Showing posts with label Anand Menon. Show all posts
Showing posts with label Anand Menon. Show all posts

Friday, 11 October 2024

Britain's Brexitism test

The most significant Brexit-related development of the last fortnight was Keir Starmer’s first visit to Brussels since becoming Prime Minister. Media attention focused on his meeting with the President of the European Commission, Ursula von der Leyen, but, notably, he also met with Charles Michel, Chair of the European Council, and Roberta Metsola, President of the European Parliament.

Significant it may have been, but dramatic it certainly wasn’t, and no one should have expected otherwise. This was never likely to be the moment for some great announcement and, in fact, the joint statement of the Starmer-van der Leyen meeting, whilst positive in tone, was fairly anodyne in content. Nevertheless, it did contain some points of interest.

The Starmer-von der Leyen statement

The reaffirmation of a shared commitment to the Withdrawal Agreement, Windsor Framework, and Trade and Cooperation Agreement (TCA) could be taken as a reminder of the EU’s desire to see all of the provisions of these fully implemented, and perhaps as a pre-condition of any ‘reset’. It was certainly a reminder of the Labour government’s acceptance of the basic architecture of what was agreed by its Tory predecessors, and thus the limitations of such a reset. Yet the reference to “the unique relationship” between the EU and the UK, whilst at one level a truism, could betoken a recognition by the EU that not all its relationships with third countries are of the same order, and by the UK that the brief and hubristic days of post-Brexit ‘global Britain’, in which the EU hardly counted, are long gone.

At all events, the statement identified the desire to develop an agenda of strengthened cooperation “at pace” and, interestingly, included within that agenda were references to both climate change and energy. These had been identified by Joël Reland of the UK in a Changing Europe (UKICE) research centre in advance of the meeting as being something to watch for as neglected, but highly viable areas, for greater cooperation within the existing agreement architecture, and of potentially mutual interest to both sides.

But ‘pace’ will indeed matter. For example, the ongoing development of both UK and EU Carbon Border Adjustment Mechanisms (CBAM) and associated Emission Trading Systems (ETS) means that decisions about their possible linkage, a perfectly realistic possibility within the TCA framework, will soon become pressing. More generally, as economics commentator Simon Nixon argued in a recent post on his Wealth of Nations substack, emerging EU plans to revive EU competitiveness are likely to have major implications for the UK. In short, any reset of relations with the EU will not occur against a static background.

The main substantive announcement in the joint statement was of agreement to begin holding regular EU-UK summits, starting early next year. Anton Spisak of the Centre for European Reform, and a seasoned analyst of Brexit, pointed out that the significance of this should not be downplayed, given the unwillingness of both parties to entertain the idea in the past. Small as it may be, it is a sign of progress, and was welcomed as such by the European Movement UK.*

Testing questions for the ‘reset’

How far that progress goes, and what it consists of, remains to be seen, not least because, as I discussed in a recent post, it’s unclear what the government means by ‘the reset’. But, whatever its intentions, many commentaries on the Brussels’ meeting focused on UKICE Director Professor Anand Menon’s remark that to pursue them the UK needs to show the EU “a token of good faith” by agreeing to a Youth Mobility Scheme (YMS). Yet, beyond the obvious fact that this would do much to enhance the credibility of the UK’s commitment to a genuine reset, what I have not seen discussed is exactly why such a gesture is needed and what it would betoken.

I think the answer to that is bound up with the entire post-Brexit question. To what extent has the UK, not just in its government but in its wider political culture, banished or at least decisively marginalized ‘Brexitism’? I’ve argued in the past that it is this which will be the key test for the viability of any idea of ultimately joining the EU or the single market. It isn’t enough for there to be majority support for doing so in the opinion polls. The credibility question, for the EU, is whether or not there is any danger that a move to join would subsequently be reversed, and the trauma of Brexit repeated. If there is such a danger, there is no attraction for the EU in entertaining UK accession.

That is not in prospect, but the same argument applies, though arguably to a lesser extent, to the far more limited aspirations for rapprochement envisaged by the current government. To what extent can they be taken as a reliable, permanent, feature of UK-EU relations? Or will this ‘reset’ be followed, a few years down the line, by another reset, back in the direction of the Brexit Ultras’ desire for separation, antagonism, maximum distance, and ‘sovereignty’ above all else? Is the UK now, in fact, a reliable interlocutor again, or is the Brexit virus liable to break out again, as shingles may for anyone who has had a bout of chicken pox?

In this sense, complaints that the EU’s original proposal for a YMS deal were made at a time that was unhelpful (£) to the then Labour opposition missed the point: these questions aren’t (just) about any particular party or government, but about the British polity. If the EU still has to tip-toe around the Brexit eggshells of UK politics, then that in itself answers the question of whether or not Brexitism has been marginalized.

There is also a deeper, or, anyway, different version of this same question, which is also highly germane to the viability of a substantive reset in relations. Brexit aside, the UK’s attitude to the EU during the years in which it was a member was very much characterized by grudging transactionalism, rather than by any commitment to European ideals. Brussels was the place the UK went to bang the table with a handbag, and extract the most it could whilst giving the least possible in return. Now that the UK is outside, is that still the approach, rather than, as a reset might imply, one of genuine partnership?

