On the economics, about micro-, macro- and the economics of ideas.
Is Labour about to ‘press reset’ again

I reviewed “Pressing Reset” , the recent Fabian pamphlet on the state of play within the mainstream of the Parliamentary Labour Party on relations with the EU. This was published on the Chartist Magazine’s website. I conclude that the Parliamentary Labour Party is still not ready to abandon cherry-picking, and abandon Starmer’s red lines.
In my review, I highlight Stella Creasy’s contribution where she makes a cogent argument for a Swiss style deal, made easier by the EU having recently updated the Swiss agreement. She recognises that to make progress, the UK is going to have to give something on freedom of movement. Liam Byrne makes an argument for an Economic Security Union, which he claims is definitely not just the single market renamed. It is in fact more comprehensive than the single market . In the review, I say, “Byrne argues that a broader agenda will make agreement easier and that the UK must stop asking for favours and offer a true partnership.”. This is a contribution from a heavy weight to be welcomed.
The final two chapters look at what’s happening in the EU. Jannike Wachowiak of UKICE writes about what the EU wants. He starts by saying that, “Brits spend an inordinate amount of time discussing what they want from the EU. They spend far less, however, pondering what the EU and its member states might want from them.” In the review, I say, “Wachowiak argues that the consensus within the EU is that the TCA works well for them. He also argues that the EU still maintains an opposition to cherry-picking, and while there is some evidence that this is not as strong as it once was, it is clear that the EU will not agree to a better deal for an ex-member than that offered to other members and members of the EEA. Again, he argues the UK needs to put more on the table, and it needs to be what the EU and its member states want.”
As part of my conclusion, I say,
From reading the pamphlet, I have heard that some argue that we can’t rejoin, because the EU has changed. This is true, but it seems we haven’t. We are still acting like a nation of shopkeepers, and unless we raise our ambitions, the EU is planning in further changes which will make it even harder to participate as a partner 3rd country or even as members unless we decide that membership of these programmes is more beneficial than a Scrooge-like analysis of the costs and benefits of each programme.
Also,
… the biggest disappointment in the pamphlet. If Labour doesn’t lead [opinion] and drop its red lines, the cost of Brexit will increase, and the relationship will stagnate as the EU concentrates on other things.
Jannike Wachowiak and Jude Kirton Darling’s articles make it clear that we need to put more on the table and see the EU as a coalition of values and culture rather than exclusively a trade club or a defence market.
Despite all this, starting conversations about contributing to the cohesion fund and HMG’s commitment to legislate to allow dynamic alignment are hopeful.
However, without pressure, this government may make verbal compromises with its red lines but express no desire to genuinely commit to the European Union and thus the EU may just move on, addressing the issues that are more important to them. …







