"Best guy to follow on Brexit for intelligent analysis" Annette Dittert, ARD German TV. "Consistently outstanding analysis of Brexit" Jonathan Dimbleby. "The best writer on Brexit" Chris Lockwood, Europe Editor, The Economist. "A must-read for anyone following Brexit" David Allen Green, FT. "The doyen of Brexit commentators" Chris Johns, Irish Times. @chrisgrey.bsky.social & Twitter @chrisgreybrexit
Friday, 18 September 2020
Blockades, mythical and metaphorical
This was a dishonest linkage to make, because there is nothing in the IMB which would prevent this mythical ‘blockade’ (though there are rumours that the forthcoming Finance Bill will do so). The two areas in which the Bill proposes powers to defy international law are – as detailed in the previous post – goods flows from NI to GB and the state aid rules in the NI Protocol (NIP). This point was made in a very effective parliamentary performance from Ed Miliband during the IMB second reading debate this week, in which he challenged Boris Johnson to explain his claim – which, unsurprisingly, as it would have been impossible, the Prime Minister refused to do.
The myth of the ‘blockade’ threat
As so often in the Brexit saga, disentangling the different strands of what is being said and why is complex. The first time a linkage between the IMB and the ‘blockade’ threat was suggested seems to have been in a report in The Sun on Tuesday of last week, where it was said that Michel Barnier had made “veiled threats” about GB to NI food flows during the trade negotiations and that it was these which had provoked the government to its move against the NIP (quite how the timings of this would have worked is unclear, by the way).
The story was given legs by a reference in Barnier’s statement at the end of last week’s talks when he said that “more clarity is needed [about GB’s proposed future sanitary and phytosanitary regime] for the EU to do the assessment for the third-country listing of the UK”. Such listing will be needed for GB agricultural produce to enter NI at the end of the transition. The UK position – as articulated by David Frost - is that this is a non-issue as GB will continue to follow EU standards, and if it proposes to change these will give the EU and the WTO plenty of notice.
Whether this issue is being used as negotiating leverage in the trade talks or not I don’t know. But it certainly doesn’t amount to the threat of a ‘blockade’ with its connotations of naval interdiction. Rather, it is a reminder of the procedural, rules-based nature of the EU as an institution and, for that matter, of international trade. It is not enough for the UK just to say it will follow the EU’s Sanitary and Phytosanitary (SPS) standards and, as Boris Johnson asserted at this week’s liaison committee, that the EU should automatically list the UK with its failure to do so meaning it is not acting in good faith. Rather, like any third country, which is what the UK has chosen to be, it needs to submit the relevant documentation for assessment.
If it is compliant, then the EU would have no grounds to refuse third country listing, and there is no suggestion that it would do so. Even if it did, the UK’s correct response would be to seek redress through the WA dispute system (and, perhaps - I am not sure - through the WTO) and in the meantime to make use of the existing provision within the NIP whereby “serious economic … difficulties” can be addressed by unilateral action, thus avoiding any ‘blockade’.
In short, there’s no reason to think that the EU is minded to punish the UK in this way, even if it was it couldn’t, even if it could the UK has no need to break international law to respond to it, and even if it did need to the IMB doesn’t provide the means.
My guess is that the UK has not wanted to submit its SPS plans because of the likely contradictions between following EU SPS rules and making trade deals with other countries, especially the US (although it is reported that the government now says it will do so by the end of October). For the EU’s part, there is presumably a reluctance just to take it on trust that the UK will comply and will give adequate notice of any changes. Similarly, it is reluctant to take on trust that the UK’s post-Brexit State Aid regime will be robust and wants to see the precise detail before agreeing a trade deal.
Such a lack of trust is the inevitable consequence of the bellicose, negative and sometimes duplicitous way that the UK has approached the Brexit negotiations over the last four years. Doing so has consequences, and those consequences have caught up with Britain. They can only be compounded by the current threat to break international law, so if that threat was indeed meant as a counter to Barnier’s position about third country listing then it is counter-productive anyway.
The wider attack line
However, the initial reporting was not the same as what came to be said, in that it only suggested the IMB clauses were being used to ‘talk tough’ in reply to the EU’s ‘threats’. It was not until a few days later that it began to be falsely claimed that the Bill was actually a way of neutering those threats.
The obvious reason is that the ‘blockade’ line offers, to Brexit supporters in the population and the media, something that sounds sufficiently serious to justify the breaking of international law. Perhaps it was developed in part because of the backlash against that plan. However, it is only one strand within a wider and much more dangerous narrative that the Brexiters are developing. For the ‘blockade’ allegation is part of a thoroughgoing attempt to claim that the EU are not negotiating in ‘good faith’. As noted above, the Prime Minister himself explicitly linked third country SPS listing with good faith this week. But the wider attack is that not just for this reason but more generally it is the EU and not the UK which is in breach of the Withdrawal Agreement (WA) and, therefore, of international law.
It takes quite some brass neck – actually, it takes a sociopathic lack of self-awareness and pathological dishonesty - to make such a claim, but none of these qualities are alien to the Brexit Ultras. As usual (cf. GATT Article XXIV) they seize like barrack-room lawyers everywhere on some half-understood (if that) legal text to give themselves a veneer of authority with which to impress the gullible. Currently, it is Article 184 of the WA (see p.287 of link) according to a semi-literate briefing produced by the ERG (described by law Professor Steve Peers as “perhaps the worst legal analysis I have ever seen, and I am including students who leave their exam booklet blank”).
This article requires both sides to negotiate in good faith and to use their best endeavours to secure agreements on the future relationship. Risibly, the Brexiters interpret this to mean that if the EU doesn’t give the UK a deal that it wants then that violates the article and means the EU is not acting in good faith. They also conveniently ignore that Article 184 refers to the agreements to be sought as those referred to in the Political Declaration – the very document which, with its references to level playing field conditions, they and the Brexit government have disowned. Even in its own terms it’s nonsense since if, as claimed, the EU is in breach of the WA then, as with the ‘blockade’ non-issue, the remedy is to use the dispute resolution procedure within the WA rather than unilaterally to break its terms.
Never mind. Like so many other bogus Brexiter claims this one – along with other equally footling ideas such as that the NI Protocol was only designed to be temporary – are now being pumped out by any and every Brexiter MP and their social media foot soldiers. So too is the Brexiters’ idea that since the Miller case (which forced the parliamentary vote on triggering Article 50) confirmed the primacy of parliamentary sovereignty over the Executive then ‘therefore’ this means parliament doesn’t have to obey international law. It’s hard to be too scathing of the woeful intellectual inadequacy and dishonesty of such gibberish.
The motivation here is obvious. Even in these post-truth times it strains public credulity that a government that signed a deal six months ago can now claim it is deeply flawed. Admittedly Bernard Jenkin now openly says that “the UK made a mistake in signing the WA” – something he and the rest of the ERG voted to do - but if that becomes the Brexiter message then it suggests that the entire basis on which the Tories campaigned and won the General Election was also a mistake. It might even invite the heretical thought that if MPs can change their minds about what they voted for then so too could the electorate that voted for Brexit.
So, instead, the blame is being ascribed to the EU for bad faith and for making ‘extreme’ interpretations of the WA. This, rather than Brexiter delusion or duplicity, is then used to justify reneging on parts of it or in due course – as I have been suggesting for some time is the Ultras’ hope – on its entirety.
The IMB at home and abroad
For the time being that only extends to the provisions of the IMB, assuming it passes. This is now likely because it seems the government has conceded to its ‘rebels’ that the provisions which would break international law can only be activated with a further parliamentary vote (and with some other new caveats). It is only a fig leaf, with little substantive meaning, although it does show that there are still lines – even if only shakily drawn in the sand – that Johnson isn’t quite able to cross.
But as so often in the Brexit process – the Chequers Proposal and the ‘Malthouse Compromise’ come to mind – attempts to broker domestic agreement, even if successful, myopically ignore international consequences. In particular, the existence of this legislation even in very slightly softened form is anathema to the EU.
There seems to be some dispute as to whether simply passing (or even just proposing) such a law would, in itself, be grounds for the EU to take legal action, or whether that would require the powers granted to be exercised. It is also a political question as to whether the EU would do so even if legally able, to which the answer seems to be ‘not yet’. Either way, assuming the relevant clauses pass in any form the damage will have been done to the last residue of the EU’s trust. The EU won’t walk away from the trade talks, and a deal is still possible, but the inviolability of the WA as a condition for such a deal has been forcibly reaffirmed. And it will taint the UK’s international reputation as Ursula von der Leyen has warned (£), with potential effects going far beyond Brexit.