Oddly, and perhaps unintentionally, the comments of some ‘post-Brexit realists’, who, whilst understanding very well the folly of Brexit, discuss Labour’s reset in terms of negotiating strategies and ‘offensive’ and ‘defensive’ objectives, reinforce the impression that this transactionalism persists. At all events, a genuine reset needs to entail more than regret about the way in which May, Davis, Johnson, and Frost went about divorce proceedings. If the marriage is to be replaced by friendship, it is also necessary for there to be a genuine desire to avoid repeating the behaviour which preceded the divorce.

The YMS test

On these questions, YMS is quite a good test to set, relating as it does to the neuralgic issue of immigration which played such a central role in the vote for Brexit. YMS manifestly doesn’t cross the Labour red line on the restoration of freedom of movement of people, so if the government still sees it as too politically toxic to pursue that suggests two, related, things. One is that within the British polity, generally, the experience of Brexit has still not lanced the populist boil about immigration. The other is that the Labour government is not minded to challenge, but to accept, the orthodoxy of anti-immigration sentiment.

It would seem as if that test has already been failed. Unsurprisingly, anti-immigration politics still suffuses Farage’s Reform Party as, hardly any more unsurprisingly, it does the Tory Party, whoever its new leader turns out to be. The Tories did have the possibility of saying that, with Brexit, they had delivered the ‘points-based’ system which Brexiters like Farage used to say was all they wanted. They could then have initiated the ‘honest conversation’ everyone says they want to have about immigration, for example by decoupling it from asylum-seeking, and by challenging the voters about their view that immigration in general should be significantly reduced whilst those same voters, including Conservative voters, do not support reductions in almost every specific category of immigration. But, whether from fear of Reform, their own preferences, or some combination of the two, the Tories have not chosen to take this opportunity.

Nor is there any sign that the Labour government will do so. That clearly extends even to YMS, with reports that the cabinet is split over whether to agree to it, and identifying Home Secretary Yvette Cooper as the main opponent. Cooper played a pivotal and praiseworthy role in preventing Boris Johnson’s government enacting a ‘no deal Brexit’, and a courageous one, too, given the horrendous abuse and threats she faced. So it might be tempting to see her stance on YMS as the latest example of the Home Office capturing its Secretary of State. After all, Theresa May went from challenging her party to stop being ‘nasty’ to being a distinctly nasty Home Secretary, and the department seems to have had similarly radicalizing effect on one-time Immigration Minister, then Tory leadership candidate, Robert Jenrick.

In fact, Cooper has been arguing against freedom of movement since at least December 2016. And although she must know very well that YMS would not mean anything like its restoration she insists that the EU “see this in the context of free movement”, whatever that is supposed to mean, or why it even affects the issue. But it isn’t just Cooper. Starmer, too, despite being enthusiastic about the case for freedom of movement as recently as January 2020, is reported to fear the reaction from the pro-Brexit press to a YMS deal. So even on this quite limited measure it seems Labour have no appetite to take on Brexitism, thus failing first part of the YMS test, namely, whether has Brexitism been marginalized.

This does not mean that YMS will not be agreed in the end. Many people (including me, for what it is worth) expect that it will be. However, the consequence of having failed the first test is that, if and when YMS is agreed, the UK will also fail the second test. For if it is agreed as, or is presented as having been agreed as, part of some quid pro quo deal to obtain some softening of the economic damage of Brexit, such as an SPS deal, then it will be clear that the UK’s relationship with the EU remains within the same transactionalist frame as it has always been. That needn’t preclude a ‘reset’ but places limits upon it, and defines the future ‘partnership’ in relatively shallow terms.

The ECHR test

Whilst the YMS is a good test of the question of whether the UK has left Brexitism behind, there is a different test, which is whether the UK is likely to go even further down the path it took with Brexit by embracing a ‘Brexit 2.0’ of leaving the European Convention on Human Rights (ECHR) and its associated Court. That, too, is largely bound up with immigration, to the extent that ECHR derogation is almost invariably presented as being a means of ‘stopping the small boats’ (in this sense, it is also bound up with the failure to differentiate immigration from asylum-seeking).

Here the text of the Starmer-von der Leyen statement was revealing in “re-affirming” the parties’ mutual commitment to the Convention. It’s not clear that Rishi Sunak could have done the same thing, given his repeated pandering to the possibility of derogation over the ‘Rwanda plan’. By contrast, on this, Starmer’s resolve is unequivocal: a government under his leadership will never leave the ECHR. Given all his priors, it is unthinkable that he will renege on this.

However, it is very far from obvious that this is the settled view of the British polity. Again, it is unsurprising that Farage and Reform UK are adamantly opposed to ECHR membership, whilst support for it within the Tory Party is fragile. Of the remaining leadership candidates, Robert Jenrick has unreservedly advocated leaving and, despite having initially rejected the idea, Kemi Badenoch now says that she would consider doing so.

Whichever of them wins will undoubtedly find much support for making leaving the ECHR official party policy, since doing so is now an article of faith to those on the right. At the same time, former candidate Tom Tugendhat’s foolish attempt to court the right by contingently supporting leaving indicates that even on the more ‘centrist’ wing of the party it is no longer seen as unthinkable. At the very least, his having done so will have weakened what remains of the One Nation Tories’ ability to oppose it. Meanwhile, Boris Johnson, with his usual opportunism, this week called for a referendum on membership.

So it certainly can’t be said, despite all the miseries that Brexit has caused, and despite its unpopularity with the public, that Brexit 2.0 can be ruled out, or that demands for it will be confined to the margins of politics. That seems all the more the case given the faltering first 100 days of the Labour administration. Of course, it is too early to judge, but the possibility of a two-term hegemony, in which Labour might re-write British politics, looks less likely now than it did in the immediate aftermath of the election, whilst the possibility of a disillusioned electorate turning to nationalist populism has become more feasible.

