Following
the twists and turns of Brexit has often been a complex matter but in the last
few days, for I think the first time, I have really struggled to understand
what is going on and why. The idea
of an extended transition period was floated by Michel Barnier, apparently
as a concession to the UK. Which in a way it is, to the extent that originally
Britain had sought a longer transition; two years rather than the 21 months
envisaged in the phase 1 agreement. It got pared back to December 2020 in order
to fit in with the EU budget cycle.
Yet Barnier’s
suggestion was greeted by Theresa May as a new EU demand to which she might,
with concessions, accede. Meanwhile Brexiters reacted with fury, calling
it a plot to keep Britain locked into the EU (apparently unaware that the increasingly
predominant view in the EU is that the sooner it is rid of Brexiting Britain
the better) and remainers seemed unimpressed.
The argument
for such an extension appears to be that it would give more time for the future
trade terms to be agreed. This in turn would mean that the Irish border
backstop would never be needed, and there would be a smooth shift from
transition to those new terms. That, in itself, might not be enough to get a
deal done on the Withdrawal Agreement, if May sticks rigidly to the recent line
that writing in a Northern Ireland only scenario could never be acceptable. But,
if she moves on that, it might conceivably be enough to persuade MPs – apart from
the DUP, anyway – to agree to such a deal on the basis that it was entirely
hypothetical.
However, and
this is the really puzzling thing, it is just not clear why an extension would
make any difference. One issue is simply time: even with a 33 month transition
it seems extremely unlikely that a trade deal will be completed and ratified.
The other, more important, one is that it is inconceivable, at least on my understanding,
that any trade deal would avoid the border issue re-emerging. The only way that
could happen would be if the ultimate trade arrangement was for the whole of
the UK to remain in the single market and some form of customs union. Back to
Norway (+) which the government has ruled out, but which could, I suppose, come
back on to the table in the future, especially if the Political Declaration is
sufficiently vague.
Incomprehensibility is now the aim
The puzzle,
though, is solved by recognizing that the negotiations have now entered a phase
when what is proposed is not meant to
be comprehensible. The political imperative now is not to find something that
makes sense but to make a deal – any deal – that can get through. That is
common enough in diplomacy, and it is especially evident when there is a need
to accommodate massively divergent views. Indeed, the Irish peace process is a
good example of it, with many of the constructive ambiguities that enabled its
success being dependent on the fact of both Ireland and the UK are EU members,
hence the threat that Brexit poses for it.
That
comparison is a revealing one, because it suggests that the reason the Brexit
talks are now in the territory of such diplomacy is that they have become so
riven by conflict and irreconcilable positions that increased use of
incomprehensibility – to facilitate multiple readings – is necessary. The same
thing happened, albeit to a much lesser extent, with the phase 1 agreement.
That had a bit of ambiguity in it with the consequences we’ve seen when it got drafted
into legal text for the draft Withdrawal Agreement, which removed those
ambiguities. The price of getting the final Withdrawal Agreement deal done only
by use of much greater ambiguities would be that it would not settle anything
in a substantive way, with future interpretations and re-interpretations being
made by all sides.
The dangers of incomprehensibility
If so, I see
great dangers ahead. First, it will set up years of claim and counter-claim (in
what will, of course, be on-going negotiations between the EU and the UK on
future trade terms) about what exactly the parameters of those talks are and,
ultimately, when and how the backstop will come into play. Second, and
relatedly, it will means years in which British domestic politics continues to
be divided and entirely dominated by Brexit. Third, and related again, it will
mean years in which Britain’s global role and reputation are solely bound up
with the pursuit of a project which other countries see as, at best,
incomprehensible and at worst reckless.
Fourth, and perhaps
most importantly, it will lead to a gradual, slow-burn economic decline as more
and more businesses relocate more and more of their operations; and as
individuals, whether British or EU-27 national continue to re-locate
themselves, for both economic and cultural reasons. For it shouldn’t be
forgotten that in this scenario the possibility of a no deal cliff edge won’t
disappear, it will just be postponed. We will have avoided the massive bang of a
2019 no deal and replaced it with an economic depth charge slowly but surely
eroding investment, jobs, taxes and public services.
Cobbling
together some gloop of backstops and double backstops and potential transition
extensions is probably the worst of all worlds, pleasing neither leavers nor
remainers. Leavers will see no Brexit dividend, no resurgent Global Britain,
and far from taking back control will have abdicated it. Remainers will have
lost all hope of EU membership, at least in the short and medium terms.
An unsettled future
Far from the
referendum having ‘settled the European issue for a generation’ this will leave
it unsettled for a generation. A vote to leave always had that danger, but a
practically workable and politically consensual soft Brexit would have
minimised it. Instead, the government’s initial embrace of hard Brexit and the
subsequent backtracks in the face of its predictable and predicted
unworkability have created an intractable mess that dooms us to years of
political bitterness and economic limbo. And this, remember, is the scenario
even if a deal can be done that gets ratified by all the bodies that need to
ratify it.
In such
circumstances, it’s not surprising that both sides of the debate are polarising
in search of more clear-cut outcomes. That is both a condition for and a consequence of the drive for ambiguity and incomprehensibility. For Brexiters, it means ‘clean Brexit’
which seems to imply a kind of ‘soft no deal’ (i.e. no Withdrawal Agreement but
side deals on things like flying rights). For remainers it means a People’s
Vote in the hope of a decision to stay in the EU after all.
So I think that that is where we are at the end
of this week: Brexiters and remainers are in different ways trying to cut
through the Gordian Knot that has been created over the last two years, whilst
the British government and the EU, again in different ways, are trying to wrap
it over with new and even more fiendish knots. Meanwhile – to mix Greek myth
metaphors – the Sword of Damocles hangs over our heads by a thread.
"Best guy to follow on Brexit for intelligent analysis" Annette Dittert, ARD German TV. "Consistently outstanding analysis of Brexit" Jonathan Dimbleby. "The best writer on Brexit" Chris Lockwood, Europe Editor, The Economist. "A must-read for anyone following Brexit" David Allen Green, FT. "The doyen of Brexit commentators" Chris Johns, Irish Times. @chrisgrey.bsky.social & Twitter @chrisgreybrexit
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