Already this week we have seen signs of that, with robust statements from Joe Biden and other US politicians re-confirming that a UK-US trade deal is unthinkable if the Good Friday Agreement is compromised. Breaching the Northern Ireland Protocol (NIP) in the ways proposed by the IMB doesn’t in itself necessarily do that, but it could be a move in that direction.
Indeed Dominic Raab’s visit to the US, which occasioned these statements, showed how this could be. For in defending the IMB he made the extraordinary comment that it was only necessary because the EU was trying to erect a regulatory border down the Irish Sea. Yet that it is precisely what the UK has agreed to. So if Raab actually understood and meant what he said – an open question, since he appears to be totally out of his depth - then the entire basis of the provisions in the NIP which prevent a land border with Ireland, and therefore the GFA, would be compromised.
Brexiter MPs reacted with fury to Biden’s intervention but, like it or not, as a consequence of Brexit Britain has, as it were, blockaded itself into isolation, and can be booted around by the big players whether that be the US, EU or China. Arch-Brexiter John Redwood may blithely opine that “trade deals are nice to have but not essential … Getting back full control of our money, our laws and our borders is essential”, but that always hollow slogan now sounds increasingly like the last desperate cry of a country sinking into oblivion. Not waving, but drowning.
Domestically, the IMB may initially have looked smart. The Tories could depict Labour’s opposition to the Bill as “siding with the EU”, and many voters will surely take the view that breaking international law isn’t ‘really’ breaking the law. And as one said on a vox pop on Radio 4 this week ‘it’s not as if we’ll be torturing people’. Plus for many Tory core voters almost anything that seems to further the Brexit cause, or even just sticks fingers up at the EU, or even just enrages the liberal metropolitan elite, will be greeted with rapture.
Yet those voters – and more importantly the Brexit Ultras – may be infuriated at having been marched up the hill of flouting the WA only to be marched half-way back down again when Johnson encountered some opposition. There are also rumours that the legislation may now be delayed, despite the initial claim that it was so urgent it had to be rammed through quickly, which would be a further climbdown.
So the IMB is beginning to look like yet another Johnson fiasco. He has raised the Ultras’ hopes of ditching the WA – or at least of ‘sticking one’ on the EU - then backtracked. Yet the damage to relations with the EU and to the UK’s wider reputation is done anyway, and won’t be forgotten for a very long time. In this respect, too, he seems to have blockaded himself into a corner.
The underlying problem: trying to turn lies into policy
Aside from their immediate motivations and effects, these latest events re-emphasise something more fundamental about Brexit. It has always been based upon a denial of, or at best a naivety about, reality. In particular, as Tom McTague wrote in The Atlantic this week, a denial of the reality of the meaning of Brexit for Northern Ireland (or of Northern Ireland for Brexit). Consider the absurd dismissal of this reality by Boris Johnson and others in 2016, insisting that Brexit would have no impact on the Irish border because of – again, invoking a bit of legal-sounding mumbo-jumbo – the longstanding existence of a Common Travel Area. But there has to be a border somewhere. Having for reasons of expedience accepted that it would be across the Irish Sea, Johnson is now trying yet again to deny the need for a border.
Brexit wasn’t just a denial of the reality of Northern Ireland but also of the nature of the single market, the nature of the EU, and much else besides. Looking at the Vote Leave campaign documents now, there is scarcely a sentence in them that anyone could now seriously defend. The line in the final page summary about “having better relations with our European friends” has a particularly hollow ring to it this week, whilst the core economic claim that “there is a free trade zone from Iceland to Turkey to the Russian border and we will be part of it”, always a lie, now looks like the ravings of a lunatic.
As I wrote in March 2019, you can lie but you can’t turn lies into policy. The attempt to do so is the reason the UK is being driven to more and more extreme positions. It is that which has given the events of the last few years their strangely repetitive quality as, like moths dashing themselves against a window pane, the Brexiters keep trying to buck reality. A small example of that came this week when Geoffrey Cox refused to support the IMB on the basis that it broke international law by unilaterally over-riding the WA. Cox – himself a Brexiter, demonstrating that they are not all Ultras – had also as the then Attorney-General refused in the face great pressure to advise that the government could legally unilaterally exit what was then the backstop in May’s WA. That was eighteen months ago, but the Ultras are still convinced there is a way around having to honour what you agree to.
What we see in the government’s present contortions over the IMB is, as Rafael Behr wrote with customary insight this week, “the dawning, desperate realisation that there is no way to reconcile responsible statecraft with the fulfilment of Eurosceptic fantasy”. But the realisation, if that is what it is, has come too late. The UK government and Eurosceptic (or Brexiter) fantasy are now inseparable and – in their aims to reshape the civil service and judiciary – they threaten also to capture the institutions of the state.
Of course, for those who have the true faith, it is neither fantasy nor lies, and no event or experience can shake them into accepting reality. Some, at least, still genuinely believe that there is some kind of trade agreement that can largely replicate single market membership without any of the obligations. They still believe that either now or after a few months without a deal the EU will make such an agreement, no doubt at the behest of German car makers. They still believe that it doesn’t matter much anyway, as ‘WTO terms’ will be just fine. They still believe that the Irish border issue is one confected by Brussels and perhaps Dublin. The real blockade is of their brains: fanatical Brexiter ideology prevents the entry of reality.
What now?
Their fantasy will, as it always has done, seek to drive Brexit policy in a harder and harder direction. It is the only way of outflanking encroaching reality – if we push harder our dreams will come true, and if they don’t come true it is because we aren’t pushing hard enough - and is also the only way of sustaining the populist culture war that secures them the votes they need. Derogation from the European Convention of Human Rights is the already emerging next step, perhaps after a no (trade) deal Brexit and, if so, the subsequent ripping up of the WA in its entirety. For there is surely no way that either the financial settlement or the NI provisions would survive Brexiter pressure in the absence of a trade deal (though one must pray that those for citizens’ rights would).
That seems a perfectly feasible short-term scenario, and at the beginning of this week might have seemed the most likely. Certainly Sir Ivan Rogers, who has been right about most things to do with Brexit, believes that that there will be no deal. But in this febrile atmosphere, and with a Prime Minister so lacking in consistency, principle, or even basic competence, Brexit predictions are more difficult than ever. So as the week ends it still looks possible that after all the chaos of this autumn (of which there is much more to come) clears away, some kind of fairly limited deal will be done. At least, there are a few straws in the wind – as regards both fisheries and even state aid – that this might be so.
If so, the economic consequences will be bad but not dramatic and not very visible, just a gradual decline of prosperity. Relations with the EU will be sour but not totally destroyed. Resentfully the UK will comply with the Irish Sea border, and the complex, rickety mechanisms for doing so may just about work. There will be years of ongoing negotiations on a piecemeal basis, and constant attempts by the UK to push to the limit and beyond what it had agreed. The Brexiters will be sulphurous and constantly urging more antagonistic stances, and still convinced that their fantasy would have been possible had it not been betrayed.
It’s hardly an inspiring vision, yet, limited though it is, an optimistic one which in another week may seem hopelessly unrealistic. For there are many obstacles to reaching even this very modest destination. Brexit has blockaded Britain from any more convivial one.
Friday, 4 September 2020
Back to school
There’s a distinct ‘back to school’ feeling in the air – and never has the beginning of the school year been the news story that it is in these Covid times – with that slightly chilly tang in the mornings that presages the end of summer. Nowhere is that more so than for Brexit, with next week’s talks marking the beginning of the final phase of the Transition Period, and the likelihood of considerable political drama. Many people who have, very likely, switched off from Brexit in recent months will see it return with a vengeance. Even leaving aside the UK-EU negotiations there will be a substantial programme of domestic legislation necessary in advance of the transition ending.