The Gibraltar test

Whatever the truth of that turns out to be, it is abundantly clear that the populist and pro-Brexit media has not been cowed by the new government, and continues to exert a very considerable influence upon it. Many believed that a huge Labour majority would somewhat tame that media, for the general reason that the centre of political gravity would have shifted, and the specific one that journalists would become somewhat beholden to the new regime.

That hasn’t really happened, and certainly not to the extent that it did in 1997, with the result that Starmer’s government has immediately become embroiled in controversies, leaks and scandals (some of them highly confected), and has already been forced to engage in a domestic re-set. That has multiple implications, including for the prospects of a ‘reset’ of relations with the EU.

A clear example was the furore over the announcement that the UK has agreed to cede sovereignty of the Chagos Islands to Mauritius. This is itself, in part, a Brexit story because, as the BBC report of it mentioned, Brexit meant that many EU nations were no longer prepared to back the UK’s case for retaining control of the territory. It’s a point that Brexiters should heed, since it a reminder of how Brexit has weakened the UK geo-politically as well as economically.

However, more to the present point is the way that the agreement was represented by Brexiters and the right-wing press as showing “weakness” and even “treason”, ignoring the fact that the negotiations which led to the agreement had been started by the previous Tory government. This was then linked to ridiculous claims (ridiculous as there is zero connection) that it would be followed by similar deals to cede sovereignty of the Falklands and Gibraltar (£).

It’s the latter claim which relates most directly to Brexit, since the post-Brexit situation of Gibraltar remains unresolved and under negotiation, and resolving it is, in itself, now a test of Starmer’s desire for a reset with the EU. In principle this is becoming urgent, with the new Entry/Exit System (EES) Schengen border controls due to begin in early November although, as I write, reports are confirming the recent rumours that these will be postponed again. But the new controls will, eventually, happen and this matters, since a key issue is maintaining an open border between Gibraltar and Spain, and the associated question of the management of border controls at Gibraltar’s port and airport (which is also an RAF base).

The last time I discussed Gibraltar in detail on this blog was in April, when it seemed that a deal was imminent. A deal, that is, brokered by the Tory government. Since then, reports of the negotiations have been sparse, although last weekend it emerged (£) that the government was about to make formal complaints to Spain about its military overflights of the territory, which doesn’t augur well. But if, and I would think when, a deal is done it will almost certainly involve ‘concessions’ to the EU and Spain, reportedly already made by the previous government, on who undertakes border controls.

This will be the cue for Brexiters to cry ‘betrayal’, as they would have done under the Tories but now, no doubt, with the support of the Tory leadership. Such protest may be marginal, and easily batted away by the government. But the reaction to the Chagos agreement suggests the possibility of a Gibraltar deal being woven into a wider narrative of Starmer being ‘weak’ and ‘not standing up for’ Britain, both generally and in relation to the EU. If that narrative gains ground it will be another indication that Brexitism exerts a profound hold on the UK, whatever its government may be.

Still not done

The question of how Brexit will continue to unfold is a crucial one for our country, so it was with considerable regret that I learned that Yorkshire Bylines’ Davis Downsides Dossier is to be discontinued. It has been a huge, and I think unique, resource for collating media reports about the practical consequences of Brexit, and I’ve referred to it many times.

That isn’t the only loss. At the high-profile end of things, the decision to end the European Scrutiny Committee, for all its problems, without any replacement is a big setback for scrutiny and accountability of the government’s post-Brexit policies, as Jill Rutter and Hannah White of the Institute for Government explain. I’m particularly saddened by the decision to stop funding UKICE from April 2025. UKICE has been a consistently outstanding source of reliable data, incisive analysis, and intelligent comment about Brexit, and an invaluable public resource, not least for this blog where I have cited its work in, very possibly, the majority of posts.

At, if they will forgive me, the lower-profile end of the spectrum, Nick Tyrone has now ended his ‘Week in Brexitland’ newsletter, and Gerhard Schnyder has ended regular posts of his Brexit Impact Tracker blog. Again, I have often cited these sources on this blog and it is a shame that they are gone.

These losses contribute to a growing sense that Brexit (somewhat like Covid) is regarded if not as over, then as something that just has to be put up with, like the British, or more accurately English, weather. It’s a sense I tried to capture in more detail about a year ago in my post entitled “mustn’t grumble”. So continuing with this blog, even on its new fortnightly basis, feels like ploughing an increasingly lonely furrow, but I think it is still a worthwhile one. And this week, just over eight years since I launched it, the blog received its ten millionth visit, and the readership via email sign-ups continues to hold up, so hopefully I am not the only one to think so.

After all, as this post shows, Brexit is very far from ‘being done’, and that was without even mentioning the latest postponement to an aspect of import controls, this time that of digital product safety declarations. And as this post also shows, we are also far from done with Brexitism.   

 

*Another small step of note was the this week announcement of a new agreement between the UK’s Office of National Statistics and EU’s Eurostat, severed since Brexit. It’s not really an example of ‘the reset’, since it was anticipated by the TCA and has been under discussion for a while, but it has a significance beyond itself in that it facilitates UK participation in EU programmes such as Horizon Europe. At the same time, it’s yet another reminder of the extent to which Brexit has caused so many utterly pointless, yet damaging, ruptures, large and small.

