As the EU finalises its negotiating guidelines, it's time for Brexiters to get real

The future of Britain is going to be shaped to a far greater extent by Saturday’s EU-27 Council meeting than it will be by the June general election. That is one of the many ironies of the Brexiter mantra of ‘taking back control’, because whilst the chain of coming events was begun not by the EU but by the British referendum, the shape of those events will be very much down to the EU.

So insular has the discussion in the UK been before and since the referendum that one might think that Brexit is simply a matter of the UK formulating its demands. The EU will then fall into line because ‘it’s in their interests’ or ‘it’s in Germany’s interests’ or even because ‘it’s in German’s car industry’s interests’; and anyway because ‘we’re the world’s fifth largest economy’. There are many versions of this wishful thinking, all of them completely devoid of any understanding whatsoever of how the EU – or the world in general – operates. If it was how they think, then Britain would never have left the EU, since doing so is so far at odds with both our national and business interests.

It’s true that in the immediate aftermath of the referendum Britain might have been able to pursue a soft Brexit of single market membership. That would have taken considerable diplomatic and political skill, but it might have been achievable. Instead, everything the government has done since then has had the effect of making goodwill and room for manoeuvre disappear. And not just the government. EU leaders (and their electorates) see and have disdain for the infantile headlines of the Brexit press, and they don’t simply laugh off Farage’s oafish rudeness, on the odd occasions he turns up at the European Parliament, or Johnson’s boorish buffoonery about ‘prison guards’ and ‘Prosecco exports’.

So whilst Britain has been engaging in an orgy of stupidity and insularity, the EU has, almost since the day after the referendum, been quietly and consistently developing its stance, as explained in this excellent three-part summary of the EU’s position by David Allen Green of the FT. It is a stance that has changed very little from what was indicated before the referendum, and every leave voter who cared to could have known in broad terms what it would be. None of them can say there was no warning.

The time for wishful thinking, gutter press headlines and vapid slogans ended when Article 50 was triggered. Since then, Brexit has come face to face with reality. Donald Tusk’s immediate response was polite in tone, but uncompromisingly plain in content. Primary issues to agree would be the rights of EU citizens in the UK, the (or at least the methodology for calculating the) British exit bill for commitments already made, and Northern Ireland. Exit terms would have to be, at least, progressed first to a degree acceptable to the EU (not the UK, the EU) and only then could there be the beginning of talks on future terms, including trade. Interestingly, almost immediately the British government accepted this definition of process, even though it was exactly the opposite of what they had set out in the A50 letter, and the implications for the time frame for a trade deal that went with it. Reality bites #1.

The European Council draft negotiation guidelines in full contained greater detail, but no surprises save for the mention of Gibraltar (which I have discussed elsewhere), including emphasis that no sector-by-sector single market membership would be envisaged and that no bilateral talks between members of the EU-27 and the UK would be allowed. Again, both of these had been hoped for and even expected by the government which, again, almost immediately accepted that it would not be so. Reality bites #2.

Unless Saturday’s meeting produced something unexpected (and reports of the Luxembourg pre-meeting today suggest not) we already know that it will be likely to endorse the draft guidelines, albeit that leaks suggest some hardening, especially on financial services and on the issue of EU nationals in the UK. On the latter, this is likely to include a requirement for a quicker and simpler citizenship process and the guarantee of their legal rights. There is a particular, and instructive, symbolic importance to this. The EU is negotiating for itself and its citizens. That should seem obvious, but it points up both the determination of the EU to negotiate en bloc, and the fact that this is not going to be like all the EU negotiations of past decades where the UK has been negotiating as a member state and, very often, able to shape the nature of the EU. Now, there are very clearly two sides across the table. Reality bites #3.

The fundamental underlying issue is one that almost every EU spokesperson has made clear before and since the referendum. There will be no deal agreed by the EU in which Britain has a better situation as a non-member than it would have as a member of the EU. That logic is simple and understandable. But that does not mean that Britain has nothing to negotiate for – there are better and worse versions of a 'less good' situation than membership.

There are two great dangers for Britain now. One is that key parts of economic and social activity simply pack up and go without waiting for the outcome of the negotiations, with long-term and serious consequences. There is already evidence of an academic brain drain, with all that that implies for British pre-eminence in research, especially scientific and medical research, and its very successful university ‘export business’. Likewise, plans to move financial services jobs out of London are proceeding apace, with all that that implies for the already very eroded and fragile UK tax base and, hence, for public services.

