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The 2021-2026 EU UK Trade war

by Frank Schnittger Sun Oct 11th, 2020 at 02:57:07 PM EST

The 2021-2026 EU UK Trade war was an unprecedented event in post WWII European relations although it did have some minor antecedents in European economic wars prior to that - such as the 1932-38 Anglo-Irish economic war. It ended only after the near collapse of the UK economy and led ultimately to Scottish Independence and Irish reunification.

Relations between the UK and EU had been deteriorating ever since the 2016 Brexit referendum culminating in the breakdown of relations in early 2021 following the UK adoption of legislation which explicitly broke the "oven ready" EU UK Withdrawal Treaty which had been ratified in January 2020 following a general election fought and won on endorsing its terms.

The UK government claimed its Internal Market Bill was necessary to avoid "a border down the Irish sea" and a potential food blockade between Britain and N. Ireland, although its terms did not actually deal with that issue - a point brought into sharp focus when Ed Miliband challenged the Prime Minister, Boris Johnson, across the floor of the House of Commons, to show him which provisions of the Bill dealt with a claimed risk of a food blockade of N. Ireland. Boris Johnson declined the offer of Mr. Miliband's speaking time to clarify the issue.

The EU, for its part, initiated infringement proceedings against the UK, before the ECJ, as provided for in the Withdrawal Agreement, and sought an early declaration on the legality of the measure given the urgency of the matter. It did not, however, walk away from the trade negotiations, aspects of which were said to be making continuing progress.

It was in this context that the outcome of the December Summit of the European Council came as something of a shock. Riven on many other issues, and chiefly about the implementation of the June 2020 budget and Covid-19 recovery plan agreement, the European Council was desperate to show a united face on Brexit, and particularly on what President Macron described as "the outrage" of the UK proposing to break a treaty it had only so recently agreed, signed, and ratified.

Consequently the Council agreed by consensus that the provisions of the WTO should not apply to a "rogue state" and that a 10% tariff on all imports from the UK should apply from January 2021 if no trade agreement had been agreed by then, subject to the ECJ finding that the Internal Markets bill and subsequent UK legislation represented a material contravention of the "good faith" and substantive provisions of the Withdrawal Agreement.

Proponents of the measure pointed out that a 10% tariff was in fact much less than the 50% WTO tariff that would apply to some EU exports to the UK under WTO rules, such as, for example, Irish beef exports to the UK, which represented over 50% of all Irish beef exports. They also pointed out that the 10% tariff did little more than cancel out the competitive advantage UK exporters had achieved through the devaluation of Sterling.

They further pointed out that the WTO was effectively a moribund institution, without a Director General, and without a disputes resolution process following the refusal of the Trump administration to appoint judges to the WTO trade disputes resolution court and to agree on a new Director General.

Reaction in the UK was outraged however, as Brexiteers had always assumed they could fall back on WTO terms, come what may. Quite why they thought the EU should comply with all their Treaty obligations while the UK reneged on theirs, is less than clear. Prime Minister, Boris Johnson, immediately announced a 10% retaliatory tariff and noted that, as the UK had a trade deficit in goods with the EU, this would hurt the EU more than it hurt the UK. Tabloid reaction in the UK was gleeful, with many popular newspapers stating that the PM had "wrong-footed" the EU and shown that the UK was not going to be bullied by "the evil empire".

Behind the scenes, however, negotiations were said to be making progress on the outstanding issues of fisheries, state aid, human rights, and the Northern Ireland protocol and some official expressed optimism that these would be resolved long before any tariffs would ever have to come into effect. The European Council declaration had, they said, injected some much needed urgency into the process.

At a political level, relations continued to deteriorate however, with an increasingly hostile tone in exchanges between EU and UK politicians as the Internal Markets Bill and other legislation breaching the Withdrawal Agreement made its passage through parliament. The European Parliament, for its part, called on the Commission to suspend negotiations until such time as the UK Government halted the parliamentary process, on the grounds that merely proposing such legislation breached the "good faith" provisions of the Withdrawal Agreement and that threats of illegal action should not be allowed to become bargaining chips in the negotiations.

Critics of the EU pointed out that a harsh reaction to the UK measures was about the only thing the EU could agree on at that time, with the COvid-19 pandemic still ravaging the continent, fraying relationships, and causing rising tensions over the continued failure of the EU to implement effective counter-measures, including the June 2020 budget and pandemic recovery agreement.

Nevertheless, it was still widely expected that a trade deal would ultimately be agreed, in time for agreement in principle at the December EU Council summit. Behind the scenes, however, the negotiations were once again deadlocked, with both sides accusing the other of intransigence. Michel Barnier, in particular, became the subject of UK ire, with many claiming he had "an animus" against the UK.

Against this backdrop, his letting it be known, unofficially, that he would be retiring on the 1st. January 2021 may not have been helpful, encouraging UK negotiators to believe that a less doctrinaire EU approach might become apparent after that date. Some thought he would be under huge pressure to get a deal done as the crowning achievement of his political life. In reality, he was operating within the terms of the negotiating mandate he had been given, and was conscious that any deal he agreed would still have to be ratified by 27 member states many of who had vital national interests at stake in the negotiations.

