embarked on an unpredictable course of national
populism – and the possibility of other
countries doing the same – both those countries and the free world have
entered a period of confusion and danger unprecedented in my lifetime.
When Britain
voted to leave the EU I thought it was a catastrophe. I still do, but things
are turning out even worse than I feared, to the point that I think we are now
entering a very dangerous situation.
One might
have thought that with the vote having been very close, and won on the basis of
claims, such as the £350M a week for the NHS, that were disowned within hours
of the result, that an apparently pragmatist politician like Theresa May would
have sought to find a common ground way forward. That would have meant,
perhaps, a pause to look at options, then a relatively soft Brexit plan that
could be just about acceptable to elements of both remain and leave. Instead,
she opted to at least signal a hard Brexit, and poured scorn on anyone wanting
to question that as trying to undermine democracy.
It may be
that May thought that, having been a (lukewarm) remainer, she had to do this in
order to run her party, and that by coming out hard on Brexit she could hold
that party together. If so, she has made the same miscalculation that David Cameron
made: her Eurosceptic MPs will always ask for more, whatever they are given. So
she has implied that she wants to leave the single market and they have pushed
her to leave the customs union; said she wants to invoke Article 50 and they
have pushed her to unilaterally abolish the 1972 European Communities Act. As
with the Referendum itself, attempts to manage the Tory Party’s extremists are
dragging the whole country towards their extreme positions.
It is
crucial to recall that the Leave campaign never specified a form that leaving
would take. Some wanted a Norway model (meaning European Economic Area
membership), some a Switzerland model (meaning EFTA but not EEA), some a Canada
model (meaning an FTA with the EU), some a Turkey model (meaning outside the
single market but inside the customs union), some a WTO model, some an Albanian
model, and some a Liechtenstein model! So the vote to leave the EU was never a
vote for any particular alternative.
Yet the government, and the Brexiters, are now insisting that it gave a mandate
for some kind of hard Brexit – though even the form of that they cannot agree
on (Turkey, Albania, Canada, WTO are still in the frame; Norway, Switzerland
and Liechtenstein apparently not).
All of that
is chaotic, and highly damaging to the UK economy, as can be read from the
value of the pound that falls whenever a hard Brexit looks more likely and
rises when a soft Brexit seems more likely. What is not just chaotic but
dangerous is the populist rhetoric around this. Given that the Leave campaign
chose not to define what leave meant, it was inevitable that this would have to
be decided by parliament. May tried to avoid this, but the High Court judgment
confirming that it must be so led to perhaps the single most disgusting
headline in British newspaper history: the Daily Mail’s ‘Enemies of the People’
(the other candidate for the title being the Mail’s ‘Hurrah for the Blackshirts’
support for the British Union of Fascists in 1934).
It is
important to understand the resonance of the term ‘Enemies of the People’. It
was used in Nazi Germany (Volksverräter)
and the Soviet Union (vrag naroda),
and so to see it used in a British newspaper is truly shocking. It cannot be
dismissed, as some commentators have tried to, as being just the same as when
papers criticise what they see as over-lenient criminal sentences. It is not an
attack on the judgement, but on the institution of law. And what provoked it
was not – as might be thought – a ruling that negated the Referendum vote, but
one that simply upheld the longstanding principle of parliamentary sovereignty;
the principle that Brexiters made central to the Leave campaign. So we now have a situation where
a narrow vote to leave the EU on terms unspecified is being translated into
some mythical ‘will of the people’ for hard Brexit. We know that only 37% of
the electorate voted to leave the EU, and we know that they did so for all
sorts of reasons, and we know that on current opinion polls they would not do
so now. There is no ‘will of the people’ for hard Brexit; there may not even be
a will for Brexit at all. But that is
not the worst of it. Nigel Farage, the ‘interim’ leader of UKIP is
now implicitly condoning, if not encouraging, street violence if his
supporters don’t get a hard Brexit. We all, whether remainers or leavers, have
to stand up now and condemn this. The referendum did not suspend the
constitution or the rule of law. It does not give a licence to attack judges;
it does not give a licence to threaten to gang rape people we disagree with; it
does not give a licence to spit on schoolchildren; it does not give a licence
to beat up and murder immigrants. I know very well that almost no one who voted
to leave the EU condones any of these things. But they are being done in your
name.
Whether or
not we are in the EU is an important question, about which there are strong
feelings on both sides. I have strong feelings about it. But we must not rip up
our civility, our constitution or our law in the process. Important as it is,
membership or otherwise of the EU is not that
important. Let’s all take a deep breath.
With the
High Court ruling (if upheld) having made it clear that parliamentary approval
is needed to trigger Article 50, attention is now likely to shift to the
possibility that there are other routes to leaving the EU. A pervasive meme
amongst Brexiters has been that the UK could simply shortcut A50 and
unilaterally repeal the 1972 European Communities Act. This idea has been
adopted by UKIP leadership candidate Suzanne Evans, who
recently said:
“Article 50 is not the way to
go. That is an EU construct. The best way to do it in my view is to repeal the
1972 European Communities Act as soon as possible” This course of action has
also been recommended by long-time Tory Eurosceptic John Redwood.
