Single market, customs union and a poison pill.

Single market, customs union and a poison pill.

In an article, Starmer prepares for parliamentary battles over imminent EU ‘reset’ bill, jessicaelgot suggested that there is movement on the “red lines”. It is clearer on reading that this is an attempt to accelerate UK agreement to the currently on-going trade negotiations by increasing the powers of the relevant ministers.

The article uses the phrase swiss-style agreement which is highly unlikely to succeed and at the best is tone deaf as to the EU’s needs and wants.  

UK in a changing Europe, document what they see as the timetable and goals of the current reset negotiations.I see them as optimistic, and everyone seems to forget that the EU’s starting point is full implementation of the withdrawal agreement and Windsor framework; there remain, even 18 months after the general election, eight infringement proceedings unresolved.

It’s sort of interesting that they think they need new language, but to me, they have not yet changed their mind.

I also see this as a means by which the Government deflects the internal Labour Party pressure towards joining the Customs Union by posing, parts of, the single market as an alternative. It is disappointing to see so many seeing the Customs Union as sufficient advance, but the UK economy and people need and want membership of both, including, reciprocal, free movement of  people.

Labour should join the customs union and single market now and promise to rejoin the EU in its next election manifesto.

Various news sources, including the Brussels Times, report that EU is demanding a “poison pill” clause in further agreements, to make the cost of revoking the new treaties exorbitant. This should have been proposed by the UK side, and without it negotiations would stop.

I predict they won’t until they abandon the strategy of triangulating against reform and that will take significant personnel changes in the Government.

Image: from PIxabay, their licence …

The single market

a greek market, on a back street in the sun

The number of senior labour movement figures have argued over the Christmas break that the UK should seek to rejoin the European Union’s customs union. They leave out a call to rejoin the single market.

The customs union relates to tariffs, the single market governs common non tariff import barriers on goods & services. The single market also deals with freedom of movement of capital and labour.

I question whether joining the customs union is sufficient to deliver the increased growth that is proponents and the country seems to want.

Obviously, the single market opens the issues of free movement of people and trade sovereignty (as does the customs union). Now that it’s understood, British people seemed to want to return to the free movement and there is no national sovereignty in international trade.

I believe that the UK should join the customs union and single market now, and that Labour should put a rejoin promise in the next manifesto.

The near-fetishist concentration on in trade and economics suggests that most of our parliamentarians are not yet ready to be good citizens within the European Union. It is necessary that they change their minds, and Labour must play its part bringing this about.

The UK was and will be a better place to live within the European Union. …

The Draghi report on European competitiveness.

The Draghi report on European competitiveness.

I have been trying to get on top of whether the Draghi Report on European economic competitiveness is really a game changer. Without study it seems to be a call for more EU (as opposed to member state debt. I am of the view that within the UK, there needs to be transfer union i.e. that borrowing and wealth from London needs to be shared with other parts of the country.

I found this article from the FT, which is headlined, “Europe can learn fiscal lessons from the UK on how to achieve its goals”, and subtitled, “ A co-ordinated reform agenda is crucial if the EU is serious about becoming a climate leader and geopolitical player”, written by Draghi. On diigo, I highlighted the following lines,

The UK government has chosen to significantly raise public investment over the next five years and has adopted precise rules to ensure that borrowing is used only to fund this investment. … Moreover, in order to ensure the quality of spending, transactions will be validated by independent authorities.

To which I reply, “Of course Draghi would argue for independence. The near cultish following with which his recent comments have been greeted is based on the desire by politicians and capitalists to ensure the macroeconomic policy and regulation is outsourced to non-democratic agencies. Central bankers underestimate the ability of democracies to present a wisdom of crowds, even on investment decisions. An example of this is the EU’s horizon investment valuation process, which ranks proposals and select winners from a competition. The technocrats and democrats, particularly representative politicians also underestimate the value that citizens assemblies may bring to these decisions.

Draghi continues,

“A more efficient use of Europe’s high private savings rates requires integrating its capital markets. To redirect private investment from mature industries to more advanced sectors will hinge on completing the single market. … innovative firms in fast-growing sectors such as digital services will not be able to scale up and attract capital. And, as a result, investment will remain locked in old technologies.”

Is this true? Perez, whose theories I summarise on my blog,  argues that the declining profit of now legacy industries will ensure that investment goes to new innovative industries. Also, like most Draghi is betting on digital services as the driver; Perez’s theories suggest that IT is now reaching its stagnation stage and will be replaced although we maybe in a stage where the political power of legacy capitalism is too powerful to be overcome. This is why corporate lobbying power is so destructive to human progress. …