Latest thoughts on Brexit: Its Decay, Italy (and Ireland), Cars, and Giving up British Citizenship

The slow decay of Brexit: a Rule-Taking Country

I don’t mean that the UK will stay in the EU. I fully expect it to formally depart next year. If the poor performance of the UK economy compared with the Eurozone continues, I also expect the UK to rejoin in a few decades, when the growth divergence is not just in figures, but felt in everyday life, such as when people find it too expensive to travel in Europe or buy goods from Europe; if they do travel they notice that everything seems expensive and there are more nice things abroad than at home, while European tourists will seem to have huge amounts of money to throw around.

It might or might not work out like that, but the point here is that the UK, behind headlines about soft versus hard Brexit, is moving towards an ‘alignment’ with the single market and the customs union: not formal membership but keeping nearly all the rules. The short term losses in trade from leaving both the single market and the customs union, along with the Republic of Ireland/Northern Ireland border question, have combined to make de facto membership of the single market and the customs union inevitable. Hardening the border at all between the two parts of the island of Ireland is economically disruptive and very threatening to a Northern Ireland peace settlement, in which the Irish nationalist-republican side in NI can live with being part of the UK as long as the North and the Republic are unified via the EU and associated commercial agreements.

This is what I get from following Eurosceptic sources when they get round to proper conversation and analysis, rather than fighting the remain-leave battle. Brexit outbursts of premature triumphalism over Italy, or demands to abolish the upper House of Parliament because the Lords uses its constitutional rights to pass amendments they don’t agree with back to the Commons for the final decision, are a distraction from the collapse of full Brexit.

The idea of a ‘no deal’ walk-away from the EU has been abandoned and inevitably the UK will accept single market/customs union rules while the government makes a show of leaving everything. Because the UK very probably will not be a formal member of the single market (though there is a possibility of joining the EEA which would mean formally staying in the single market), it will be able to reduce migration from the EU (not a great thing to my mind), which will bring joy to a large part of the population (particularly the Brexit-voting part). No doubt the reality of moving to what Jacob Rees-Mogg (a well known, hard-Brexit Conservative MP) calls ‘vassal state’ status will be covered over with that issue, but the reality is the UK will accept rules for customs and economic regulation made by the EU indefinitely.

‘Indefinitely’ means ‘permanent’ though this is being covered up by talk of ‘transitional periods’. Alternatives to this have collapsed with the failure of ‘no deal’. The New Hard Brexit is to accept aligned rules on goods, but not on services, with the UK’s exceptional role in financial services in mind. However, there is no indication that the EU will give this kind of deal, despite the Brexiteer posturing about the UK being too powerful to push around, which has clearly been shown as empty by negotiations so far.

Over-excited Brexiteers getting Italy wrong (and Ireland)

So a new government formed without anti-Euro currency finance minister. 5 Star and the League (the coalition partners) are not impeaching President Sergio Mattarella. The idea they would is a bit of a joke anyway, as it would require the agreement of the Supreme Court and a vote of both chambers of the Italian parliament to achieve an impeachment. The issue behind the non-impeachment was that Mattarella had vetoed an anti-Euro candidate for finance minister: Paolo Savona (who now has another post in the government).

Some relevant facts here. 1. Italian presidents have the constitutional right to veto ministerial nominations and have frequently done so before 2. Recent Italian opinion polls show support for the Euro at over 60% 3. Neither coalition party ran on an anti-Euro manifesto.

Claims that Mattarella is some pathetic weak instrument of the European institutions who ordered him to keep Savona out are themselves absurd. 1. There is a shared preference of Mattarella, the Italian public, and European institutions for staying in the Euro 2. Mattarella is from a political family in Sicily, which went anti-mafia and Sergio Materall’s brother, Piersanti, who was head of the regional government, was assassinated by the mafia as a result. I think we can say Sergio is a character of substance to stay in politics after that.

Regarding constitutions and democracy, constitutions establish limits on the power of temporary majorities through rules and institutions designed to embed basic rules about rights and the use of power. This is why democracy of a kind worth having is referred to as ‘constitutional liberal democracy’. You cannot both be in favour of constitutional democracy and complain when constitutional constraints express themselves in the action that Mattarella took, which is well within his formal powers and previous precedent.

Many of the triumphalist Brexiteers in the UK, who were shouting about Mattarella as an enemy of democracy who was about to be punished, are admirers of the US ‘constitutional conservatism’ which, on the face of it, advocates very strict restraints on the actions of elected bodies according to the supposed original meaning of the constitution. You can’t have it both ways. And even if you think democracy means the unrestrained right of a majority, there is no majority support for leaving the Euro in Italy and no manifesto mandate for the coalition to leave the Euro.

You could argue that Mattarella made a mistake about perceptions and had been outplayed, that had some plausibility for a few days but does not look so correct now. Mattarella has got what he wanted and will not be impeached. It’s true that the League has strongly increased its support since the election in opinion polls, but that mostly precedes the ministerial crisis. Brexiteers are still clinging to an attempted triumphalism over Italy. The Italians are standing up to Brussels, which supposedly is a lesson to Britain to be tougher in Brexit negotiations. Well it is a bit soon to say whether the Coalition in Italy represents Eurosceptic triumph and hard to see what this has to do with Brexit negotiations.