This first danger might be minimised if the second one is avoided. To put it bluntly, Britain – and Brexiters in particular – have got to get real, and quickly. The crazy reaction to the mention of Gibraltar in the draft guidelines is an object lesson in what needs to be avoided. In particular, the danger now and in the coming months is that Brexiters in politics and the press whip up the idea that the EU is ‘punishing’ Britain for leaving. That is nonsense, and as Tusk and others have repeatedly said there is no need for punishment: Brexit is punishment enough. Brexiters of course will disagree and see Brexit as no punishment at all. Fine, but in that case accept that leaving means leaving, and that the EU will pursue its own interests which do not, now, include us, and drop any talk of being punished for a decision that you made with all the facts available to you.

This is a big ask of Brexiters, because it goes against the victim mentality that propelled them to victory in the referendum. But they need to own that victory now. They frequently complain that ‘remoaners’ are talking down the country and seek viciously to silence them. But the real damage to the country comes from Brexiters refusing to deal in a detailed, pragmatic way with the consequences of the choice they have made. Every screaming headline and every bellicose punch-drunk interview from a Brexiter politician damages us more. Taking back control requires, first, a degree of self-control and, second, an acceptance that having, in their terms, done so by winning the referendum, they now have to face the realities of what it means.


Update (30 April 2017): Finalised guidelines did, indeed, change little apart from those areas expected. In the meantime, Theresa May's talk of the EU-27 'lining up' against UK indicative of exactly the 'punishment' rhetoric I warned of.

Lessons from Gibraltar

The response in the UK to the EU Council’s draft negotiation guidelines has been instructive. Most attention has been focussed on the paragraph (22) relating to Gibraltar, to the effect that no UK-EU Brexit agreement will apply there without the agreement of Spain*. This gives Spain a powerful voice in the Brexit negotiations and calls into question the sovereignty of this disputed territory, as well as indicating that the EU is likely to side with Spain in that dispute. Gibraltar, which voted overwhelmingly to stay in the EU (and, in a previous referendum, to stay in the UK) is significant not least for being the only part of the UK other than Northern Ireland to have what on Brexit will be a land border with the EU. (Readers of the blog will have been alerted to this facet of Brexit, as I pointed it out in my post in last October; for a detailed briefing on the quite complex issues relating to Gibraltar and Brexit see this report by Joe Carberry and Jonathan Lis).

The first instructive point is that, although it was certainly not a major issue during the referendum, the dangers of Brexit for Gibraltar were pointed out by the Remain campaign. In May 2016 the then Foreign Secretary Philip Hammond said:

“I genuinely believe that the threat of leaving the European Union is as big a threat to Gibraltar's future security and Gibraltar's future sovereignty as the more traditional threats that we routinely talk about.”

The reaction from Brexiters was furious. Liam Fox, now the International Trade Secretary, was enraged that the possibility should even have been mentioned, saying “I think there are limits to what you can and cannot say in any campaign that goes way beyond acceptable limits” (sic). All this was reported in the Daily Express under the inevitable headline about ‘Project Fear’.

We can now see that Hammond’s concern was well-founded, and that it was perfectly legitimate to raise it. The same, of course, can be said of most of what was dismissed as project fear, as I pointed out in my post on the triggering of Article 50.

Moreover, and this is the second instructive point, whilst Brexiters may have shouted it down during the campaign they cannot do so now. As the slogans and false claims meet reality, reality wins out. The EU have, as a matter of fact, decided to take this line and now it has to be dealt with. No amount of bluster or outrage can change that. Screaming headlines in the British press are not just ineffective against the EU but, even, harden feeling against the UK. So this is, in microcosm, indicative of the entire shift that has occurred as a result of the triggering of Article 50. As I wrote in my most recent post, Brexiters now have to take responsibility for the consequences of their decision.

The EU’s stance on Gibraltar is a lesson in realpolitik. Of course both the EU and individual member states such as Spain are going to seek to pursue their own interests. On the Gibraltar issue, the UK did exactly the same thing at the time of Spain’s accession to the EU in 1986 (insisting on an open border). Brexiters can, and do, decry this as ‘bullying’ and even, in their hermetically sealed logic, as ‘proving’ that it is right to leave. But that doesn’t change anything: welcome to the real world of international relations (to which irresponsible and ludicrous implications by Brexiters of possible military action contribute nothing good).