Friday, 27 October 2023

Mustn't grumble

There is a stereotype about the British, and perhaps especially the English, that we are unwilling to complain, and will put up with quite a bit of privation with little more than a few grumbles or, even, with the observation that ‘oh well, we mustn’t grumble’. We even sometimes seem to recognize this placidity as a characteristic of national political conduct, as when it is observed that if such-and-such ‘was happening in France then they would be on the streets’.

Whether this really is generally true, or more so than it is in other countries, I’m not sure. Nor am I sure whether, if true, it should be regarded as an endearing stoicism or an appalling apathy. It’s not even clear whether it betokens a rather cowardly fear that making a fuss would be an embarrassment or just a resigned acceptance that doing so would be pointless. But, at all events, it does seem to characterize public sentiment about Brexit.

Brexit: plenty to complain about

That, at least, is one reading of the very extensive recent polling conducted for the UK in a Changing Europe (UKICE) research centre at King’s College London (which is well worth studying in its entirety). It certainly suggests that people have something to complain about. In particular, this latest survey confirms the pattern that has been clear for some time now with only 10% of all voters (and just 18% even of 2016 leave voters) thinking Brexit has turned out well or very well (p.30).

It's true that the beliefs lying behind that are varied with, for example, 61% of leave voters thinking it will turn out well or very well ‘in the long run’, though only 30% of all voters think this (p.32). And there are many more caveats and qualifications to be made about the ‘headline’ finding about the lack of success of Brexit. These include the extent of neutral responses and ‘don’t knows’ within different voter groups, and the variety of reasons given for why it hasn’t been a success. But that headline finding is clear and important. Brexit was, after all, promoted as something which would be an unalloyed success, so the fact that so few think it has been or is going to be is, just in itself, a reason for the public to feel disgruntled.

Of course, Brexit is in some ways an abstract, or at least general, concept and, apart from those with strong commitments for and against it in abstract or general terms, it’s reasonable to think that many people are more concerned with specific issues that affect their daily lives. Yet, if so, then there, too, they have reasons for complaint about Brexit. For example, of the 79% of people who have personally noticed the cost of goods increasing over the last year, 19% think this is entirely the result of Brexit and 41% that is partly the result of Brexit. The 65% who have noticed food shortages are even more likely to think they are wholly due to Brexit (47%), with another 36% thinking them partly so. Travel delays, and staff shortages in the NHS, social care, and hospitality, are also amongst issues where, of those who have personally experienced them, the large majority think they are wholly or partly the result of Brexit. (All figures in this paragraph from p.20 of the UJICE report.)

Taken together, then, there is plenty for people to complain about in Brexit, regardless of whether they attribute it to Brexit in and of itself or only to the way in which Brexit has been undertaken. That is all the more striking considering that other likely candidates for the causes of the problems people experience in their daily lives – Covid, Ukraine, or global factors generally – are less obviously attributable to domestic political choices. For although people may well consider that the government handling of Covid, to take the most obvious example, was defective in various ways it is surely obvious that the virus was something that affected every country, one way or another. Only Brexit is entirely home-grown and entirely unique to this country.

Brexit fatigue

Yet, as Anand Menon and Sophie Stowers of UKICE highlight in their commentary on the report, “there’s a real sense of fatigue around the Brexit debate and high levels of indifference towards the future of the UK-EU relationship”. It may be (the report doesn’t cover this) that, because Brexit is so closely associated with the Tories, complaint about Brexit is manifesting itself, along with other factors, in the government’s unpopularity. But there isn’t majority support for another referendum and, were one to be held, it is by no means clear it would yield a large majority, or even necessarily a majority, to rejoin the EU.

That said, there is clear support (64%) for a “stronger relationship” with the EU, and considerable support (50%) for a “closer relationship” (pp.48-49). What lies behind the discrepancy between the two is not obvious, but perhaps it is because respondents don’t know, any more than I do, what ‘stronger’ and ‘closer’ mean in specific terms, or how they differ. At all events, although there is a degree of support for an improved relationship, in some sense, with the EU, the overall point that emerges is that most voters don’t see Brexit itself as a burning issue, even though they see it as a factor in other issues, like the cost of living and the state of the NHS, which they do see as high priorities.

Some of the reasons for this can be glimpsed in the qualitative research which accompanied the polling data, including the fatalistic one that “we’ve made our bed, let’s all lie in it” (p.28) and the idea that it would be “embarrassing” (p.47) to re-open the issue of membership. These comments both came from leave voters, but even 42% of remain voters wish “we would stop talking about the issue altogether” (p.53). There’s also a widespread sense that it is de-stabilizing and divisive to continue to do so, something which is frequently said by politicians of both main parties.

Trapped by Brexiter blackmail  

All of these things may make some kind of sense, and goodness knows there must be plenty of us – including, I imagine, many readers of this blog – who are sick of Brexit and continue to feel traumatized by the divisions it unleashed. But it is important to understand that such sentiments arise in large part from a trap, or traps, which have been created by Brexiters.

On the one hand, even if they no longer try to claim that Brexit has been a success, some of them now seem to count it as a victory that they have created a situation in which it is too difficult to deal with its failure. So, far from having delivered the ‘will of the people’ for a ‘national liberation’, the Brexiters are now gleeful that the British people are stuck with something they don’t want: not just a bed, but a bed of nails, they have to lie on. On the other hand, the continuing vitriol the Brexiters have poured, daily, into the media ever since their referendum victory is an ever-present reminder that re-opening Brexit would, indeed, be hugely divisive. In effect, it is political blackmail: the constant threat that if the British people attempt to undo Brexit then Brexiters will unleash such extreme toxicity into politics that it will become unbearable.