Yet for all that feeling of newness, we will be returning to a very familiar landscape. For the more time goes on the clearer it is that Brexit consists of a series of recurring themes. So before we get back to the grind of the detail of state aid, fisheries (£), conformity assessments, equivalence regimes, geographical indicators (£), border queues and all the rest of it (links are to some of the latest reports/ discussions of each issue), this last post of the summer will consider some of these themes and what they mean for the coming period.Brexit: more about Britain than exit
Little of substance has happened in the negotiations over the summer, which is not a surprise. Boris Johnson talked of putting a ‘tiger in the tank’, but as usual it was just boosterish phrase-making with no substance. As noted in my previous post, the process is in limbo awaiting political decisions that Johnson hasn’t made, or hasn’t communicated. But looking back over the entire Brexit process so far it is striking how many of these long periods of relative inactivity there have been. Despite the loudly-ticking clock of, first, the Article 50 period and, now, the transition period there’s somehow been a remarkable lack of focus on the actual task of exiting the EU. Indeed it Is only very recently that basic practical preparations for, for example, border management have begun to be made.
Some of those quiet periods have, of course, been caused by the inevitable hiatuses of the political seasons in both London and Brussels. But that aside, instead of what should have been focussed and intensive negotiations with the EU, most of the last four years has been taken up with UK domestic politics. The most obvious example is how, almost immediately she had triggered Article 50 and despite repeated promises that it would not be in the national interest, Theresa May launched her ill-fated General Election, wiping two months out of the original twenty-four month schedule. Then, when the first main extension from April 2019 to October 2019 was agreed, and Donald Tusk pointedly advised the UK “not to waste this time”, it was mainly taken up with the Tory leadership contest.
That domestic and, especially, Tory Party politics have been so central is not accidental. It has arisen because the UK tried to undertake Brexit at the same time as trying to define what it meant and how it could or should be done, something which continues to be true right up to the present moment. That obviously flows from the lack of definition by the Leave campaign, but was very much compounded by the secretive and non-consensual way that May came to define Brexit (i.e. no single market, no customs union, virtually no ECJ role), and especially the unnecessary rapidity with which Article 50 was invoked, on the back of fighting a deeply divisive and also entirely unnecessary legal battle to prevent a parliamentary vote on doing so. It was not as if there had been a time frame promised to the electorate but, as with so much of the Brexit story, keeping the ever-angry, ever-suspicious, Brexit Ultras temporarily mollified trumped every other consideration.
Perhaps even worse than that, the ongoing battle to define Brexit whilst simultaneously enacting it has been characterised by repeated refusals to accept quite obvious facts. The consequence is not just that the debate has moved more slowly than the formal process required, but that it has gone round in endless circles. There are several examples that could be given but I’ll highlight a couple of the most important.
Going round in circles
One is the wilful refusal to accept that the terms of leaving would have to be agreed in advance of the terms of the future relationship, including the future trading relationship. That was built into Article 50, which only specified that the exit terms would be agreed “taking account of” the future relationship between the departing member and the EU.
Yet from the outset many Brexiters refused to accept that this was so and in particular to accept that a financial settlement would need to be made in advance of, and separately to, any trade deal (some, indeed, have never accepted that there is any need for a financial settlement at all and some, even, that the negotiations required Article 50 to be invoked at all). May herself did not seem to grasp the issue of there being two separate deals to be done until April 2017, and even in 2019 government ministers were still saying that a trade deal would be in place the day after exit.
One could actually argue that the EU showed flexibility in agreeing to create two phases for the Article 50 talks, one on the exit terms and, if sufficient progress was made, a second phase on future terms, even though that could not yield a signed trade deal in the period. But that, itself, was resented by the Brexiters who, as David Davis, the then Brexit Secretary, put it, threatened the ‘row of the summer’ (of 2017) over this sequencing.
That row never happened, but the sentiment underlying it continues to this very day, with its lineal descendent being the growing clamour from some Ultras to repudiate the Withdrawal Agreement even if there is a trade deal, and certainly if there is not. Even more bizarrely, despite having wanted to get going with trade talks from the outset, when phase 2 was entered, the UK collapsed into internal dissent about what future terms it was seeking, leading to eighteen months of infighting that culminated with May’s defenestration and replacement by Johnson
The second main way that Brexit has gone round in circles is the refusal of Brexiters to accept – or perhaps their inability to understand – the very basic proposition that leaving the single market (SM) and leaving the customs union (CU) both, in different ways, create borders. This isn’t some ruse of the EU’s, still less is it the EU’s punishment or even choice. It is the logical and legal consequence of leaving the institutions that remove borders.
If, as Brexiters insist, Brexit must mean the UK setting its own regulations and its own tariffs, then there must be a territory within which these apply, and if there is a territory then there must be a border delineating that territory. That is true in general, and it has the economic consequence of making ‘frictionless trade’ with the EU impossible. And it is true in the particular case of Northern Ireland, with all the political ramifications of that, something which again some Brexiters still insist is confected by the EU, or Ireland, or both.
Yet for years the UK continued to talk about frictionless trade as perfectly possible, even after hard Brexit had been announced. Even now, it’s common to see Brexiters talking as if post-Brexit borders will only happen if the EU insists upon it. As for Northern Ireland, the number of times under which ‘alternative arrangements’, ‘technological solutions’ and the ‘Malthouse compromise’ have come and gone in the Brexit debate is almost impossible to count. To these examples could be added other zombie ideas, of which the claims about GATT Article XXIV are perhaps the most infamous.
Choices have consequences
So the years of the Brexit process have been characterised by a repetitive grinding down of these recurrent refusals to face reality. What could and should have been understood before the Referendum – and certainly before beginning the Article 50 process – has had to be taught, like simple arithmetic to a child who is simultaneously truculent and dull-witted, to the Brexiters (or, as it seems to outsiders, to the UK itself). And these lessons – whilst varying in content - are all of the same general sort: in choosing Brexit, the UK has chosen the consequences of Brexit, which can’t be magicked away. In particular, if the UK is outside the EU (SM, CU) then none of the things which come with being in the EU (SM, CU) any longer apply.
The impossibility of frictionless trade and the unavailability of ‘alternative arrangements’ for borders has now – at least at governmental level – been accepted (though, jaw-droppingly, is now described as “growing the customs sector” as if it were some sensible industrial policy rather than the introduction of massive new costs). Yet it is still necessary and justified for Michel Barnier to remind the UK that ‘Brexit means Brexit’, as he did at the end of the last round of talks.
For although the UK’s negotiating position under Johnson and David Frost has superficially accepted being a ‘third country’ to the EU, it continues to seek things which go well beyond what any third country has* in a whole swathe of areas. And, more subtly, by framing many of its demands in terms of third country precedents, the UK fails to understand that these do not constitute a set of established ‘rights’ for a third country but are contingent upon what – in the specific circumstances of the UK – it is in the interests of the EU to agree.
Brexiters’ negotiating conundrums
This idea that the EU is likely to give the UK a generous deal is one of the strangest features of Brexit. It appears in various slightly different guises. One is that those who most loathe the EU and denounce it for any manner of evils, including that of bureaucratic rigidity and being a ‘protectionist racket’, seem, paradoxically, to have had as their working assumption that the EU would be charitable - or, in Brexiter-speak, ‘flexible’ - in its approach to a departing member.
Another equally contradictory version is that the UK holds all the cards whereas the EU is desperate for a deal (German car makers, trade surplus etc) and in any case moribund and on the point of collapse, but at the same time is a powerful bully, willing and able to punish the UK. Similar ideas are present when it’s claimed that the UK would be fine if there’s no deal and yet when the EU warns of the prospect no deal it is making a ‘threat’ to the UK; or, conversely, that the UK can gain leverage by threatening the EU with the damage of no deal and yet no deal would not damage the UK.
But the underlying issue here is that these negotiations do not conform to the normal idea of two sides each seeking to pursue its own rational interests. On the UK side that is partly because these fantasies about the EU mean that it is treated as this peculiar mixture of ogre and pushover, but it is more because, in pursuing Brexit, the UK is in the position of doing something which is not in its rational interests. If nothing else, that is clear from the fact that, as a trade negotiation, it’s unique in setting out to create worse terms than currently exist for both parties. For the EU, that has been forced upon it, and given Brexit happened it is acting rationally to protect its own interests – which turn out to be different to those ascribed to it by Brexiters, but no less rational for that (in brief: prioritising the protection of single market integrity).
For the UK it arises from the nature of Brexit itself. Brexiters themselves sometimes acknowledge this, when saying that they fought and won an emotional battle for ‘independence’, but don’t then follow through to realise that this has put the UK permanently on the back foot in negotiations over its interests, since these have been defined in irrational terms. That follow through has been avoided by insisting that the costs of the emotional appeal to sovereignty are just Project Fear, and that sovereignty comes, or ought to come, cheaply or even at no cost at all. So the emotional argument is cloaked in a pseudo-rational veneer. No hard choices have to be made because we can gain sovereignty (as Brexiters see it) without losing anything. This is also why Brexiters have repeatedly sought to discredit or conceal projections of the costs of Brexit.