What loud mouthed Brexiteers in the UK say about Italy is in some ways not very important, but what is important is the presumption to know more than they do and circulate false assumptions about European politics in the UK, which in turn distorts our debates and assumptions, and which can then pop up amongst Proper centre-right journalists and commentators Who Should Know Better.

Something similar has emerged with Brexiteer attitudes towards Ireland’s attempts to keep an open border with Northern Ireland. Manipulated by the EU institutions with naive and incompetent leaders (rather reminiscent of old prejudices about the Irish being stupid) has been standard opinion, and then there was the claim by a senior Conservative politician, Iain Duncan-Smith, that the Irish position is to do with a forthcoming presidential election. 1. The Irish president has no political powers whatsoever 2. There may not be an election, since no one has announced a wish to run against the incumbent so far and it may suit the major parties in Ireland to leave it like that. Funnily enough all those stupid naive Irish leaders manipulated by the EU have given Ireland much greater economic growth than the UK. What an economic miracle there would be in Ireland if they were as clever as Brexiteers!

It’s difficult to stop Brexiteers from 1. using simplistic rhetoric about majorities and Will of the People to suit their immediate anti-EU goals without concern for consistency and the values of liberal democracy 2. Living in an imagined world where European politicians they disagree with are stupid and/or slaves of the European Commission, conspiring against democracy. These views should be challenged and left with the true believers, away from informed debate.

Brexiteers and German car companies

UK enthusiasts for leaving the EU have a strange obsession with German car makers. They export so many cars to the UK, they will MAKE the German government which will MAKE the European Commission give us the exit deal we want. This has been going on from all kinds of people ever since the Leave Referendum (maybe during the campaign as well, but I missed that). It is an expectation that has obviously been falsified by the course of negotiations in which the EU has got 10s of billions of Euros from the UK to even start negotiations (though the UK tries to pretend otherwise) and has refused the kind of market access the Brexiteer enthusiasts assumed they would get automatically thanks to Volkswagen, BMW, and Mercedes (!).

Even today, listening to the Telegraph Brexit podcast, I heard Christopher Hope (the highly affable and mostly reasonable chair) keep on about how German carmakers were going to make Brussels gives the UK what it wants. The guests, pro-Brexit people from the Telegraph, were clearly bemused as they had been explaining how the UK was going to remain ‘aligned’ with the single market. Clearly if the UK is already de facto accepting the ‘indefinite’ (i.e. permanent) application of single market rules, German car makers have no incentive to MAKE Merkel give the UK another deal preferable to hardcore Brexiteers.

Of course the saddest expression of this muddled thinking came from Boris Johnson (the notoriously attention seeking and inconsistent foreign minister) when he claimed Italian prosecco wine manufacturers would make Rome/Brussels give the UK a Brexiteer-friendly trade deal. It turns out demand for prosecco in Italy is greater than supply and the makers can easily live with reduced demand in the UK.

The German car industry is of course much larger and not dependent on the supply of a particular kind of grape. Still, just one seventh of German cars are sold in the UK. Now obviously it would be very bad news to lose one seventh of the market, but there are no circumstances in which German manufacturers would sell no cars in the UK, the drop would never be as great as one seventh. Sales of German cars are already declining in the UK and given weak UK economic performance compared with Germany, the decline is likely to continue. Anyway, it should now just be really bloody obvious that German car manufacturers have not united to force Berlin/Brussels to accept a hardcore Brexit agenda! There is clearly a very big stream of reality distorting national self-obsession amongst Brexiteers who believe this kind of thing. Well it has now been shown to be thoroughly incorrect, let go now!

Brexit Bureaucracy and Renouncing UK Citizenship

UK nationals living outside the UK in the EU are applying for citizenship abroad to retain rights they lose after Brexit. Some of these countries forbid dual citizenship so UK citizens are renouncing UK citizenship. The Home Office takes the opportunity to raise fees for renouncing citizenship, though evidently its revenue is already increasing because of charges for renouncing citizenship. Didn’t Brexiteers tell us Brexit would reduce state bureaucracy?

“10 things you didn’t know about World War I”

That’s the title of my weekend piece over at RealClearHistory. The structure of the pieces, if you’ll remember, is Top 10 style, but I try to throw some more in-depth stuff into the mix, too. An excerpt:

3. World War I showed the world what a united Germany could do. Germany was formed in 1871, making it almost 100 years younger than the United States and much younger than France and the United Kingdom. Prior to the formation of Germany, which came about due to Prussian diplomat Otto von Bismarck’s genius machinations, observers and thinkers throughout the world penned works speculating on what a unified German-speaking world would do, politically, economically, culturally, and militarily. Rome’s decentralized barbarian enemies were from Germania, the Holy Roman Empire (which was neither Holy nor Roman nor an Empire), the Hanseatic League, and the German Confederation which all tried, in vain, to do what Bismarck did. Many of the attempts to unite Germany were foiled by French, British, Austro-Hungarian, and Russian statesmen because of fears that a united Germany would come to dominate Europe and upset the balance of power that European elites had come to rely on as their foreign affairs blueprint. They weren’t wrong.