So, in terms of that stereotype of the ‘uncomplaining Brit’, the situation is rather like being in a restaurant which, having promised a gourmet meal under its new ownership, has provided what most on the table consider to be a s*** sandwich (the asterisks aren’t my coyness, but because certain words create problems for blog feeds and search engines). But why complain? For better or for worse, the meal has been eaten and it’s ‘too late’ to make a fuss now, and anyway it would be ‘embarrassing’. Moreover, the waiter looks distinctly surly and the chef is ostentatiously, and ominously, sharpening knives in the kitchen, so it would be imprudent and possibly dangerous to do so. And, after all, there are at least some of the diners who claim to be delighted with what they have had. All in all, it’s better just to put up with things. Mustn’t grumble.

An ongoing condition

However, one of the ways in which this analogy breaks down is that Brexit is not a finite event, like a single meal at a restaurant. It is an ongoing condition: this is where we will be eating every day for the rest of our lives. A key aspect of how this is now playing out is revealed in another major recent piece of work from UKICE, Joël Reland’s latest version of the UK-EU regulatory divergence tracker which, in general terms, continues to show what is becoming an established pattern of there being relatively little divergence from the EU.

As if in confirmation, the day after that update was published, it was reported (£) that the government would not proceed with its attempt to scrap the ‘nutrient neutrality rules’, environmental protections inherited from the EU which restrict where houses can be built. On the other hand, this week the idea of scrapping EU rules capping bankers’ bonuses has to have been revived (£), having previously been seen as politically maladroit amidst Johnson’s promises of ‘levelling up, then pursued under Liz Truss and Kwasi Kwarteng (£) as part of their deregulatory agenda before being kicked into the long grass of consultation from which it has now re-emerged.

That these developments point in different directions partly reflects the strategic incoherence of Rishi Sunak’s ad hoc approach to Brexit, which I’ve remarked upon before. These particular cases may also derive from attempts to set pre-election political traps for Labour, the first one by suggesting that Labour’s own opposition to axing nutrient neutrality rules is at odds with its promise to cut the ‘red tape’ that impedes housebuilding, the second by challenging Labour to oppose this divergence and risk damaging its attempts to develop good relations with the City.

Such political games aside, Reland, in his accompanying commentary, suggests “that non-divergence is now the status quo” in the sense that it is both Sunak’s policy, even if inconsistently so and not announced as such, and, more explicitly, is set to be Keir Starmer’s default policy if Labour win the next election. Yet, as Reland points out, there is an important difference in that, whilst the Conservatives are undertaking little in the way of ‘active divergence’ (UK changing regulations away from those of the EU), they are allowing far more ‘passive divergence’ (UK not following regulatory changes made by the EU) than, it seems, a Labour government would countenance.

There are very good reasons to avoid both passive and active divergence, which I have rehearsed so many times on this blog that I won’t do so again (see also Peter Foster’s recent book on Brexit, which I reviewed in last week’s post). One particular emerging example, the EU Carbon Border Adjustment Mechanism (CBAM), mentioned by Reland and briefly discussed in one of my recent posts, forms part of an interesting analysis in Gerhard Schnyder’s most recent Brexit Impact Tracker blog. He explains that its likely effect will be to reduce UK tax receipts by billions of pounds, whilst correspondingly benefitting the EU. This, he argues, is part of a pattern whereby the ‘benefits of Brexit’ do indeed exist, but are invariably experienced by countries other than the UK.

Thus, increasingly, it is emerging that in ‘taking back control’ of its laws – which according to the UKICE polling data was the biggest motivation for leave voters (p.6) – Brexit means that what the UK loses on the swings it also loses on the roundabouts. That is, the more the UK diverges from the EU the more expensive Brexit becomes, but the less it diverges from the EU the more pointless Brexit becomes*. And all of this is quite apart from the remorseless, crunchingly negative effect of Brexit on GDP compared with what it would otherwise be – an effect exacerbated by any divergence but not ameliorated by non-divergence (and only very slightly ameliorated by greater alignment).

The full absurdity of what this all means can be seen by reference to the various models of Brexit that used to be propounded. Perhaps we could be in the single market, like Norway, gaining its economic benefits but, it was said, losing sovereignty because we would be subject to ‘fax democracy’ – receiving legislative instructions from Brussels**. That always somewhat understated the influence that Norway has but, anyway, it was deemed unacceptable, indeed deemed not to be Brexit at all, by the ‘hard Brexiters’. So we left the single market, taking the economic costs, but, now, we take legislation from Brussels not ‘by fax’ but by the inexorable economic and political logic of non-divergence.

The (ir)responsibility of the British people

It is re-visiting the form of Brexit, quite as much as re-joining the EU, that the Brexiters have made so difficult with the traps within which they have ensnared the British people. But, whilst they deserve to be judged harshly for having created them, I think that voters, and political journalists and politicians more generally, bear some responsibility. Indeed, although no doubt it would be denounced as ‘elitist’ by populists like Sir Jacob Rees-Mogg (Eton & Oxford), and is far more ‘unsayable’ than the supposedly silenced ‘debate’ about immigration, I despair of the constant vox pops showing so many voters to be puffed full of self-righteous indignation and galvanized with an invincible ignorance for which they feel pride rather than shame.