This leads to a negotiating position which is partly captured by the familiar clichés of ‘cakeism’ and ‘cherry picking’, but it’s actually much more perverse than that. The idea of having the cake (of membership) whilst eating the cake (of leaving), or of picking the juicy, enjoyable cherries and leaving the rest does imply a rationality – even if an opportunistic and unrealistic one. But the extreme Brexiter position is so emotionally hostile to everything associated with the EU that actually the cake is tainted and the cherries suspect. So they don’t just want what they can’t have, but they want what they don’t want. They are caught between wanting ‘a’ deal, but not wanting any actual deal.
If all that sounds convoluted, a different way of stating the Brexiters’ negotiating conundrum is this: whatever benefits the EU has economically, they all come at the price of sovereignty – we want sovereignty and we don’t care what it costs – but actually it’s cost free – or it would be if the EU was reasonable and would agree to what we want – then we’d have the exact same benefits as before – but those benefits come at the price of sovereignty - so if they agree to what we want then it isn’t sovereignty, which is what we want at all costs.
This, which has always been the background to, and in many ways incorporated into, the UK’s official negotiating position, effectively makes any negotiated outcome impossible.
The sand in the gears
But there’s always been some sand in the gears of this rickety Heath Robinson of an argument, which is that any government actually in power, even one defined by Brexit, has to have at least one eye on reality. In power, rather than jeering from the side lines, no government can afford the political and economic price of sovereignty at all costs when those costs become manifest. Which is why Brexiters like David Davis, Steve Baker, Dominic Raab and Suella Braverman all resigned from ministerial positions where they had responsibility for enacting Brexit so that they could preserve their fantasies intact.
That was true for Johnson, as well, when he resigned as Foreign Secretary, but the lure of premiership brought him back to the table. So he now faces a similar situation to Theresa May in being forced to at least partly confront reality. She, of course, got shredded by her party for doing so, a fact that won’t be lost on Johnson not least since he led the charge. Since of his own volition there has been no Transition Period extension, he now has no more room to indulge the fantasies he did so much to promote at the expense of the realities he did so much to deny.
Hence we’re now reaching a pivotal moment, because in the next few months, one way or another, the UK-EU relationship is going to be re-framed by a deal of some sort, or by no deal. Either will have a big negative impact on individuals and businesses but, despite the claims of some, no deal will be considerably worse than a deal. In that sense, what happens matters greatly, including the precise nature of any deal which is done as that could have big impacts on specific sectors or activities. But in some ways the outcome won’t have much effect on the underlying situation.
Deal or no deal, the Brexit psychodrama will continue
If Johnson strikes a deal of any sort, then the Ultras within and outside his party will decry it for having compromised sovereignty. If he doesn’t strike a deal, then that won’t just be an end to matters but the beginning of fresh – and very urgent and difficult - negotiations which will be caught in the same insoluble loops and conundrums of the last four years of Brexit.
There is therefore no scenario that won’t have Brexiters saying ‘this is not what Brexit was meant to be’ and there is no scenario in which they will say ‘now we have what we always wanted’. Not only will they denounce any deal, but If there is the no deal ‘clean Brexit’ the most extreme call for they will say that the UK could have had a perfect deal but for betrayal by May and the remainers, and the intransigence of the EU. And deal or no deal (but especially no deal) they will step up their agitation to renege on the Withdrawal Agreement as a price not worth paying.
That is really worth reflecting upon. No matter how much pain Brexit causes the UK it is never going to stop the Brexiters complaining. David Cameron once famously called on his party to “stop banging on about Europe”. That didn’t happen, and so the Referendum was meant to put the issue to bed. When that was won by Brexiters, it might have been thought that that, surely, would put an end to matters. But it didn’t, and nothing will, no matter what is or is not agreed in the coming months. The Tory psychodrama about Europe, into which they have dragged the entire nation, is far from over.
So as the new Brexit term begins, no one should think that it will bring a resolution. We’re not about to graduate from Brexit, we’re just changing schools. The difference is that we are moving from the sheltered junior school of EU membership and the transition period, to the much harsher senior school outside.
*The link at this point is a handy extract of the relevant parts from a speech given by Michel Barnier at the Institute of International and European Affairs in Ireland this week.
Friday, 28 August 2020
A preview of the blame games
Brexit matters more to Britain than to the EU
Ending this limbo is primarily dependent on political decisions in the UK, in particular about disclosing what its post-Brexit state aid policy is to be. The EU has already shifted from seeking direct application of its state aid rules to accepting something like equivalence between the two regimes – which needs the UK spells out what its regime is to be. It seems very unlikely the EU could soften further on this key issue.
The reality is that Brexit simply doesn’t matter that much anymore for the EU - there’s clearly a preference for some sort of deal, but, as Georgina Wright of the Institute for Government wrote this week, a no deal scenario has long been planned for. It also seems increasingly to be expected. Nor does Brexit have anything like the same political saliency for any EU country – not even Ireland, which will be most affected but is not split over it – that it does for the UK where it is still potential political dynamite.
That dynamite is – obviously – because of the continuing deep divisions over Brexit, but also because of the very practical consequences of no deal for the UK. Without rehearsing all these again, a leaked report this week of government preparations was a reminder of what is potentially at stake, including troops on the streets to keep order, water rationing and major food shortages. This is not ‘Project Fear’, it is planning by a pro-Brexit government, and there is nothing remotely like it in prospect for any EU country.
That difference of priority is insufficiently appreciated in the British polity and media, which, because in general it sees the EU entirely through the lens of Brexit, assumes that Brexit is central to the EU. But although when the UK was a member state, including during the Article 50 negotiations, its internal politics were of interest to, and often accommodated by, the EU all that changed once the Withdrawal Agreement (WA) was signed. At that point, the most crucial EU concerns about Brexit were dealt with, to be replaced with bewilderment and irritation that the UK seems to have decided that the Political Declaration that accompanied it is an irrelevance.
Who would get the blame for no deal?
This is the background to an interesting and widely-discussed report in the Sunday Times (£) by Tim Shipman, a journalist with strong sources in the government and the author of excellent books on the politics of Brexit. The thrust of the report is that the government thinks the EU is dangerously failing to understand that Johnson’s government, unlike – supposedly - May’s, is fully committed to Brexit and willing to entertain no deal. Yet such an analysis itself shows precisely a failure to understand that the whole show has moved on: no deal under May meant no WA, but the WA is now signed and Britain has already left the EU.
Beyond that, the government’s position as reported – I would think accurately – by Shipman remains hopelessly stuck in the same mire as May’s government, itself a result of the impossible promises made by Vote Leave. For although the report presents the UK as humbly seeking a ‘bare bones’ deal because it, unlike May’s administration, embraces and accepts Brexit as a change from membership to third country status that simply isn’t true at all. Instead, as Jennifer Rankin, the Guardian’s Brussels correspondent, pointed out, over a huge swathe of things the UK is still seeking continuity with what it enjoyed as a member state.
That, of course, does still matter to the EU. Not in order to ‘punish’ an ex-member but for the obvious reason that if non-members have the same things as members then membership becomes meaningless. In that respect, far from Johnson’s government having accepted that ‘Brexit means Brexit’, and moved on to a new phase, it is still wedded to at least a version of his familiar ‘cakeist’ fantasy. Unsurprisingly, the EU continues to bat back attempts by the government to turn these fantasies into ‘legal texts’ without any agreement to them having been negotiated.
It obviously doesn’t take a genius to work out what is going on here, not least since it has been in prospect for months, indeed years: the ground is being prepared to blame the EU for no deal because it failed to understand that it was dealing with a British government fully prepared to go down that route if necessary. This was made explicit in a typically bullish editorial in the Sun this week.
That isn’t to say that no deal is inevitable, or that the government has decided on that course. In fact, I suspect the truth is as simple as that the government genuinely believes the dogma of the Brexit echo chamber it now entirely inhabits which insists that ‘the EU always blinks at the last minute’. So on the one hand we’re seeing that strategy repeated and, on the other, getting a taste of how the government and media will present things if no deal turns out to be the consequence: ‘we tried to warn the EU what would happen if it didn’t meet our perfectly reasonable requests but they wouldn’t believe us’.
