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Thursday, 19 October 2023

Book review: Realism or optimism?

This week’s post, which is a day earlier than usual, is the latest in a series of occasional reviews of Brexit-related books, which can be found via the ‘Book reviews’ tag.
 
Foster, Peter (2023) What Went Wrong with Brexit and What We Can Do About It. Edinburgh: Canongate Books. ISBN 978-1-80530-125-7 (Hardback). 178 pages. £14.99

I don’t think that, in general, Brexit has been very well-served by British journalists. Political journalists, especially, struggled to capture the way that Brexit grew out of, and brought with it, a very different kind of politics from the traditional Westminster ‘game’. Perhaps even more, they struggled with the politics of the UK-EU negotiations, reflecting the pre-existing lack of British interest in the politics of the EU which was arguably a contributory factor, if minor, to why Brexit happened at all. Beyond that, very few journalists seemed able to engage with the deep technical complexities of Brexit, something which contributed to enabling Brexiter politicians to escape media scrutiny.

Indeed, at the height of the Brexit process, between, say, the triggering of Article 50 and the UK’s formal departure from the EU in 2020, I often found non-UK journalists more helpful in understanding what was going on. Tony Connelly, RTE’s Europe Editor, was undoubtedly the foremost of these, but there were others, including Annette Dittert of Germany’s ARD. Of course, there were also some fantastic UK journalists. Faisal Islam, when Political Editor of Sky News (though less so since he became the BBC’s Economics Editor); Ian Dunt, then the Editor of politics.co.uk; and Lisa O’Carroll, at that time the Guardian’s Brexit correspondent, all come to mind, but again there are others.

Peter Foster was and is undoubtedly one them, and I’ve referred to his work countless times on this blog (to the extent that he even has his own tag, though it by no means captures all the references). What he shares with all of those just mentioned is a capacity to understand the ‘big picture’ of Brexit whilst also engaging with the often arcane, technical details. It’s a quality he showed as the Telegraph’s Europe Editor, when, if I recall correctly, his focus was mainly on the Brexit negotiations, and, since then, as Public Policy Editor of the Financial Times. In fact, especially since taking on the latter role, I would say he is the foremost journalist, whether in the UK or elsewhere, in covering the detail of what Brexit means for, especially, businesses, supply chains, and regulation.

Readable, forensic, and realistic analysis

It is these things which are the main focus of the book (which of course means that there are other components of Brexit which aren’t within its ambit), and it provides a superb and authoritative account of them, made accessible by examples and vignettes. This readability of what might otherwise be rather dry material is also aided by a writing style which, and I imagine this is no easy task, transfers well from newspaper columns to the rather different demands of a book-length treatment.

Foster’s explanation of what Brexit has meant for businesses is forensic, if not brutal. Over and over again, he dissects how Brexiters misled themselves and others in what they were doing. Examples include David Frost’s disastrous, “never seriously substantiated” dismissal of the significance of non-tariff barriers to trade (p. 17), the resurrection of freeports which in economic terms “were destined to be empty vessels” (p. 48), the Brexiters’ “red tape fallacy” (pp. 29-38) that amongst other things led to the UKCA debacle (p. 71), and the “magical construct” of an invisible border between Ireland and Northern Ireland (p. 104).

The book also contains a calmly withering overview of post-Brexit independent trade policy (pp. 54-64) and a careful account of what Brexit has meant for immigration (pp. 81-89). Unsurprisingly, at least to those who have read his FT columns, there are also superbly clear explanations of what Brexit has meant for particular sectors, such as chemicals (pp. 73-75), auto (pp. 75-79) and the travel industry (pp. 94-97).

Underneath all these individual issues lies the “magical thinking and dogma” (p. 41) which has consumed the British political and policy-making process since 2016. The story of how that happened is concisely but crisply narrated in chapter three (pp. 39-53).