As regards Brexit, although there’s not much point harking back to it, the casual irresponsibility with which some voted for it in order to ‘give Cameron a kicking’, or because ‘it was time for a change’, or because they ‘never expected leave to win’ was disgraceful. It is far less excusable than those who were taken in by the false promises about money for the NHS or the rejuvenation of the fishing industry. It’s certainly worse than indefensible for leave voters of the former type to say that ‘we’ve made our bed, and now we must all lie in it’.

More importantly, now, there’s a deeply childish vein amongst the electorate, and the polity, in treating Brexit as if it were ‘all in the past’, ‘yesterday’s news’, from which ‘we should all move on’. It’s a mentality which is not just about Brexit; it is equally evident in relation to Covid, with people and politicians talking and acting as if it were now all over when, apart from anything else, an estimated 1.9 million people are suffering from long Covid. Perhaps politics has always been like that, but I think that the attention span is now even shorter because of the twin effect of the 24/7 news cycle and social media. Perhaps, too, the contemporary culture of victimhood, so central to Brexit but evident more generally, is antithetical to the concept of taking responsibility for choices made.

Yet Brexit, and Covid for that matter, demands a more serious response. After all, it was a major shift of the UK’s entire economic and geo-political strategy, and one which only came into practical effect less than three years ago, when the transition period ended. And this is hardly a ‘remainer’ complaint. Surely Brexiters should be the most disgruntled if their great achievement, their national liberation from ‘the EUSSR’, is now only fit to wrap fish and chips? But the answer to that is all too obvious: so evidently has it failed that they would far rather it just be accepted, undiscussed, as ‘just one of those things’ about which we ‘mustn’t grumble’.

The open secret that Brexit has failed

Of course, there are many who remain keenly attentive to Brexit and vocal in their complaints about it, by which I mean not just re-joiners but the Brexit Ultras. And, of course, it was inevitable that, gradually, the politics of Brexit and British politics generally would become less and less distinguishable. Yet there is a quiescence about the failure of Brexit which, given its centrality to politics since 2016, seems astounding.

In my previous life as an academic I co-wrote a book about secrecy in organizations, drawing in part on the concept in political anthropology of ‘public secrecy’. In very brief, this refers to shameful things which everyone knows and yet doesn’t know, an all but unsayable knowledge, akin to what is often called an ‘open secret’, of which examples can be found in many families, organizations or, as seems to be the case in Britain today, in national polities. The result is that what Schnyder calls “the Un-British Brexit benefits” are met with the all too British response of embarrassed silence.

Writing recently in the Guardian, George Monbiot discussed the political silence around Covid, and especially around its continuing effects on those with long Covid or the clinically vulnerable. His eloquent conclusion is that: “These facts – and these people – are treated as social embarrassments, locked in the government’s moral attic like a relative with a mental illness in Victorian England. They’re the country’s family secret. That coughing noise upstairs? Nothing that need concern you.”

In a similar way, the failure of Brexit and the possible solutions to it are only semi-discussable, publicly known and yet not known. For that we should blame the Brexiters who have blackmailed us into making it so, the media organizations who consider it old news, the politicians who purport to lead and to be willing to make ‘hard choices’, but follow the focus groups which want to avoid such choices. But we should also blame the electorate from which those focus groups are drawn, an electorate which, after all, made a big choice in 2016 but which now, whether from boredom or fear – or, perhaps, in some cases, shame – insists that we ‘mustn’t grumble’ about its consequences.

 
Notes
 

*To this should be added the particular dynamic as regards Northern Ireland, which in some respects is obliged to remain aligned with the EU. Thus, the more the UK (or at least GB) diverges from the EU, the ‘thicker’ the GB-NI Irish Sea border potentially becomes. This poses a particular paradox for those Unionists who are also hard Brexiters, since they desire both increased divergence and a thinner, or non-existent, Irish Sea border.

**Younger readers who may be puzzled by the reference to a ‘fax’ are referred to the Museum of Obsolete Objects. Less frivolously, Norway and its lessons for what ‘sovereignty’ means for post-Brexit Britain is the focus of what looks to be (I haven’t read it yet) an interesting new book.

Friday, 27 July 2018

Rules mean rules: we reject them at our peril

In a recent post, I suggested that the latest Brexit White Paper should, like an injured horse, be put out of its misery. Yesterday, Michel Barnier went some way to doing so when, in a single sentence, he rejected a central part of one of its central planks saying: “The EU cannot – and the EU will not – delegate its customs policy and rules, VAT and excise duty collections to a non-member who would not be subject to the EU’s governance structures”.

There’s no surprise in this. It was always an impossible idea that the EU could agree to it even if such a “fantastical Heath Robinson” arrangement (as Boris Johnson called it) could have been made to work in a basic, practical sense. It seems unlikely that the government thinks it could have flown, either, rather than being a staging post to something that would. But, if so, it is boxed into a corner with Brexit Ultras – not just on the backbenches but in the cabinet – saying that the White Paper is a final offer, rather than an (extremely belated) opening negotiating pitch. If that view holds sway then, indeed, we are in ‘no deal’ territory.

It seems likely that over the summer nothing much will happen in terms of the negotiations, and that the government will act as if the White Paper proposals are still afloat, even though they have been holed below the waterline. But we can expect the discussion within Britain to polarise even further as the temperature, literal and metaphorical, gets higher.