Whilst this option was not
explicitly considered by the High Court (which considered the repeal of the 1972
Act at the end of the Lisbon A50 process, rather than before and instead of that
process), its ruling directly impinges upon it in that only parliament could
repeal the 1972 Act. But would it, in any case, be a good idea? The EU Law
expert Professor
Steve Peers explains that:
“[P]olitically and economically speaking, this
option is insane. It would leave many practical details of withdrawing from the
EU unresolved, such as payments of EU funds to UK recipients. Even if the UK
could revert its membership of the EEA, that would only govern the trade
arrangements with the EU, not issues outside the scope of the EEA. For
instance, it would immediately end the UK’s involvement in the European Arrest
Warrant (EAW). Unless we had negotiated a transitional and/or replacement
arrangement – which is obviously the point of having the two-year period set
out in Article 50 – defence lawyers would argue that any EAWs which the UK had
issued to other Member States, and any EAWs issued by other Member States which
the UK was seeking to execute, were invalid. That would mean that no fugitives
could be arrested or detained on the basis of those invalid EAWs, and those
already detained would have to be released. More broadly, such a ‘unilateral
declaration of independence’ would destroy the UK’s credibility as a
negotiating partner with the remaining EU, and indeed with anyone else, given
the clear contempt that it would display for the legal rules which the UK had
previously accepted. It would be a long time before the UK could plausibly
claim again that it had a record of ‘fair play’ in international negotiations.” The impetus
to ‘just do it’ will doubtless resonate with many Leave voters – I recently heard
a voxpop where someone thought that we had already left the EU - but as with so
much in the current situation the complex realities don’t fit with the populist
simplicities.
Yesterday’s High
Court ruling is the biggest event since the Referendum, and opens up a huge
and complicated set of issues and possibilities. In brief, the ruling is that
it would not be constitutional for the government to invoke Article 50 without
the consent of parliament*, a ruling consistent with centuries of precedent
within Britain’s ‘unwritten constitution’. In principle this means that
parliament could refuse to give its consent – and the majority of MPs wanted to
remain in the EU – but in practice this is highly unlikely given the Referendum
result. Remainer MPs in constituencies which voted leave will be wary of
defying their electors; although the same could be true of Brexiter MPs in constituencies
that voted leave (the Richmond
by-election may show this). And with the
latest opinion poll showing a narrow preference to stay in the EU, perhaps
sentiment is shifting amongst the electorate anyway.
However what
it is more likely to mean that MPs have a chance to shape what form Brexit will
take, with questions of hard or soft Brexit being at the fore. That will cut
both ways, in that hard Brexiters will have the opportunity to seek to bind the
government to the very hardest form of Brexit (e.g. no attempts at even sectoral
access to the single market, exit from the customs union) quite as much as Remainers
and soft Brexiters will have the opportunity to seek to ensure single market
membership or even – most obviously from SNP MPs – to seek to remain in the EU.
It will become crucial for Labour to develop a coherent position, which they
have so far failed to do. And, whatever happens in the Commons, the House
of Lords, which has an anti-Brexit majority, will also be in a position to
influence Brexit.
Of course
there are other possibilities, too. The government’s appeal
to the Supreme Court may result in the High Court’s ruling being
overturned. Then we are back to the status
quo ante, although in a fast moving situation there may be no such thing as
that. Or (perhaps especially if the appeal fails) there may be a General
Election, the results of which will be very unpredictable. The Conservatives
would have to spell out what Brexit meant, if they were to seek a mandate
through the election for that stance, and that would expose the significant
rifts within the party. UKIP might become a significant force (and what’s the
betting that Nigel
Farage decides, yet again, to stay on as its leader?). And the LibDems
might be able to capitalise on the remainer vote to gain what could be a
decisive influence in the parliament that would follow. At all events, it seems
increasingly unlikely that the government will be able to continue to try to
define what Brexit means without telling the public what they have in mind.
The reaction
of Brexiters to the ruling has been truly hysterical, with it being
described as ‘betrayal’, the ‘death of democracy’ and “an
attempted coup”, and the person who brought the action has been subjected
to death and rape threats. The Daily
Mail, quite disgustingly even by its standards, described the High Court
judges as “enemies
of the people”. It is deeply unattractive, to say the least, and shows how
even in victory the Brexiters glory in a victim mentality. But it is also ironic,
since the cornerstone of the Leave campaign was to restore ‘sovereignty’ to the
British parliament and judiciary. So it is extraordinary that the proposition
that parliament should make decisions is seen as an affront to democracy; and
dangerous populism to posit that 52% of those who voted – thus, 37% of the
electorate – as ‘the will of the people’ and exempt from the rule of law or the
workings of the constitution.
But of
course what all this anger really derives from is the complete failure of those
who want to leave the EU to specify either what they want as an alternative or
to plan the process for exit. On the former, the refusal, in particular, to
agree on whether voting leave meant voting to leave the single market or not is
what has opened up the whole soft versus hard Brexit debate. On the latter,
both the Leave campaign and May’s government have shown themselves to have no
grasp at all of either constitutional law or political realities by trying
to arrogate to themselves decisions about what form Brexit will take.
The UK is an old and
complex democracy, whereas referenda are unsubtle and, within the UK, very
recent political instruments. Whilst Brexiters want to claim that the narrow
vote of June 23 is some unanswerable and inviolable democratic truth, they may
be about to find that – as with so much else that they believe – reality is not
so straightforward. That
seems to be coming true. It
is very far from clear where the High Court ruling will take us. What is clear
is that it has thrown numerous chips up into the air. Where they will land is
impossible to predict. Political and legal chaos can be added to the growing price
tag of the Referendum vote.
*The full
ruling is long and very technical, but the core issues as I (a non-lawyer)
understand them are as follows: leaving the EU would entail the repeal of the
1972 European Communities Act, a matter which would affect UK law and can
therefore only be decided by Parliament, not by ‘Royal Prerogative’ (i.e.
executive action on behalf of the Crown). The invocation of Lisbon Article 50
requires that it be triggered in line with the constitutional requirements of
the member state, and once invoked it cannot be rescinded. Therefore, to invoke
the A50 constitutionally requires the assent of Parliament because its
inevitable consequence would be the repeal of the 1972 Act.