All of this forms part one of the book, ‘What went wrong with Brexit’, which accounts for about two-thirds of the text. The briefer second part is concerned with ‘What to do about it’. Here, the discussion is equally assured and well-informed, and, in my opinion, realistic in focusing mainly on what can be done to improve the tone of UK-EU relations and the terms of the Trade and Cooperation Agreement. He also suggests that, especially if a better tone is achieved, the UK could re-apply to rejoin the Lugano Convention, having previously been refused, facilitating the resolution of international legal disputes for businesses. Other ideas include seeking to join the Pan-Euro-Mediterranean (PEM) Convention to harmonize Rules of Origin.

Many of these proposals have been made by bodies such as the UK Trade and Business Commission and the Tony Blair Institute, but are helpfully brought together and clearly set out here. What Foster advocates also looks likely to be (the maximalist version of) Labour policy if they get into power, although he doesn’t put it in these terms, and he spells it out in far more detail and with far more clarity than they do.

Again, in my view, rightly, Foster suggests that, taken as a whole, the value of such an approach is a bit greater than some critics, both pro- and anti-Brexit, allow. But he isn’t starry-eyed about it, being far more honest than Labour politicians are (at least openly) about the “limited overall economic impact” (p. 168) these measures would have. Beyond them, he also advocates (pp. 168-175) more sustained and strategic policy-making, rather than the post-Brexit frenzy of half-delivered and often half-baked ideas, especially about how to re-energize business investment.

Misplaced optimism?

Clear-sighted as all this is, and constructive as its suggestions are, there’s a degree of optimism about it that may be misplaced. Foster’s guiding theme is that “it’s time to think again about Brexit by taking an approach based on facts, not fantasy and fallacy” (p.8). That leads to his overall conclusion that “post-Brexit Britain, quite literally, cannot afford more of the wishful thinking that has blighted UK policy-making since the 2016 referendum” (p.168) and “what is now needed is a realistic, sober vision for what Britain should look like in 2050 – allied to fact-based strategies for how to get there” (p. 175).

Again, I think Foster is completely right, but I fear he underestimates the extent to which Brexit has made that all but impossible. As I said in my own Brexit book, it has created a situation of it often seeming as if there are ‘Brexiter truths’ and ‘Remainer truths’. Ultimately this may, and hopefully will, change, but for now it means that “an approach based on facts” – which Foster’s certainly is – will too readily be dismissed, for all his attempts at even-handedness, as the work of a ‘remainer’, or perhaps even as being typical of the ‘globalist’ Financial Times. How can such an approach succeed when even the most basic of facts is so bitterly contested?

That is well-illustrated  by Daniel Hannan’s spiteful and dismissive review in the Telegraph (£), which I refer to, reluctantly, simply because it is illustrative; it has no other value. This describes the book as “myopic”, “pro EU”, and an example of “Brexit Derangement Syndrome” that will only interest remainers. In a related way, Foster rightly calls for “ending the politics of betrayal” (pp. 121-127) as part of the way forward but, as I’ve often argued on this blog, though it is far more eloquently discussed by the Irish journalist and author Fintan O’Toole, that politics is inseparable from Brexit.

Within the context of such tribalism and its associated betrayalism, not only are facts disputed they also get distorted. For example, on one of the few occasions Hannan touches on the substance of Foster’s book, it is to criticize him for not seeing that the UK’s continued use of the CE mark (rather than insisting it be replaced by the UKCA mark) should be regarded as a welcome possible “step towards mutual recognition”. But, for all that it may seem as if there are Brexiter truths and Remainer truths, on these kinds of issues some things are true and some are false. And Hannan’s claim is simply false, for the obvious reason that there is no prospect, and not even any proposal or suggestion, that the EU will start to recognize the UKCA mark reciprocally with the UK’s recognition of the EU mark.

This is only a tiny example, but it is misunderstanding, misrepresenting or ignoring the kinds of ‘nuts and bolts’ issues that Foster specializes in which allows Brexiters to continue to resist – indeed, to viciously disparage – a “realistic, sober vision … allied to fact-based strategies”. That is, it enables them both to ignore reality and to construct an alternative reality.