The logic of this is circular in that the more the EU makes it clear that it will countenance no deal if necessary, the more it confirms the Brexiter view that nothing will change until the very last moment. At the same time, it’s a highly peculiar strategy given that the adverse effects of no deal will be felt much more heavily by the UK than the EU. In effect, it’s a game of chicken which has strapped every man, woman and child in the UK in the path of an oncoming train, and the closer a collision comes the more it justifies staying there. The fallback plan, apparently, is to tell the maimed victims that it was the train driver’s fault.
So that’s the first and, clearly, the foremost blame game on display, that between the UK and the EU. Again, it’s a purely domestic game, because the EU itself won’t be that interested in it, and the member states even less so.
Would the Brexiters be blamed for making false promises?
There are alternatives to blaming the EU. The most obvious – ongoing since the referendum, but which has new zest as the end of the transition approaches – is the disjuncture between what is happening and what was promised by Brexiters. That disjuncture will exist almost as much if there is a deal as if there isn’t, since it is clear that any deal will be far less commodious than was proposed to leave voters in 2016.
We had a small taste of this when former cabinet minister David Gauke pointed out this week (in response to the Shipman article) that Brexiters have long-promised that “the EU will give us whatever we want as long as they believe we’re prepared to walk away” and – in line with my analysis above - are lining up the excuse that “the EU underestimated our determination”. This engendered a huge and furious reaction and what was interesting about that was how precisely it exposed the central flaw of Brexit.
On the one hand, Iain Dale said that Gauke was talking “utter bollocks. Literally no one argued that the EU would give us all we wanted” and Julia Hartley-Brewer said simply “no it isn’t” (i.e. that what Gauke had said was the Brexiters’ position was not). But only a couple of days before during a (separate) discussion of the issue of what Brexiters had promised Hartley-Brewer had re-affirmed that “we do hold all the cards because we will do just fine with or without a deal and the EU knows it” (emphasis in original, but denoted with the symbol “*”).
Since some of the debate about Gauke’s tweet has descended into who has used the literal words “whatever we want”, let me spell out that if one side ‘holds all the cards’ it must follow that it could get whatever it wants since the other side would have no cards, and if those cards consist of being able to do fine without a deal then the leverage consists of being able to walk away. So in all substantive senses, Hartley-Brewer is still making the same claim that Gauke says Brexiters made all along but which both she and Iain Dale say was never made by Brexiters.
I’ve deliberately focused on this micro-fragment of what is in itself a relatively minor discussion because in the welter of all that has been said over the last four years it has become easier and easier for Brexiters to muddy, disown or misrepresent the claims they made. As it would now be an impossible task to subject the entirety of the Brexit debate to the same level of detailed reconstruction, it’s useful to give an illustration of how it works.
What’s especially difficult is that Brexiters often conveyed their message by means of an overall upbeat tone (e.g. that there would be a deal, and a good one) even if sometimes adding in, as it were, the small print some qualification to this message (e.g. but if not we can fall back on WTO terms and that will be fine too). Thus when, now, faced with the overall message, they are able to quote the small print as a ‘get out’ so as to deny they made any promises at all. It is a tactic familiar to dodgy salespeople the world over. Although in this case, in fact, the ‘we hold all the cards’ line was widely used, most famously by Michael Gove, and that is so well-documented as to be beyond reasonable dispute.
That such claims and promise were made matters, and it is important not to allow history to be re-written. But the present point is that, even now, two leading pro-Brexit broadcasters, each with large audiences and presumably significant influence, are able to make diametrically opposite statements – I assume in good faith, and I am not casting aspersions on either of them - about the nature of the Brexit negotiations and what was promised for them. And Dale and Hartley-Brewer are just two examples – the same story could be told using any number of Brexiters in politics or the media. This is not, by the way, an example of the familiar theme of ‘history being written by the victors’, in that what it shows is that the victors give as varied an account of that history as, at the time, they made promises about the future.
This is central to how the Brexit vote was won, because quite contradictory claims and promises were made as a deliberate campaign technique. It is also why the process of actually delivering Brexit has been so fraught, because what those claims meant and how those promises would be delivered was not defined or agreed. This in turn sets up what will inevitably be years of recrimination, denial and counter-attack.
So that is the second of the main emerging blame games: what Brexiters said and promised versus what actually happened or will happen, and of course this goes well beyond the specific example given by Gauke this week.
Would it be blamed on those who didn’t back May’s deal?
Also rumbling away in the background are assessments of what happened during the convoluted and complex political events of 2019. These include, in particular, the idea that politicians (and others) who favoured remain, or at least a soft Brexit, are at fault for not having backed May’s Withdrawal Agreement. On this account, especially if there is no deal, but even if there is a hard Brexit deal, the blame lies with those who were too recalcitrant to back May.
This involves several highly dubious propositions and, again, a certain amount of re-writing of history. It forgets, or downplays, how the hard core of opposition to May’s deal came from the ERG and, especially, the self-styled Spartans amongst them. It forgets that throughout much of 2019 every Brexit outcome was conceivably possible (or, as it often seemed, impossible) and so all shades of opinion opposed to May’s deal had reason to hold out against it in the greater or lesser hope that their preferred outcome would triumph.
Crucially, it neglects the fact that May’s deal was itself ‘hard Brexit’ – out of the single market and customs union - pointing to the eventual Canada-style outcome that remains Johnson’s stated aim – the only real difference being the extent to which she seemed to accept the realities of what that would mean, especially as regards the Level Playing Field. It also neglects that May, too, was not averse to threatening no deal. So hers was by no means the ‘compromise’ approach it is now spoken of as being. And, related to that, it neglects the fact that as the Brexit Ultras now say, as quoted in the Shipman report for example, Johnson’s WA is “basically the same as May’s deal. It’s more than 99% the same”.
Given that the major difference between the two was the substitution of the Irish Sea border for the Irish backstop arrangements, about the only group who can really be criticized for not supporting May’s deal are the DUP – and of them a better critique would be that from the outset, long before the WA or even the triggering of Article 50, their entire support for Brexit was a massive mistake given their core political priority of preserving the union.
Would it be blamed on those who enabled the 2019 election?
A somewhat related revisionism is that those opposed to Brexit were guilty of a terrible error in enabling the 2019 General Election. This charge is aimed especially at the LibDems and also at remainers within the Labour Party. Perhaps it could apply to the SNP, too, but that is less likely to stick since it’s easy to argue that the SNP’s central goal of Scottish independence is well-served by Brexit and, for wider reasons, by a Johnson government – indeed developments since the election seem to bear that out.
This criticism of remainers neglects the fact that there was no prospect of a parliamentary majority for a referendum (and still less for a revocation of Article 50) in the 2019 parliament. Moreover, Johnson had already passed his (then) Withdrawal Agreement Bill at second reading by some 30 votes. So there was a strong argument – and I made it at the time, as did others including Ian Dunt – that, highly risky as it was, a general election was the best and possibly only way to head off the eventual passage of the Bill and to re-constitute parliament in ways more propitious to remain.
None of that is to defend the way that Labour and the LibDems fought the election as regards Brexit, and the LibDem Article 50 revocation policy was – as again I argued that at the time – a total fiasco both in principle and practice. But the fact that agreeing to an election turned out to put a definitive end to the remain cause does not mean that it was a mistake to take that risk, though it is obviously true that taking it did not pay off.
Nor is any of this to deny that the internal state of the People’s Vote movement was – as we now know in more detail (£) – shambolic or that remainers made plenty of mistakes in 2019, including a failure to work together with soft Brexiters (and vice versa). But the calculated risk of the election was not one of them, and can only be presented as such by ignoring what was actually happening in parliamentary votes at that time.
Why does any of this matter?
It may seem pointless to revisit the, often, arcane details of the last four years of Brexit. But doing so is not a scholastic exercise: it is still very much live politics. Brexit was never going to be – and surely everyone can now see this? – a single, quick, or simple event. It is a long, complex, ongoing process which we are still living through. In that context it is vital to retain an accurate record of what was said, by whom, and of who did what, when, and why. The purpose being not, in fact, to assign blame but, rather, responsibility and also, perhaps, to hold on to a sense of reality in the face of the Zersetzung-style techniques that increasingly characterize Brexit.
Much of what is now happening – and Johnson’s whole strategy, most obviously in his ban on the use of the word ‘Brexit’ – can be thought of as a battle between remembering and forgetting. The coming months are going to be crucial ones for defining what Brexit is going to mean for Britain and that is now certain to be very different to what those who voted leave were told it would be. So it’s going to be important to recall how we got to this juncture. After all, if, to reprise an earlier metaphor, a massive national train wreck is in prospect, it’s not unreasonable to ask what led to it - even if it’s small comfort to know the answers.