The rising temperature of Brexit debates

One indication of that came this week with a call from David Bannerman, a Conservative MEP, comparing people with “extreme EU loyalty” to jihadis who should have the Treason Act applied to them (he later deleted the tweet and replaced it with one referring to those “working undemocratically against UK through extreme EU loyalty”*). It’s easy to dismiss this as crankish raving, but we shouldn’t be too blasé. After all, it comes from an elected politician in a mainstream political party and, so far as I know, no senior member of that party has seen fit to disown it.

Perhaps more insidious, several Conservative MPs, including at least one former cabinet member, have publicly committed to funding the appeal of Darren Grimes against the decision by the Electoral Commission to fine him for breaking electoral law during the Referendum. One such, Nadine Dorries, did so in terms of the “need to expose institutional bias”. This (presumably) is a reference to repeated claims by Brexiters that the Electoral Commission is a partisan body, opposed to Brexit, and its judgments tainted as a result. As with similar claims about judges during the Gina Miller case this is very dangerous territory because it seeks to undermine rules and institutions by positioning them within a kind of cultural civil war for the political soul of the country.

Decisions have consequences

This kind of rhetoric is growing in intensity precisely because the real choices and meanings of Brexit are now becoming unavoidable, with the ‘no deal’ discussions pointing them up in their starkest form. Ian Dunt has today written an excellent detailed account of what such a scenario would look like for the availability of food. At its heart is the point – which I’ve also made on this blog from time to time – that the systems we take for granted are not there by some act of nature but by virtue of specific organizational and institutional arrangements. If we choose exit them, then we cease to benefit from them. If we exit them abruptly and with no alternatives in place (which is what ‘no deal’ means) then we suffer the consequences immediately. Yet Patrick O’Flynn, the UKIP MEP, writes of these consequences in terms of the EU trying “to starve the UK into submission”.

The core proposition of this punishment narrative is that Britain could leave the EU and yet there would be no damaging consequences of doing so. Voters were told that claims to the contrary were Project Fear and, now, that they are punishment. The same proposition has been the guiding theme of the government’s approach to Brexit, as I argued in an article in Prospect this week.

A different and much more subtle inflection of the same idea can be found in calls for the EU to be more flexible, as, for example, in an article today by the highly respected and pro-EU journalist Timothy Garton Ash, warning of the dangers of a Treaty of Versailles style humiliation. Similarly, also in today’s Guardian, Henry Newman, Director of Open Europe, argues for the EU to “see sense” about what no deal would mean for the EU, especially in terms of security and international relations.

I’m certainly not and never have been of the view that the EU can do no wrong (for that matter, I’m not sure that anyone is). It is an imperfect institution like all others. But I find it difficult to see what flexibility the EU could reasonably be expected to show in the face of the red lines put forward by the British government (nor is it very clear what this flexibility would consist of). The EU, like any multi-lateral organization, is and has to be rules-based or it will fall apart. That is so not least because, despite what some Brexiters claim, it is not and cannot act like a State.

Britain, prior to Brexit, understood that very well, and one way to understand the present situation is to imagine if it were not Britain but another country leaving. I do not think that in those circumstances many in Britain, and certainly not those of a Eurosceptic persuasion, would then be calling for special arrangements whereby that country could continue to have many membership benefits without accepting those rules it disliked. Which has been exactly the EU’s position, and signalled as such since long before the referendum.

The rejection of rules

What links the various developments discussed in this post is a lack of understanding, or simply a rejection, of a rules-based order. Whether in relation to the EU itself, or specific aspects such as the customs union, or the regulatory systems governing food standards, or the operation of judicial and quasi-judicial institutions such as the Electoral Commission, that rules-based order is treated as irrelevant or politicised as being at odds with the ‘will of the people’. This, which is one of the commonalities between Brexit and Trumpism, is one of the defining features of populism as well as one of its greatest dangers. It is also fantastical, as is clear in the call from Brexiters that the way to escape EU rules is to embrace … WTO rules.

It is strange that Britain – a country whose attachment to rules, captured in the stereotype of our propensity to form orderly queues – should be in the grip of such a mood. It’s worth recalling the lines in Robert Bolt’s play A Man for All Seasons, set in another period when such a mood held sway, and dissent was deemed treason. Will Roper, the prospective son-in-law of Sir Thomas More, declares that he would cut down every law in England to get to the Devil. More replies:

Oh? And when the last law was down, and the Devil turned round on you – where would you hide, Roper, the laws all being flat. This country’s planted thick with laws from coast to coast – man’s laws, not God’s – and if you cut them down – and you’re just the man to do it, do you really think you could stand upright in the winds that would blow then?

On 6 July 1535 More was executed, having been found guilty of High Treason under the law which David Bannerman MEP, would like to see updated to cover those with “extreme EU loyalty”.

 
*We might wonder what this means. I’m not aware of anyone working undemocratically against Brexit. The main call from those opposed to it is for another referendum, which is plainly a democratic way of working, whatever the other arguments – made cogently by Anand Menon this week - against it might be. Yet Brexiters insist that such calls do not respect democracy which might, were Bannerman’s proposals accepted, imply that to call for a vote would be treasonous.

Wednesday, 27 June 2018

What business is saying about Brexit, and why

Much attention has been focussed on the dismissal of warnings from Airbus – and an increasing number of other businesses - by Jeremy Hunt, Boris Johnson and others. Less attention has been given to the specific reason given by Hunt as to why Airbus should keep quiet: that it undermines the British government’s capacity to negotiate with the EU.