Catching or contributing to the tide of pragmatism?

Now perhaps the tide is turning, and the influence of Brexiter ideologues like Hannan is diminishing. That seems possible given Sunak’s at least sporadically more pragmatic approach to the EU compared to his predecessors (though as one was a pathological liar and the other plain bonkers, that’s not a high bar), and even more likely if Starmer’s Labour come to power.

Foster clearly believes that this, and growing public disaffection with Brexit, means “that space is now emerging for a re-think” (p. 4). If so, his book may have caught the tide of the times. I hope so. But, as he frequently and strongly emphasizes, “time is of the essence” (p. 8), and it must be an open question whether, especially with the pro-Brexit media denouncing every step towards sense as betrayal, any UK government can move fast and far enough to deliver even the still relatively cautious prospectus the book advocates.

On the other hand, one danger which a Labour government looks likely to face is that, along with Brexiter denunciations, it will also be attacked by remainers and rejoiners as being insufficient to the magnitude of the task. The positive reading of that is it will push Labour towards Foster’s more maximalist version of its presently disclosed policy. The negative reading is that, squeezed between those who say it is too much and those who say it is too little, the space for pragmatism will remain vanishingly small.

None of these observations detracts from that fact that this is an excellent book which should be read by anyone who wants to understand the intricacies – and idiocies - of what Brexit has meant for trade, businesses, supply chains and regulation, and what could be done to address some of them. Indeed, although some of its prescriptions have been made by various think-tanks and committees, this is perhaps the only book providing a serious and sustained analysis of what Britain might now, realistically, do about Brexit. So, even if the tide has not yet turned in a more pragmatic direction, it could help it to do so.

As such, I hope it is widely read, not least by policy-makers and by commentators who, if they shared Foster’s depth of knowledge and acuity of analysis, could do so much to re-shape the tone and content of the debate about Britain’s post-Brexit future.

My only gripe, but it is quite a big one, is with the publisher rather than the author (as I assume it is an issue of house style): the book gives no sources or references and, even more surprisingly, and very irritatingly, does not even have an index.

17 comments:

  1. Surely nothing went “wrong” Brexit? It went exactly as the brexiters wished it, a hard brexit and a thin trade deal. That doesn’t detract from the fact it’s a disaster, but that was predicted well before it happened.

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    1. Seconded. And I think that this is an important point because it suggests that Brexit could have been done "right" - which is something that many "Leavers" still seem to believe. This belief will be a big problem for any attempts to get closer to the EU.

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  2. Agree...nothing went wrong. While Brexit is a disaster for the "little people," it's been a boon for some, e.g. investors/governors of water utilities (no pesky environmental regs to worry about), finance executives who befriended Kwasi Kwarteng while he was creating the budget, etc. I look forward to reading Foster's work to see how he explains commercial sectors' failure to speak up about the implications of Brexit before the vote.

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    1. I doubt if it's benefited more than a few hundred people - and even then fleetingly. The reason larger quoted businesses couldn't speak up is that many were legitimately having to invest shareholder funds in various ways to try and cope with the inevitable effects of Brexit. For example, setting up duplicate warehouse or manufacturing facilities on the continent. Having undertaken this investment, they could hardly then turn round and publicly criticise Brexit at the same time.

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  3. "I don’t think that, in general, Brexit has been very well-served by British journalists."

    In December 2017 I attended a talk by Stefaan Dr Rynck (Barnier's deputy) at Chatham House. His main point was that the rules of the EU had not been imposed on the UK: the UK had accepted the rules of the EU and had been the architect of many of the rules of the EU (especially in the 1980s) so the UK should understand that if it wants to opt out of the rules it cannot have the benefits that it had when it followed the rules. UK/EU negotiations are not about the UK getting opt-outs from the rules while still getting the benefits of membership: they are about the mechanisms for a new UK/EU relationship in which the UK has opted out of both the rules and the benefits of membership.