Friday, 7 August 2020
The Brexit screw tightens
Freeports and chemicals
This week has seen several examples. Freeports have for years been touted as a benefit of Brexit, and became government policy when Boris Johnson became Prime Minister, with a consultation exercise launched last February. I discussed the issue at that time and won’t repeat that analysis here, except to say that it pointed to the very mixed evidence of their benefit, even in their ‘non-EU’ form. Last week saw another outing of the argument for their virtues but the very same day new research from the UK Trade Policy Observatory showed these to be “almost non-existent” (£). If this is to be a major component of post-transition trade and industrial policy, it is misplaced.
If freeports will not provide an economic boost, the dangers of Brexit to the economically and strategically vital chemicals industry were again laid bare (£) in the latest of a series of excellent reports by Peter Foster on the practicalities of Brexit. The industry is the UK’s second largest manufacturing sector and its trade and supply chains are massively tied to the EU. These dangers have always been incipient because of the decision to leave the European Chemicals Agency (ECHA) and the REACH regulations it oversees, but under Theresa May there had been a plan to seek some form of Associate Membership.
That might or might not have succeeded (a House of Lords Report in 2018, which also sets out in clear detail the entire ECHA/REACH issue, was doubtful), but under Johnson’s even more hard line approach, complete regulatory independence is now the policy. This is going to be hugely costly (£1 billion, according to Foster’s report) and bureaucratically cumbersome however it is done, and the more so if no agreement is reached with the EU on accessing ECHA data – which is doubtful. In short, no one yet knows how it is going to work or whether it will be ready in time for the end of transition, and that’s less than five months away.
But the real kicker is that even if it all goes ahead, what in effect will have happened is to a very large extent a replication of the existing regulatory regime with the sole ‘advantage’ of it being badged British. Indeed, it’s an example of one of the many things that the UK’s budget contribution was paying for, though not included in the crude accounting that dominated the Referendum campaign. Its replication is also an example of how, in practice, Brexit Britain will be pulled by the gravitational force of EU regulation because REACH is also, increasingly, a global standard.
This is the purely theoretical ‘sovereignty’ which is being regained; the costs to businesses, trade and jobs, which are real, are the price. It is a paradigm case of what Brexit is going to mean in practice, as has been clear since August 2017 – back when all we knew about Brexit was that it meant Brexit – when the provisions of the (then) Data Protection Bill were outlined.
Round-up of other news
We have also seen updates on the objections of Kent residents to the new Brexit lorry parks plus the news that Operation Brock is to be revived for the end of the transition (as for Holyhead, goodness knows how its problems will be dealt with), new warnings of food shortages in Northern Ireland because of the Irish Sea border, new warnings of an ‘environmental governance gap’ at the end of the transition, the revival of government plans for stockpiling medicines in preparation for possible disruptions, a new CBI survey showing business concern about, and lack of preparedness for, the end of the transition period, and the latest culture war volley in the elevation of prominent Brexiters to the House of Lords (forgotten, now, is the Brexiters’ insistence that it is crucial that our laws be made by those the people can vote out of office). As with the list of some of last week’s developments in last week’s post, the sheer diversity of complex problems is striking.
As for the latest good news about Brexit, that’s easily dealt with: there is none. Some might propose that the imminent UK trade deal with Japan is an exception but, although we don’t yet know the detail, it isn’t likely to be significantly different (£) to the EU-Japan deal the UK is currently part of. It’s certainly true that not doing such a deal would have been damaging, but that just means that this story is ‘not bad news’ rather than being ‘good news’ - despite the jubilance of the Brexit press, of which we will have more when the agreement is signed (and, note, this deal is, at Japanese insistence, a speedy re-negotiation rather than a roll over, to which Japan would not agree). It is also possible, as mentioned in a recent post, that if and when the UK and the EU reach a trade agreement then a further, more extensive, deal with Japan might follow.
Similarly, are we really meant to welcome today’s news that up to £355 million is to be spent to support new systems and processes for trade between Great Britain and Northern Ireland? That may be helpful to Northern Ireland’s businesses – though there are many questions as to how, whether and when it will work – and if it was offsetting the damage of a natural disaster might in that sense be welcome. But Brexit is self-inflicted, and all along it was denied that this, or any, damage would occur.
So if good news means something unequivocally good that is happening as a result of Brexit, and which wouldn’t have happened without Brexit then we are still waiting for it.
The significance of Iain Duncan Smith
In the face of this, it might be expected, in any rational polity, that those who have championed Brexit and its unalloyed advantages would now be starting to express some alarm about – perhaps even some contrition for – what they have foisted on us. And in a way they are – but it is a way that is neither rational, nor moral, nor honest. Witness how this week we have seen veteran arch-Brexiter Iain Duncan Smith bemoaning the financial commitments signed up to in the Withdrawal Agreement (WA).
It’s a story with multiple layers of absurdity and disingenuity. He complains that “in the fine print, unnoticed by many” of the WA is a £160 billion bill for EU loans. But this is the WA which was Johnson’s great ‘oven ready deal’ that was presented to the voters at the 2019 Election and which, afterwards, Duncan Smith enthusiastically voted for in the House of Commons. That vote on the Withdrawal Agreement Bill was rushed through, but did he then join the calls for more scrutiny of “the fine print”? No. On the contrary he said “if there is anything about this arrangement that we have not now debated and thrashed to death, I would love to know what it is”.
So he fully supported it, but apparently didn’t understand its implications which it was his job to scrutinise and to which he now objects, and argued against further scrutiny. But – the final ridiculous twist – the £160 billion story isn’t really true anyway (it is based on the effectively zero possibility of every loan made by the European Investment Bank being defaulted on simultaneously).
It’s easy – almost obligatory - to mock this depressing farrago of stupidity and lies, but to do so misses its deeper significance, which is two-fold.
First, it is the latest salvo in the Brexit Ultras’ attempt to disown the entirety of the WA. In a post immediately after the 2019 election I flagged up the likelihood that they would do this, and have since recorded how it is becoming a growing, concerted campaign, which carries profound dangers of international pariahdom. It will intensify through this autumn, and reach a crescendo if there is no trade deal.
Second, and more broadly, it is the latest indication of the truly tragic fate that Brexiters have inflicted on Britain, whereby they insist that Brexit must be done or else the will of the people is betrayed, but also insist that any actual way that Brexit is done is a betrayal of the will of the people. It is a paradox from which there is no escape, and which dooms us to years, probably decades, of culture war.
Culture war ‘refugees’
One effect of that culture war is to produce ‘refugees’. Again, it’s been obvious from the beginning that Britain would suffer an exodus of people alienated by Brexit. Most obviously that means EU nationals in the UK who both for reasons of practical uncertainty and cultural affront no longer wish to be here. It also means UK nationals, and again for both economic and cultural reasons – those who see Britain headed for economic danger but who also feel politically exiled by Brexit.
Inevitably, those most likely to leave are those with the skills to do so easily. Anecdotally, including from my own experience, this has been underway since 2016 but this week saw the first hard evidence of a brain drain as regards UK nationals moving to the EU (though it is still partial, and it will be a while before we know the full effect, which will also be on emigration to non-EU countries; it can be expected that rates of UK emigration to the EU are now peaking, as after transition freedom of movement and associated rights will cease).
That this is a ‘brain drain’ – a term we have only rarely heard in the UK since the 1970s though in June 2017 I warned it was in prospect – is significant because it indicates that this is another economic cost of Brexit. But it also reflects some crucial issues in the underlying demographics of the Brexit vote in which both post-compulsory education and being economically active associated with voting remain, whilst the converse was true for leave voters.
The consequence of this has become the new ‘unsayable’ in the political correctness of Brexit. It means that those who actually have to deal with the practical consequences of Brexit do not greatly overlap with those who chose it. That can’t be a condescending comment to make, since Brexiters themselves constantly say that the remainers are the elite. And what does an elite do, other than run things? Of course, they aren’t for the most part plutocrats, tycoons or even big business leaders (all of whom, by definition, aren’t very numerous). Rather, they are the private and public sector managers, the professionals, scientists, entrepreneurs, academics, game designers, tech workers, musicians and so on.