Please, read the whole thing.

Nightcap

  1. The new age of great power politics John Bew, New Statesman
  2. Before We Cure Others of Their False Beliefs, We Must First Cure Our Own Christopher Preble, Cato Unbound
  3. Libertarians (FDP) ruin coalition talks in Germany Christian Hacke, Deutsche Welle
  4. The Rich You Will Always Have With You Brandon Turner, Law & Liberty

Towards a genuinely Inclusive, Liberal, and Open Global Agenda

The recent past has been witness to the increasing rise of ‘economic-nationalism’, anti-immigration policies, and increasing xenophobia. Countries which in the past have welcomed immigrants, and have been protagonists of Free Trade and open borders, while immensely benefiting from the same, are becoming more and more insular. While this point got strongly reiterated by the election of Donald Trump. Apart from the US and UK, many of the EU member states and Australia are also becoming more and more inward looking.

Germany and Canada have tried to develop an alternative narrative while being open to immigrants, and opening their doors to refugees. Justin Trudeau in Canada, like Angela Merkel, deserves immense credit for exhibiting courage and conviction and not capitulating before populist and ultra nationalist sentiments.

Both Trudeau and Merkel have opened their doors to refugees, with Trudeau opening his country’s doors to nearly 40,000 Syrian refugees. After the US imposed a ban on immigrants from certain Muslim countries, he tweeted:

“To those fleeing persecution, terror & war, Canadians will welcome you, regardless of your faith. Diversity is our strength #WelcomeToCanada.”

Angela Merkel, Chancellor of Germany, in spite of scathing criticism for her decision to admit over 1 Million refugees, since 2015, from Syria, Iran, and Afghanistan, has stuck to her guns. In an interview, the German Chancellor stated:

“It was an extraordinary situation and I made my decision based on what I thought was right from a political and humanitarian standpoint.”

The rise of the extreme right AfD, which emerged as the third largest political outfit, and which Merkel managed to beat by a lesser margin than usual, has been attributed to Merkel’s open door policy.

Along with Macron and Trudeau, one more leader who is trying to offer an alternative narrative is the Mayor of London, Sadiq Khan, who has started a campaign, ‘London is Open’. Said Khan in his message:

…Many people from all over the globe live and work here, contributing to every aspect of life in our city. We now need to make sure that people across London, and the globe, hear that #LondonIsOpen… 

Not restricted to any ideology or country

It would be pertinent to point out that while the rise of right-wing leaders like Trump and AFD in Germany is cited as one of the reasons for this growing insularity, even left leaning leaders have been equally inward looking, when it comes to economic and trade policies. One thing which was common between Trump and Bernie Sanders was their economic policies, which found resonance with the working class.

Not just Trump

While Trump has emerged as the mascot of ‘insularity’ and economic nationalism, it must be pointed out that not just the US, but other countries which have benefited from immigration, to have tended to look inwards on important issues.

Australia, which has opposed Trump’s withdrawal from the Trans Pacific Partnership TPP and has repeatedly spoken in favour of an ‘open’ Indo-Pacific, has brought in some tough laws to oppose immigration. This includes the abolition of the 457 Visa (for skilled migrants), replacing it with a new visa program which is far more stringent, and will make it tougher for workers from other countries.

Commenting on the abolition of the Visa, Australian Prime Minister Malcolm Turnbull stated:

“The migration program should only operate in our national interest. This is all about Australia’s interest.”

The second point to bear in mind is that some countries have spoken vociferously in favour of trade agreements, and open borders, but have played it safe on important human rights issues and immigration. This includes not just Syrian refugees, but more recently the Rohingya Issue. If one were to take the case of ASEAN for instance, a number of member states including the Chair for 2018, Singapore, have argued in favour of economic openness, and were critical of the US approach towards TPP. Yet, they have been cautious on the Rohingya Issue, not wanting to rub Aung San Suu Kyi the wrong way.

Conclusion

In conclusion, there can  not be a selective approach, countries which seek to benefit from globalization, need to be open to immigrants and at times shoulder onerous responsibilities. After all, it is not just immigrants who benefit economically, but countries which they have migrated too also benefit from their skills and productivity.

Secondly, an enlightened, liberal agenda cannot just be restricted to economic issues, important human rights issues, can not be obliterated and must get the attention they deserve.

Third, it is pointless, to blame any one country or ideology for insularity, everyone shares collective responsibility for the same.

BC’s weekend reads

  1. Could Kurds hold independence referendum this year?
  2. Meet Germany’s Alt-Right
  3. Tolerated theft, suggestions about the ecology and evolution of sharing, hoarding and scrounging [pdf]
  4. It’s time for some game theory, United Airlines edition
  5. Mormon Transhumanists