In fact, although attracting less headlines, the EU Council’s statement in several other ways underscored the reality of the power plays which will now unfold. In particular, the UK’s desire, expressed in the Article 50 letter, for parallel talks on exit and on future trade has been rebuffed. The latter will only occur once the EU deems that sufficient progress has been made on the former, although that is a softer position than insisting on the complete conclusion of exit talks before future talks. Similarly, the Brexiter fantasy of sector-by-sector access to the single market was emphatically squashed, as was the possibility of bi-lateral negotiations between the UK and individual EU-27 states.

None of this, however, makes the EU’s stance ‘punitive’, as this piece by Vincenzo Scarpetto of Open Europe explains, and it should be understood in the context of a negotiation as discussed in this excellent analysis by Peter Ungphakhorn. It just means that the UK cannot dictate terms in a vacuum as Brexiters imagine. Moreover, completely undiscussed as far as I am aware, section five of the statement makes it very clear that whilst the UK remains in the EU it must “remain loyal to the Union’s interests”, something which I suspect in the months to come will become a matter of some significance.

There is another lesson from Gibraltar row. Brexiters always seem to think that dealing with the EU means, primarily, dealing with Germany and to a lesser extent France. But although these are indeed very significant, the EU is an association of member states and is not ruled from Berlin. The failure of Brexiters to understand this grows out of their narrative of how the UK lost sovereignty from EU membership whereas, in fact, the EU was an arena in which the UK (in particular, one might argue) could exercise and magnify its sovereignty. At all events, the coming negotiations will show that each country within the EU-27 will have some degree of influence.

Spain will be especially relevant not just because of Gibraltar but also because of the large numbers of British residents there and because of their stance towards Scottish independence, something, not coincidental to the Gibraltar row one assumes, revised just today. Ireland, for obvious reasons, will also be highly influential, but each member will to some extent have the opportunity to pursue its own agenda within the negotiations. All of the compromises and trade-offs that Brexiters bemoan about EU membership will not cease, but now the UK will face them alone across the negotiating table rather than as a powerful member, with powerful allies, within the EU. In a similar way, having for years mocked the EU Parliament as a ‘rubber stamp’, Brexiters now face the prospect that any exit deal will be subject to the approval of that body which is drafting its own red lines on what is acceptable.

We are going to have years, now, of Brexiter outrage at having to deal with the inevitable consequences of their policy, as if these were not both predictable and, in fact, predicted. Like a toddler’s tantrum, “it’s not fair” will be the repeated refrain when the world proves not to be amenable to their wishes. And this tantrum will not just be about the EU. Brexiters are excited by the possibility of regaining ‘our seat on the WTO’ but whether or not Brexit means ‘trading on WTO terms’ that is going to bring many more encounters with a reality that does not fit with Brexiter fantasies. An early indication of that came last week with a question from Indonesia to the WTO Agriculture Committee about post-Brexit trade issues. The US, Russia, China and Argentina have all “registered an interest” in this matter, which has potentially far-reaching implications for British agriculture. That may seem an arcane matter, but it shows how post-Brexit Britain will have to navigate a whole new world of complexities which will be as much, or more, political than economic. In this sense, too, the furore over Gibraltar is an instructive pointer to what the future holds.

*Note: there is some complexity in decoding what this means. The Sky News political editor Faisal Islam in a series of tweets today has raised the suggestion that its true meaning relates to any future trade deal under A218, rather than to A50 negotiations. This seems consistent with the wording of paragraph 22 of the Council guidelines which speaks of ‘after the UK leaves’ but is also puzzling (to me) in that A218 deals require unanimity anyway, so Spain would have had a veto already. No doubt more clarity will emerge, but at all events the explicit reference to Gibraltar in the guidelines is significant.

Update (4 April 2017): A comment below made me ask myself what the implications for Brexit are for the Channel Islands, something I don't recall having seen discussed. A quick search found this recent report: http://www.itv.com/news/channel/2017-03-23/brexit-to-have-significant-impact-on-channel-islands/