Rejoining EU, what’ll it take?

Rejoining EU, what’ll it take?

I attended the EU’s citizens panel on virtual worlds over the weekend. One of the most inspirational aspects of this event was the ability to meet so many people from across the European Union. I took the opportunity, to talk to some about how they felt about British re-entry. One Dutchman felt we hadn’t suffered enough, and that we needed to wait. One German was anxious that we re-joined so as to reduce his tax burden. Another very well-informed Dutchman, said he felt that British public opinion under estimated what the EU would ask to allow us to rejoin and one Finn, said his condition on us re-joining was that we be forced to enter FIFA competitions as a single nation. I think this was a joke, but he seemed quite upset about Finland’s record against the UK nations’ football teams.

My informed Dutch correspondent started by talking about the euro. Some of what he said particularly on the Euro was a bit worrying, but it’s a price worth paying if that’s what it takes. I suggested that the Swedish precedent on the currency is important and that there may be dangers to the EU in attempting to subsume another global reserve currency too quickly. I also wonder if those nations hosting cities that have replaced London’s international financial trading capability, really want to see the London market makers able to trade in euro instruments so soon. To me more importantly on the currency and macro-economic convergence, are the limitations entrenched in the ‘stability and growth pact’. Debt levels and deficits should be the result of a democratic mandate and not embedded in an unchangeable treaty; the need to breach the stability and growth pact limits during the pandemic is a proof point to this truth. Perhaps the EU member states will take the opportunity to amend the requirement of Stability and Growth Pact. We agreed that the other opt outs are all gone; the UK will have to forgo its financial rebate, our charter of fundamental rights exemptions and comply with and join the Schengen treaty.  These terms are acceptable to me. We need to start talking about them. …

Is Brexit worse than expected?

Is Brexit worse than expected?

I was talking to a friend, who asked if anyone had predicted the current chaos caused by Brexit, which led me to look for and find my personal manifesto for remain [ or on medium ], both published in May 2016

I got the economy, rights, and the loss of freedom of movement right. I was also right on sovereignty and remain so on peace and hope!

I didn’t predict the collapse of offshore fishing industry, food rationing, or an energy cost crisis or that we would have a trade agreement that didn’t allow people to come here to work, although on fish & food, others did. I, and I think most people, have a better understanding of what we’ve lost. I think we’ll be back. …

Bye Bye, Northern Ireland Protocol

The Tory Government have u-turned on how to negotiate Brexit; it seems that negotiation in good faith works. The UK Government and the EU have agreed on revising the Northern Ireland Protocol which dealt with issues relating to Northern Ireland’s trade with the EU and Great Britain. This agreement is being called in the short-term the Windsor framework. Sunak hails this as a great victory, claiming that Northern Ireland is unique in that it’s in both the UK and EU, and that is attractive to investors. Others were quick to point out that the whole of the UK was in that position until recently. There's more overleaf which can be viewed using the "Read More" buttton ...

You have one wish

You have one wish

Terry Reintke MEP, posted to twitter, asking what one change would her correspondents make to the EU. Terry is a co-president of the Green/EFA European Parliamentary group and a loud advocate for welcoming the UK back into the EU. She's looking after our "Star". She is also part of the Parliament's delegation to the EU-UK Parliamentary Assembly, which provides parliamentary oversight over the implementation of the Trade and Co-operation agreement. I wonder if it's met? She says,

Having to down select to only one reform, is tricky, as I say, in https://davelevy.info/big-changes-after-cofoe/ there’s a lot of great proposals involving extending competency into Education, Health and Energy, as well as other great . Good luck in getting it right, meanwhile it seems us Brits are changing our minds, I know you i.e. she will welcome us back, and it would help if we sought to do so with some respect and humility. I say more overleaf ...

Trade Friction and free movement.

I co-authored this, published at Brexit Spotlight by Another Europe.

Measuring the Brexit impact on the economy: the evidence that points to a self-inflicted calamity

It is little wonder then that the Conservatives are under acute pressure to revise their trading arrangements with the EU in order to re-open access the European single market. But it seems likely that – at least for the time being – Brexit ideology will not allow any serious recognition of the economic reality.    …

Froth about the Swiss style deal with the EU

Froth about the Swiss style deal with the EU

The Times broke a story (£) on Sunday that the UK would start to seek to improve relations with the EU and seek a “Swiss style” deal with the EU. This has caused some bad reactions in the parliamentary Tory party and the detritus of the Leave campaigns, with even that political zombie, Nigel Farage, offered us his advice.