    My impression (from the audience reactions and questions) was that about half the audience understood that point very well and the other half just didn't get it. They had accepted the frame of reference that the rules of the EU had been imposed on the UK. Many of them were journalists whose questions were along the lines "Will you let the UK have X?" to which the answer was always something like "As I said in my introduction, having those benefits depends on being in the institutions that provide those benefits and following their rules."

    Most journalists (and media) accepted the Euro-skeptics framing that the UK was oppressed by rules about the efficiency of electric toasters that had been imposed by an over-powerful EU. The problem is not that the media didn't understand the technicalities; they didn't understand (or want to understand) the EU as an association of states that the UK had helped to develop. Even the Guardian seemed to think that the UK could remain a member of the EU and opt out of Freedom of Movement.

    Journalists did treat the referendum campaign as some kind of political game between two teams. It was, however, an even more delusional game than most election campaigns and promised things that were never going to be possible.

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    1. Indeed,

      The very same Stefaan de Rynck was also a guest speaker in an event organized by the Institute for Governance in 2018-19, where he told the Brits exactly what was going to happen with the negotiations -- and the outcomes possible within the UK's red lines.

      His message was met with squirms, and whataboutery, but everything the man said came to pass.

      This is simply an indication of how completely clueless, and blinded the UK's commentariat were about the realities awaiting.

      One of the funniest stuff I ever read was Rafael Behr in the Guardian, late 2020, talking about the need for Macron and Johnson getting together -- as the sole nuclear armed countries in Brexit talks -- and they'll hash up something that the rest of EU is just going to have to agree on.

      I mean the delusions were epic even on the saner side of the UK's commentariat.

      Peter Foster has gotten his game on well after Brexit became reality, not during the long years of negotiations.

      I guess a part of the lameness of the UK journalists was/is the need to have, and keep their jobs, but it has been quite a dispiriting ride.

      The reason this blog is so valuable is that is has chronicled the UK's delusions of grandeur, its (political) mismanagement, and its elites, and media peoples lies for future historians to have a field day with.

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    2. "The delusions were epic even on the saner side of the UK's commentariat."

      I tend to agree. In his column last week, Behr referred to his contacts inside politics. My view is that he was and is too close to those contacts and became part of the same bubble that shares those delusions.

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  4. Time is indeed of the essence - and we can't wait until 2050. Recent economic news of a "retail recession" combined with stubborn inflation should set alarm bells ringing for a retail/financial based economy - and hasten the urgent return to reality based thinking and policy as exemplified by Foster.
    On the subject of Brexit journalism, Simon Jenkins and Peter Oborne are to be commended for having the courage to admit their error in supporting Leave and now actively calling out the insanity of Brexit. Politicians are unable to publicly admit being wrong - it's easier to just go down with the ship or get out completely - as so many Tory MPs are now doing.

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  5. Thank you for your most excellent writing, Professor Grey, I have been following your take on Brexit since you began, and it has consistently been the one read I respect, learn from and enjoy. Personally, my life was completely changed by Brexit, and not for the good, but as someone living in the EU with a British passport for some time now, I don't see any willingness on the behalf of the EU, or the people who I meet and talk with on my travels, to engage with the UK for quite a considerable time after the way the UK left the EU and continues to behave politically in this regard. In terms of your earlier posts questioning the shift towards the right of British politics, well it's similar to many countries in the world at the moment, but with a considerable difference within the UK which you touched on in this post today, namely the disproportional power that the UK press has over shaping public opinion. I would venture to suggest that until this is seen to change and that change is seen to have effect, while the EU will be pragmatic as long as it serves them, in the long term, the UK has to change significantly in this regard- for the better of the UK. I would remind you that fascism isn't an ideology, rather it is a process, one that can use and abuse whatever ideology is expedient to achieve its goals (see Ur fascism by Umberto Eco). I left the UK over twenty years ago sensing the political direction of travel was towards a fascist state, and have no regrets about leaving, nor do I see any evidence that the direction of travel the country is taking has changed. It's a great shame as the UK is a great country with some lovely people, but is badly governed and managed by a kleptocracy that only benefits a small elite. I don't see the UK ever joining the EU again. There is too much reliance on emotional arguments, that the media connive and exploit and inflame, for the country to ever have a sensible conversation about the EU, sadly. Just my 2c, but as someone denied the Brexit vote, who lost all accreditation in the EU for my three post graduate degrees and subsequently all my work and career due to Johnson's hard Brexit, I wouldn't vote for the UK to join again ever. Trust is gone, and will take generations of work I don't see the UK recognising it needs to do, before the EU, let alone many other countries, stop regarding the UK as a basket case politically.

