As a private citizen, I have made up my mind. The current negotiations with the EU have become intolerable. Britain should walk away immediately. It should ask for nothing from Brussels beyond a smooth handling of the switch-over and common-sense treatment of technical issues such as landing rights, Euratom, and cross-border finance. It should withhold the exit fee until the EU has complied.Edit - just this once...
"The nightmare recurs. Call it the British Versailles. Theresa May is ash-white and exhausted after sixteen hours of cliff-edge talks. The grim ordeal lasts deep into the night on Friday, October 19.
Britain’s friends around the table at the Justus Lipsius – named after the stoic Flemish author of "De Constantia" – wince with pain and sympathy at the emotional spectacle. Yet they say nothing. The sum of the European Council is of a different character from its parts.
The document sitting before Mrs May spells out the terms. There is no bespoke deal, and no market access for services. The "Canada plus" model has degenerated into a deformed variant of "Canada colonial" with a permanent EU veto over larger areas of British law and policy. It is the worst of all worlds: a limited trade deal under draconian conditions. Medieval historians would call it suzerainty.
The ghastly error of British negotiating strategy is laid bare. Either Mrs May signs, or she walks away and invokes the sovereign fall-back option of the World Trade Organisation. But by then it is already too late for the WTO. The customs machinery cannot safely be activated in the four months left before the Article 50 process expires in March 2019. There is not enough time for the necessary global diplomacy. With Treasury warnings of a sterling crash and a "Gilts Strike" ringing in her ears, Mrs May buckles to overwhelming pressure.
It is a
diplomatic defeat of the first order. It brings about three quarters of
the alleged trend damage to UK economic growth suggested by Treasury
forecasts – 6pc of GDP over the long run under a free trade pact
– without securing the central objective of British parliamentary
self-government.
I say this as somebody who previously supported a Norway model, at
least for a decade until the UK had secured other trade deals and
become less vulnerable. Yet events have moved on and trust has been
shattered. As ex-EU commissioner Lord Hill told the House last week,
the status quo ante no longer exists.
The act of Brexit has itself changed the political dynamic in Europe, leading to a dirigiste, anti-market, anti-City, and anti-innovation lurch in Brussels – which must lower the EU’s economic speed limit over time, nota bene. It is therefore even more urgent for Britain to reassert self-government. “For an economy that is as dependent as ours on services, how could we in all seriousness subcontract all our rule-making to someone else?” he asked.
The leaked EU documents tell us that Germany and France will not allow the UK to have a Norway deal on anything like Norwegian terms because the UK economy is much larger and – in their mind – poses a much greater danger to the EU project. Our trading rights could be revoked at any moment without the normal protections of the WTO."
Note that
the alleged damage would be only slightly more at 8pc under a WTO
clean-break, an option that would still be possible (only just) if set
in motion today. So even if we accept the Treasury figures – as a
Gedankenexperiment – the difference between a WTO deal that upholds
British independence and a "Canada colonial" deal that ties down the UK
in perpetuity is barely noticeable when stretched out over fifteen
years.
Perhaps my dreams deceive me. Perhaps there will be a fudge of sorts. But what if the nightmare comes to pass? Paris and Berlin have not retreated one millimeter from their core condition: that there can be no deal on services unless Britain accepts the Norway model (EEA). The UK must swallow the single market package, with euro-judges, and open-door migration, and EU directives forever.
The torrent of leaked EU strategy papers from Brussels are a disturbing foretaste of the relationship that awaits the UK as a "demandeur", pleading for leniency from a position of psychological defeatism. They strongly indicate that the EU is not only insisting on an asymmetric deal that locks in its £80bn goods surplus with the UK, but also that Britain should be bound by sweeping extra-territorial control and should pay annual tribute for the privilege of its own infeudation. It is not a Canada option at all. Canada would have rejected such terms without compunction.
As we are
learning fast, even this transition is toxic. The EU’s text threatens
suspension of market access, the imposition of tariffs, curbs on banks,
and the loss of landing rights, if Britain drags its feet on
implementing new laws over which it has no control or is deemed to have
violated transition terms, with the EU acting as judge and jury.