In the main they aren’t high born – most probably have working-class parents, many may even consider themselves to be working-class – nor are they necessarily very well-paid. What Brexit has done is to spit in their faces. Not so much because of the Referendum result but because of the ‘winner takes all’ refusal to enact a compromise form to reflect the narrow result. And more than anything because of the constant insults since the vote. They are now open game for every taunt. They have been told every day for four years that they are metropolitan elitists, in the pay of the EU, exploiters of Bulgarian nannies or Polish plumbers, cry-babies, saboteurs, traitors, and enemies of the people. And, constantly, they are told that if they ‘love the EU so much’ then they should go and live there. So it’s not particularly surprising that they are doing just that if they can (or, as seems to be happening with the Civil Service, resigning rather than be used as “political punchbags”).
The culture war on the middle class
It used to be a cliché that any History exam paper answer on any period about any country could gain marks by reference to ‘the rising middle class’. Brexit has in effect declared culture war on Britain’s middle-class – or at least the most productive, active parts of it. It’s that which is leading skilled people to leave or to withdraw from public life. Yet at the same time it is they who are charged with actually dealing with Brexit since, of course, most of them are not in a position to emigrate or resign.
For it is not the archetypal Brexit-voting coastal town pensioner who thinks that immigration has gone too far, is fed up with being told what to do by Brussels and just wants his country back who has to manage social care provision for his peers. It’s his, again archetypal, remain-voting grand-daughter with a social science degree who works in local government, is desperate as she can no longer recruit EU workers, has had her hopes of further study in the Netherlands dashed and her relationship with her Dutch boyfriend jeopardised. The horrible achievement of the Brexiters has been to configure the grandfather as an ‘ordinary, decent person’ who has ‘taken revenge on his remoaner elitist’ grand-daughter.
By setting up that bogus – but vicious - cultural conflict, Brexiters have potentially set in train something much more dangerous. It’s obvious to anyone paying attention that we’re at the start of an unemployment bloodbath with, daily, new redundancy announcements because of Covid-19 and it’s going to be exacerbated by Brexit, especially when the transition period ends. Traditionally, the socially liberal middle classes were happy – or, if not happy, felt a moral obligation – to support through taxes the unemployed, as a kind of implicit social contract.
A broken social contract?
I’m not sure that will be so true anymore for those who, whilst not able to join the brain drain, now feel like exiles in their own country. Whenever some adverse effect of Brexit is reported social media posts immediately focus on who voted for it – so, for example, the current stories about Kent lorry parks, in a county where the majority voted for Brexit, are not viewed sympathetically. Stories about the concerns of people in Sunderland or Cornwall about the effects of Brexit get similar treatment. The response is invariably to point out, often gleefully, that a majority in those areas voted for Brexit so they must accept the consequences.
I don’t defend those sentiments: leave voters were misled, and worse, by the Referendum campaign and years of media poison and, anyway, the adverse effects of Brexit are not going to smartly target leave voters but spare remainers. Moreover, whilst remainers certainly have no obligation to ‘get behind Brexit’, they need not make their own contribution to prolonging the culture war. And, in any case, it would be a cruelly moralistic world if we all got punished for every mistake we made. But, defensible or not, those responses are real and can be read every day.
Perhaps they are not widely shared, and represent only a vocal sliver of remainer opinion. But if these sentiments are more extensively held, as I suspect they are, this means that the economically inactive and low-skill demographic and the ‘left behind’ regions that voted for Brexit will no longer be seen by the liberal middle class as deserving of support. It will be said that they have got what they voted for, and will have to live with it.
That, after all, is the logical consequence of the Brexiters’ ‘elitist’ narrative: they chose to say that leave voters were ‘the people’ and remain voters weren’t. They infected Britain with this culture war as a tactic to win the Referendum. So, harsh as such remainer ‘vengefulness’ may be, it does grow from soil cultivated by leading Brexiters. For that matter, the first part of my critique, above, of this vengefulness is what Brexiters insist to be the elitist condescension of denying that leavers knew what they were voting for.
Yet as I said in a tweet which – by my modest standards – went viral this week, the proposition that voters in 2016, when Brexit had no detailed or settled definition, knew exactly what they were voting for hardly sits easily with Duncan Smith’s claim that, equipped with the detailed Withdrawal Agreement in 2019, he didn’t understand what he was voting for.
Friday, 17 July 2020
Brexit gets more real, Brexiters get more unrealistic
The Border Operating Model
Much of this will apply whether that period ends with a trade deal or not (i.e. ‘no deal 2.0’). Given that, one might ask why it is only now, with less than six months to go, that these preparations are being communicated and in some cases being developed. For example, the £705 million border investment just announced was going to be needed anyway, as was the huge lorry park in Kent for which land has only just been purchased (it will be one of over ten similar sites). Moreover, despite Boris Johnson’s bluster and lies, it has been known for months that new processes, which were announced this week with the Border Operating Model, were going to be needed not just for UK-EU trade but for goods moving from Great Britain to Northern Ireland yet the facilities for this are only now beginning to be developed.
After all, it has been UK policy to leave both the customs union and the single market since January 2017. To have left matters so late is not just incompetence but, very likely, reflects the refusal to understand or accept that the result of that policy was necessarily going to entail increased border friction. That is politically significant because, recalling the circumstances of 2017-2019, it is at least conceivable that had the government admitted this, rather than pretending that a “frictionless” trade deal was possible, the closely-fought battle over a second referendum would have gone the other way.
Not only is it very late in the day, with significant doubts as to whether either the government IT systems or businesses will be ready in time, but also the new Border Operating Model is still very far from providing all the information that businesses will need in order to comply. For small trading businesses, in particular, this is an impossible situation in itself. Worse, as the full complexity and costs (£) become known some, at least, will simply cease to be viable, especially coming during the ongoing pandemic crisis. For those, large and small, that do continue these new costs will have to be absorbed in some way or passed on to customers.
The cost of customs
These costs – just as regards customs declarations, before any other costs are considered – will amount to £7 billion a year (£) to UK businesses trading with the EU, rising to £13 billion (£) when EU businesses trading with the UK are included. It’s worth reflecting on these figures. They compare to the approximately £9 billion net contribution the UK made to the EU in 2018. It’s not a one-off, but a recurring annual cost. And, to repeat, it exists whether or not there is a trade deal – it is nothing to do with any tariffs that may be levied or any other trade barriers that may arise.
The slogan for the information campaign is ‘Let’s Get Going’, which some businesses might reasonably take as a suggestion to relocate abroad while there’s still time. Individuals might take it as cue to go on holiday but if so they, too, need to be quick as they are now having it spelled out in more detail what Brexit will mean for them when they travel to the EU in terms of new border controls, health insurance, and pet passports.
For those who have been paying attention, none of this will be a shock – although seeing the practical details of what it means may still be a surprise. For others, it may be puzzling. For they were told before the Referendum and ever since that such Brexit effects were just Project Fear, then that Brexit had been done on 31 January with no obvious changes, and throughout that a deal would be negotiated which – although the ‘exact same terms’ lie has been long ago dropped – by implication would mean things pretty much carrying on as normal.
In fact, many of the things that remainers have long warned about are set to happen. Perhaps this is why the government resolutely refuse to describe them as being about Brexit (£) but, instead, as “the UK’s new start”, a new start which is said to bring ‘exciting opportunities’. What these are has not been specified and there is a reason for that, too: there are no exciting opportunities. It’s simply a self-inflicted change for the worse. A new start, perhaps, but the start of new barriers to trade and travel, new costs, new regulations and new bureaucracy resulting from leaving both the single market and the customs union. To coin a phrase, “only a madman would actually leave the market”. Britain is that madman.
What new madness is this?
The speaker of those words was, of course, Owen Paterson MP (whose explanation of the ‘madman’ comment is here; apparently ‘leaving the market’ and ‘leaving the single market’ are different things, so now you know) who has cropped up again this week, being listed as one of the contributing authors of a new report by the Centre for Brexit Policy (of which he is also the Chairman). Entitled ‘Replacing the Withdrawal Agreement’, this is being widely publicized, with coverage in the Daily Telegraph (£) and of course The Express, and a write-up by the Centre’s Director-General, John Longworth, on the Politico website. So it has the look of a concerted campaign.
