singlemarket – davelevy.info

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. …

Thoughts from GMB 25 on privacy law

This article is a summary, I say, over the last week, at GMB Congress, three reasons to rejoin the EU or at least the single market have, in my opinion, been exposed. These are the highlighting of the GDPR as defence against AI, the second is the new EU Pay transparency directive, together with the EU's AI Act. The full article is overleaf ...

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. …