This follows leaks of internal papers last week that spoke of Britain almost as a pirate state, so depraved that it might start poisoning its own workers in chemical plants or starting belching black coal smoke from power stations in order to gain a competitive edge after Brexit.
The text leaves no doubt that the EU aims to control Britain’s future tax policies, regulations, employment laws, and industrial regime, in fine detail – beyond any normal governance codes set by the WTO and the OECD – and that this deviant island should be watched, coerced, and brought to heel. These demands are self-evidently at odds with the supremacy of Parliament. In my opinion the language is indecent.
Some on the Remain side might say "I told you so", but such an argument will not carry them far in British politics since most voters ultimately put some value on such old-fashioned notions of country and national honour. The tribe of footloose "Anywheres" with a high reflexive loyalty to the EU idea, to borrow from David Goodhart’s sociology, makes up 20pc of the population, and most would probably display deep reserves of patriotism if push ever came to shove. Real "Global Villagers" with few qualms about the humiliation of their own country are just 3p
Perhaps my dreams deceive me. Perhaps there will be a fudge of sorts. But what if the nightmare comes to pass? Paris and Berlin have not retreated one millimeter from their core condition: that there can be no deal on services unless Britain accepts the Norway model (EEA). The UK must swallow the single market package, with euro-judges, and open-door migration, and EU directives forever.
The torrent of leaked EU strategy papers from Brussels are a disturbing foretaste of the relationship that awaits the UK as a "demandeur", pleading for leniency from a position of psychological defeatism. They strongly indicate that the EU is not only insisting on an asymmetric deal that locks in its £80bn goods surplus with the UK, but also that Britain should be bound by sweeping extra-territorial control and should pay annual tribute for the privilege of its own infeudation. It is not a Canada option at all. Canada would have rejected such terms without compunction.
Theresa May hopes to muddy the waters, arguing that the summit "breakthrough" in December refutes
the critics and shows that deals can be struck after all. The cold
truth is that she gave way on almost everything, and agreed to pay an
£50bn exit fee on EU terms, largely in order a secure a transition that
does not even allow Britain to strike fresh trade deals with the rest of
the world.
This follows leaks of internal papers last week that spoke of Britain almost as a pirate state, so depraved that it might start poisoning its own workers in chemical plants or starting belching black coal smoke from power stations in order to gain a competitive edge after Brexit.
The text leaves no doubt that the EU aims to control Britain’s future tax policies, regulations, employment laws, and industrial regime, in fine detail – beyond any normal governance codes set by the WTO and the OECD – and that this deviant island should be watched, coerced, and brought to heel. These demands are self-evidently at odds with the supremacy of Parliament. In my opinion the language is indecent.
Some on the Remain side might say "I told you so", but such an argument will not carry them far in British politics since most voters ultimately put some value on such old-fashioned notions of country and national honour. The tribe of footloose "Anywheres" with a high reflexive loyalty to the EU idea, to borrow from David Goodhart’s sociology, makes up 20pc of the population, and most would probably display deep reserves of patriotism if push ever came to shove. Real "Global Villagers" with few qualms about the humiliation of their own country are just 3p
My
question to Anna Soubry and the hard Remainers in Parliament is how they
imagine that Britain would function as a colony inside the EU single
market over time, and under the sort of regime that Brussels has in
mind. Is it not a formula for perpetual conflict? Is it not bound to
further poison relations between Britain and Europe, and to compound
error upon error?
The act of Brexit has itself changed the political dynamic in Europe, leading to a dirigiste, anti-market, anti-City, and anti-innovation lurch in Brussels – which must lower the EU’s economic speed limit over time, nota bene. It is therefore even more urgent for Britain to reassert self-government. “For an economy that is as dependent as ours on services, how could we in all seriousness subcontract all our rule-making to someone else?” he asked.
The leaked EU documents tell us that Germany and France will not allow the UK to have a Norway deal on anything like Norwegian terms because the UK economy is much larger and – in their mind – poses a much greater danger to the EU project. Our trading rights could be revoked at any moment without the normal protections of the WTO."