A number of so-called experts add their voices on the impracticality of a “Swiss” style deals for reasons  of the size of UK economy, the absolute lack of will by the EU to repeat the Swiss treaty model and, for some, the democratic deficit that single market membership without the right to appoint CJEU judges, MEPs, commissioners and having a seat (and veto) at the Council would entail.

Opinion both expert and popular is now of the view that the UK must rejoin the single market; even some previously silent Remainers are finding their voices.

The Government spooked by the reaction from some of their backbenchers and Brexit supporters are trying to calm the political seas. The fact is that the language of a Swiss style deal is an attempt to linguistically soften the blow to the Brexit project. The idea, based on some truth, that the Swiss have more say than the rest of the EEA countries on sovereign issues is something that the Tory advocates of the single market are seeking to persuade rump Brexiters as acceptable.

Any road to change will be via the EU-UK Trade and Co-operation agreement. We will have a single agreement, unlike the Swiss, which will be developed to include the customs union, single market and CJEU supervision of regulatory compliance.

Image Credit: from wikipedia, cropped and passed through an ‘inks’ filter originally by John Fielding CC 2012 BY-SA …

Trebles all round!

Trebles all round!

This week, the Labour front bench, in a trinity of acts, supported the autumn statement and thus austerity in principle, criticised Tory immigration policy on the grounds of competence and repeated their promise to not join the EU, its single market, or adopt the EU’s freedom of movement in the next parliament (if they win).

The inconvenient truth is that the UK economy needs unskilled EU workers to do the work, It’s not the net fiscal impact that’s the issue. We have a massive labour shortage, we need migrants to do the work, it’s about the output. It’s not all highly skilled work as we define it either, it’s hospitality, agriculture, and health care. And today we define highly skilled as highly paid; even if only the highly skilled were desirable, they are not synonymous.

I have thought long and hard to find a way of compromising with those who want to pander to racists on free movement, and I can’t find a way of doing it while solving both the macro-economic problems and remaining true to our internationalist principles. All this “control immigration” or a fair “points based” immigration policy which involves stopping people is just pandering to racism.

Differentiating from the Tories on competence is morally vacant.

Accepting the debt fetishism at the heart of the Tories “New Economic Policy” is also morally vacant, and self defeating, you can’t cut your way to growth and austerity causes poverty, homelessness and is killing the NHS. Labour’s next manifesto and government must offer hope. They will lose votes from Corbyn’s voting coalition, and as far as I can see it’s deliberate.

You’d think they’d learn that voters always have somewhere else to go! Some demographics, historically Labour voters, are choosing to vote Tory.  …

We want our star back

We want our star back

The Rejoin EU movement held a national march today, the Evening Standard reported that it was well attended by 15,000 people, and @femi_sorry who took a film of the march and posted it on twitter at 12 times speed, so not as large as others.

I’d love to thank the interpretive dancers performing to ‘ode to joy’, the car and van drivers that supported us, and the one builder who told us to “fuck off”. …

Brexit’s over, it’s just about the mopping up now

Brexit’s over, it’s just about the mopping up now

Phil, of a different Bias, has released a new video, spurred by his observation that the Brexiteers have retreated from “Take back Control” to “Save the Pound” because if we were to rejoin, they think we’d have to join the Euro. This probably isn’t the case. Phil points out that Sweden has agreed to join up and did so in 2002, but hasn’t yet done so and has no plans to do so. This article looks at the issues of economic policy governance, the opt-outs, trade friction and immigration. It concludes with the proposal that, "The Truss Government was an ERG Govt, it’s fall marks the end of Brexit..", although we are unlikely be allowed back in until we can offer a substantial and believably long-term majority in support of re-joining the EU/ There is more overleaf ...

Where’s prudence gone?

Where’s prudence gone?

While reading Simmon Hannah’s “A party with socialists in it”, I made a note to talk about Corbynism and Modern  Monetary Theory. I am writing an omnibus, review of that book, but think that a further note on MMT and its role in Corbynism, and the insights and weaknesses it brings to today's crisis might be appropriate. In 2015, Corbyn flirted with MMT but by 2017, McDonnel, Meadway and Wren Lewis had won control of the Party’s economic agenda. The rest of this article looks at the bond market disruptions, FX and the balance of trade, the threat to pension funds, and the extent to which MMT has some useful insights. For more, check out overleaf behind the "Read More" button. ...