The report itself, as its title suggests, propounds the extraordinary idea that the government should unilaterally create a new ‘Sovereignty Compliant Agreement’ to replace the WA and present it to the EU. If they do not agree, the UK would no longer regard itself as being bound by the WA. The report lists many ways in which the WA is not ‘sovereignty compliant’, including the Northern Ireland Protocol, and within that the role of the ECJ, as well as the ECJ’s role with respect to Citizens’ Rights and other matters, and the size – and by implication even the existence - of the financial settlement. Contained within all this seems to be a bemusement that the terms of the WA hold whether or not there is a trade deal. The authors – and David Davis in a tweet endorsing them – seem to imagine that the withdrawal terms were contingent on the trade deal, reprising the ‘row of the summer’ of 2017 that Davis famously threatened and then lost (or didn’t fight) which has rankled with the Ultras ever since.
It’s important to be clear – and the report is – that this isn’t about questioning this or that detail within the WA, it is that “the entire WA and Protocol are incompatible with UK sovereignty” (p.7). They want to revisit every single part of the Article 50 negotiations. But those negotiations are over. Unsurprisingly, a European Commission spokesperson immediately ruled out a renegotiation. The Longworth article gives full rein to the sentiments underlying this proposal: they are that the entire WA is a “poison pill” deriving from May’s lack of belief in Brexit, and the way her “government worked hand-in-glove with Remain elements of the British establishment and in cahoots with Brussels and foreign powers”. So Britain remains in “Teutonic chains” paying “reparations” and faces (yawn) a “Dunkirk” moment. It is a spectacularly vicious piece of writing.
Re-writing history
There are some very obvious problems with this proposal – even leaving aside the legal issues involved in breaking the WA - which involves a substantial re-writing of history. The UK signed the WA less than six months ago, as an international treaty. It was signed by Boris Johnson, following his much-trumpeted re-negotiation, and was put to the electorate as the ‘oven ready deal’ which was the centre piece of his re-election. At that election, the Brexit Party initially threatened to run a candidate in every seat if Johnson didn’t scrap the WA but then withdrew that demand and did not field candidates in Tory-held seats. John Longworth, then a Brexit Party MEP (he was later expelled from it), welcomed this change of strategy (£) on the grounds that “the Government’s exit agreement is Brexit and, whilst it has drawbacks, could result in a good deal”. No talk of a “poison pill” then. The Brexit Party itself garnered 2% of the vote and did not win any seats.
Thereafter, the WA Act was passed by a large majority in the House of Commons with support from ERG MPs, including Paterson. Did they not want the British Parliament to make its own decisions? It may be that some MPs did not read or understand it: if so, tough. They should have done their job properly. It may be that they believed it was all up for re-negotiation in the future: if so, tough. They were wrong. As for Longworth, as a, by then, Conservative MEP he also voted (in the European Parliament) for the WA and at the time said that as a result we will leave the EU and “become once again an independent, sovereign nation”. Now he says it was drawn up by “fools or knaves” and is incompatible with being “a truly sovereign nation”.
The proposition that Johnson had no time to re-negotiate properly is nonsense both because the time frames were of his choice and because he himself declared it to be “a great new deal” and the Conservative Party manifesto for the 2019 election also described it as such. The Conservative Party website explicitly said that those who criticized it (in context, this presumably meant Farage) were wrong and that the deal did indeed “take back control”. And even – to be far more charitable than is warranted – if none of that were true, it’s simply absurd to think that any country can conduct itself in such a manner as to rip up major international agreements within months of signing them because it hadn’t created an adequate process to consider the commitments it was making.
The Ultras have never accepted the WA
The roots of this latest outburst from the Brexit Ultras go deep, as regular readers of this blog will know. Immediately after the 2019 election I wrote:
“I suspect that many in the ERG will now be thinking that Johnson’s deal was only the bastard offspring of May’s ill-fated premiership and the ‘remainer parliament’, and feel no allegiance to it. They kept quiet during the election campaign, which required them to pledge support for Johnson’s deal, but that won’t necessarily last. For one thing, many of them are rebels by temperament, with a track record going back in some cases to John Major’s premiership, and ruthlessly indifferent to party loyalty or discipline …. With all that said, in the aftermath of his fresh election victory and on a scale that was so unexpected, it is far more likely that the ERG will keep their powder dry. But all that means is that even as Brexit ‘gets done’ they will hold on to the belief that the WA meant that ‘this was not really Brexit’ and will be watching keenly – in both senses of the word – for further ‘betrayals’.”
That suspicion has now proved correct – though how much overt support the current campaign against the WA will have amongst Tory MPs remains to be seen. It might be tempting to dismiss the CBP Report as the work of a fringe minority group of cranks. But that would be a very serious mistake. Over and over again, this group or one of its other incarnations has quickly seen its initially outlandish positions become mainstream, aided by the way that, as new research shows (figure 2), MPs affiliated with groups like the ERG and Leave means Leave (co-founded by John Longworth) get disproportionate media attention. The concerted way in which they are pushing this new message leads me to think it could rapidly gain traction.
Indeed, as I suggested in a more recent post, there have already been ominous signs that the government – and, implicitly, Dominic Cummings – regard the WA as ‘defective’, with the potential to lead Britain down the path to international pariahdom. I thought then, and still think, that even this government would not renege on an international treaty at least unless no trade deal is reached in which case the pressure to do so will intensify perhaps to irresistibility. The proposition in the CBP report, of course, is that whether or not there is a deal the WA should be ditched.
It is, frankly, an insane idea – politically, legally and diplomatically - but it grows from the long-evident way that the Ultras are never satisfied with Brexit, however hard and in whatever form. This is partly because the ideas they have of what is possible are total fantasy, and so as soon as they encounter reality, as they did in the Article 50 negotiations, they are doomed to be ‘betrayed’. But the deeper issue is that there is, actually, a desire to be betrayed, a desire always to be campaigning for something even more extreme, always to be insisting that Brexit is being denied them. In the most recent example, as in the past, this extends to denouncing as betrayal even things that they themselves have supported or voted for in the past. It is a pathology which has totally deformed British politics so that, now, at the moment of their victory, they are still complaining, still unhappy, still spitting out vitriol, still blaming remainers.
The prospect of endless Brexit battles
Clearly, there are significant and dangerous connections between these demands to scrap the WA and what is emerging about the effects of Brexit. For as these effects unfold the Ultras will never admit that all (or anything) that they were warned of was true. Instead, they will insist that the effects are the consequence of Brexit not having been done properly. In this way, they keep their dream and their pathological victimhood intact, whilst blaming remainers for the effects of the policy they themselves advocated. It is a form of politics that is deeply immature but, worse, totally destructive, endlessly revisiting the same battlefields until there is nothing left but dirt and ashes.
Its consequence is likely to be that even as we all suffer the many adverse consequences of the Brexit they forced on us with lies and fantasies we do not even get the consolation prize of an end to their complaints, their taunts, and their vicious slurs. Any kind of hope – as proposed in my recent post – of initiating a new post-Brexit conversation with and about Europe is dashed as a result. Any idea of healing domestic divisions is destroyed, because these Ultras do not want to heal divisions: they thrive upon them. So we get Brexit and we also get endless screeches of Brexit betrayed. They now call the WA a “poison pill” but it is their own poison, one which has now infected the entire body politic.
There’s still the slimmest of chances of an antidote – but unfortunately it rests almost entirely with Boris Johnson, though others may have some influence. Perhaps it could be possible to finally say to these Ultra Brexiters than enough is enough. It is simply insane for a country to keep putting itself through – or being put through – this torture. We’ve had years of it, and the Brexiters have got their Brexit. Every possible thing to accommodate them has been done. We can’t just go on and on revisiting it, lurching endlessly from one crisis to another in order to satisfy the whims of a tiny minority of politicians and commentators. We can’t poison every domestic and international well with their needs, their priorities, their insatiable obsessions.
In his article, John Longworth writes that “the battle to leave the EU is coming to an end. The battle for Britain is just beginning”, and invites Johnson to be (of course) a Churchill not a Halifax. But Britain is being destroyed by this endless desire of the Brexit Ultras to engage in battles. If we really must use these constant war analogies, with Brexit having happened, what we need from Johnson is an Attlee-like rebuilding of a battered, broken, and nearly broke country. It’s unlikely it is in his range, but if he can’t find it, and won’t go, then I fear that Longworth and his ilk will drag us all yet again into a pointless, debilitating, destructive conflict.
If so, there will be no victors, just as there have been none from Brexit. For the most remarkable and the most tragic thing about Brexit is how rare it now is to hear anyone – and certainly the Brexit Ultras - speak of it as something that gives them any pleasure.