This is nonsense, for the simple reason that the EU negotiators, and all informed commentators, know full well how damaging Brexit will be for most businesses, especially those with closely integrated European Just-in-Time supply chains (£) like Airbus but, to varying degrees, all businesses of all sizes which trade with the EU-27. Indeed companies and trade bodies have been warning about it for well over two years and with growing insistence since last year, because of the way that business investment cycles and location decisions work. This isn’t a game of poker – or, if it is, it is one in which both players can see each other’s hands.

The only people who persist, wilfully, in not recognizing this damage are the Brexiters who dismiss it as (of course) Project Fear. Even that dismissal is perverse, since if the warnings are indeed nonsense then making them would not be helpful to the EU negotiators in the way suggested by Hunt anyway.

In fact, the only thing which make the negotiations difficult is that Britain, to the extent that its government can agree on an aim, is seeking as the outcome things that it has already excluded by virtue of its red lines. Specifically, Britain is seeking something like the kind of frictionless trade that is only achievable by being in the single market and a customs union, which it has ruled out; and participation in agencies and programmes regulated by the ECJ, which regulation it has rejected.

So, in summary, this is the central paradox of the government’s Brexit approach thus far: it is seeking to negotiate something which it has already rejected.

This is the real meaning of the ‘Barnier stepladder’. It is not so much that, as leading Brexit academic Professor Anand Menon recently put it, “this is the choice that the EU has presented us with”. It is rather just a tabulation of the types of relationship which have been identified by numerous other analysts, going back well before the referendum – but set against the red lines Britain itself has specified.

It’s true that Britain can expect to have a ‘bespoke deal’, but only in the trivial sense that every relationship with the EU has its own particularities (e.g. the Canada FTA is different to the South Korean FTA): but the basic binary of being inside or outside the single market is unavoidable, as Sir Ivan Rogers, amongst many others, has repeatedly pointed out.

On Barnier’s diagram, the British red lines mean that the only trade options left are a Canada style FTA or no deal. Personally, I do not see how a Canada FTA (or any other FTA) can be compatible with the UK (and EU) red line of there being no hard Irish border. But, leaving that aside for today (although, of course, it is a core issue), we might wonder why Brexiters are so troubled by this? After all, before the referendum, those who were not saying that we would be ‘like Norway’ were usually, like Boris Johnson, extolling the virtues of a Canada-type arrangement. If this were indeed so desirable then, again, there would be no problem save, perhaps, timing. The EU are, apparently, quite willing to enter into such a relationship.

But, of course, Johnson’s was a false prospectus. As he and other Brexiters were warned, but ignored, at the time, a ‘Canadian’ hard Brexit would be completely inadequate for services, and also for most manufacturing, because of the non-tariff barriers that the single market seeks to abolish. A no deal Brexit would be even worse for trade and – potentially far more immediately damaging – for non-trade issues such as air travel. Again, there’s no mileage in the idea, floated by Fox, Davis, Johnson and others, that somehow the EU can be made to believe the UK would walk away with no deal: it is, literally, incredible and the EU know that to be so whatever bluster the Brexiters put up. No country is going to deliberately engage in such self-immolation (though that does not mean it might not happen through a series of accidents).

So at least for the government – although some ministers have apparently still not grasped it – it is no longer possible to regard either Canada or, still less, no deal as viable policy. Thus it has lighted on the idea that it is possible in some way to ‘negotiate’ membership benefits without membership. That won’t happen not because the EU are punishing us, and certainly not because we have ‘shown our hand’, or had it revealed by Airbus et al but, simply, because it is a logical and legal impossibility.

The question then becomes: is the government going to realise that in time, which means either forcing the Brexiters within and outside the government to accept that or at least to face them down? This, supposedly, is what next week’s cabinet meeting is intended to result in, but we have heard that before. Perhaps the pressure of time and the pressure from businesses will yield results this time. I am not so sure, though, because even the softening of hard Brexit which seems to be under consideration seems to be a long way from realism, being based, still, on the ‘customs partnership’ idea and, now, on seeking single market membership for goods only. The former is an entirely untested and highly bureaucratic model, relying on high levels of trust and goodwill. The latter, I believe, seriously understates the complex inter-relationship between goods and services and, even if the EU accepted it I doubt it could be made to work in practice. I’ll post more on this if and when it emerges as government policy.

The fact that, thus far, the government have refused to face up to the real options available and the choices to be made is what is leading so many businesses to speak out now (and, it seems, many more are saying similar things privately). It is not simply about no deal Brexit versus hard Brexit, it is that even hard Brexit will damage them. In this sense, whilst it is true that businesses want clarity, it certainly does not follow that once they have clarity they will be happy to stay in the UK. It is just that they will then be able to make the decision as to whether to stay or not, with all that means for jobs and taxes which the Labour Party would do well to note. Thus clarity may be good for them, to allow them to make plans, but it won’t necessarily be good for the rest of us: for many manufacturing and services businesses the only clarity that will make them likely to stay would be for Britain, in fact or in very near effect, to stay in the single market and a comprehensive customs union.

In the absence of that, there probably won’t be big, immediate pull outs – especially where there are large sunk cost installations as in the car industry - but, rather, gradual disinvestment over many years. Indeed, there is already evidence of that as the government’s own figures show. But whilst ruling out the least economically damaging option, the government has not accepted what the alternatives must, by definition, be. What businesses are saying to them is that it’s time – in fact it’s long overdue – to get real. In that way, far from undermining the negotiations they are pushing for the only way in which the negotiations can make progress.