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    1. Agree. A place where the political capital is all behind the otherness of immigrants and the economical is on mass Immigration. Proper messed up. Keep it going ad infinitum.

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    2. That is a shame for the young people in the UK who want a closer relationship with Europe and change in the UK too. Sorry you have been hurt but many of us didn't vote for Brexit or couldn't vote. Please support our efforts to change the country, point this out to your friends in the EU and don't ignore the inevitable - the desire for a closer relationship is growing in the UK and the question will come up again.

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  6. There are some comments here about "the commercial sectors' failure to speak up about the implications of Brexit before the vote." This would seem to be a subject worthy of more research.

    There was a Guardian podcast a few months ago about the Treasury. One of the people interviewed from the Treasury said (as a side issue) that lots of business people came to the Treasury and complained about Brexit, and the Treasury answer would be "Why didn't you campaign against it?" to which the answer was usually a blank stare.

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    1. I'm Graham Jones
      I think the "blank stare" resulted from the view that before the referendum business people thought that nobody would be so stupid as to vote to leave the EU. I think David Cameron held this view and - being charitable - his reason for calling the referendum was to show the unreasonable wing of the Tory party that there was no support for their isolationist view. So business people did not see it as their responsibility to campaign - they thought that the government was on their side and would speak for them.

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    2. In case of interest, along with Nicole Sykes who was the CBI Brexit person at the time, I did a podcast, hosted by the Mile End Institute, discussing this issue in great detail: https://podcasters.spotify.com/pod/show/mile-end-institute/episodes/British-Business-and-Brexit-eh03bk

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  7. Cameron made many mistakes. He should have built in a 60% vote to leave, he should have stressed the advisory nature of the whole exercise, and he should have allowed 16/17 age to vote. When it was shown that the referendum was fraudulent for several reasons, there should have been a mechanism for declaring it null and void. The Swiss know how to run their referenda. Added to which, the main perpetraitors (sic) should be indicted crimes in public office.

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  8. When Parliament legislated for the Referendum, a super-majority was suggested, but ruled out on the reasonable basis that the Referendum was to be advisory. Extending the franchise to 16..17-year-olds was ruled out on grounds of cost - again forgivable for an advisory referendum. Those matters, and the matter of fraud, are some of the factors that could have been debated after the Referendum.

    I regard it as worse than a 'mistake' for Cameron (and many others) to pretend that Parliament had legislated (as per 2015 manifesto) for a binding referendum. Even after the Miller 1 court ruling, the debate of all relevant factors did not take place. Instead, Parliament was coerced into entrusting the complex and momentous leave/remain decision to Theresa May.

    That dereliction of parliamentary duty does not seem to bother many people, which might explain why the Parliament petition to "Hold a Public Inquiry into the handling and implementation of the EU referendum" has gained so few signatures so far. But regarding your point about indictment, there is a debate in Parliament scheduled for October 23 as a result of another petition "Make lying in the House of Commons a criminal offence".

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    1. Please explain the weird anomaly that if the referendum had been mandatory, the result would have been quashed, but as it was advisory, it couldn't be. I've never understood why this distinction. The 'reasonable' advisory basis didn't really help. As for cost, the irony is that Brexit has been a fiscal and financial disaster, and don't forget that 16/17 year olds voted in the 2014 indy ref.

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