Whatever the reasons, the failure to agree a deal before the December summit still shocked the markets, with most expecting that the relatively minor differences still outstanding at that stage would have been long resolved. Some blamed the Johnson/Gove/Cummings obsession with "last minute negotiations", long overnight sessions, and cliff hanger climaxes as being responsible for the impasse and speculated that the strategy might be to "wear down" the aging EU chief negotiator.

On the EU side the obsession with legal clarity often seemed to obstruct the "constructive ambiguity" of the solutions presented by the UK side. Given the way in which the UK government was already overturning some provisions of the Withdrawal Agreement, there seemed to be an absolute obsession on the EU side that every detail had to be nailed down with total clarity before anything could be agreed.

The reaction of EU leaders at the December summit to the failure to agree a deal was one of consternation and utter frustration. Under huge pressure from every side over their continuing failure to manage the pandemic and its economic effects more effectively, they were determined to take decisive action in response to the UK's continued breach of the Withdrawal Agreement. The ECJ's timely declaration that the UK's Internal Market and other legislation was in breach of the Withdrawal Agreement provided them with the legal cover they needed.

Announcing a 20% tariff on all imports from the UK, they noted that the earlier 10% tariff proposal had already been eroded by Sterling devaluation, and that the extra revenue was needed to compensate farmers and businesses due to be impacted severely by the UK's retaliatory tariffs. As an olive branch, they offered the UK a 90-day extension of the transition period to enable ratification of any agreement provided one was reached by the end of 2020. Otherwise the tariffs would apply from January 1st.

By all accounts this decision elicited alarm and despondency within the UK government. Although the public response was one of invoking the "Dunkirk" and "Battle of Britain" spirit, there was a growing realisation that a deal of some sorts had to be done before January 1st. For one thing, the UK was not ready to implement a comprehensive tariff regime at that point. Striking an uncharacteristically conciliatory tone, Boris Johnson announced that the UK would not be retaliating to the "inflammatory and provocative" EU 20% tariff decision, and would continue to seek an agreement "in the best interests of all".

There was huge UK frustration when the EU negotiation team refused to meet over Christmas to resolve the impasse. Pointed references to Barnier's age and impending retirement were not eschewed, and the "laziness" of EU negotiators compared to their UK counterparts was noted by some observers apparently oblivious to the fact that the negotiations had been ongoing for over 4 years, with most of the substantive texts being prepared by the EU side.

However, when the negotiating teams did meet, on 27th. December, progress was swift, and an agreement was wrapped early in the morning of December 29th. Its provisions, widely seen as a capitulation by the UK, included a 75-day extension of the transition period to enable both sides to ratify the deal. Emergency virtual meetings of the UK cabinet and EU Council agreed the deal and transition period extension and the public reaction was overwhelming favourable in all capitals with many government spokespersons talking up the deal as a sensible compromise between competing aspirations.

Industry, and the haulage industry, in particular, breathed a sigh of relief that tariffs would not, after all apply from the morning of January 1st. and the prospect of long queues and delays was avoided, at least for the time being. There was much bi-partisan praise for the Johnson government "finally having come to its senses” (Labour) and having had the resolution to fight to the end for "the very best deal possible" (Conservatives) and many noted that the "spirit of Christmas" had finally entered the negotiations.

Quite why the Johnson administration waited until January 28th. To recall parliament to debate and ratify the deal remains a mystery, because the national consensus in favour of the deal seemed to dissolve in the intervening period. Many hard line Brexiteers responded to what they deemed to be Remainer taunts of having agreed a deal much worse that full EU membership with threats to amend the ratifying legislation before Parliament. In particular, there was opposition to repealing the Internal Markets Act as required under the EU UK Trade Agreement Bill 2021.

EU governments, noting that once again the UK seemed to be dragging out the process of ratifying the deal until the last minute were also reluctant to present the Agreement to their parliaments in advance of the UK debating and ratifying it. Fears were expressed that any prior EU ratification of the deal would only set the stage for the UK parliament again trying to renegotiate the deal. Once again it became a case of who would move first.

Alone among the 27 EU member states, Ireland announced that it would hold a national referendum on the Agreement as it could be deemed to modify the Good Friday Agreement which had been incorporated into the Irish constitution by a 94% majority in a referendum in 1998. For constitutional reasons this could not be held until mid-February in any case.

This referendum was eventually passed by an 70% margin (as the "best available deal") but not before there was much animated debate on its merits, with many noting that it greatly increased the distance between the UK and EU on all matters except for trade in goods, and hence the distance between N. Ireland and Ireland.

Sinn Fein campaigned against the deal on the basis that it should have incorporated a requirement to hold a referendum on a united Ireland as in every respect other than trade in goods it incorporated unionist aspirations to union with Britain rather than nationalist aspirations to a united Ireland within a united Europe, and hence undermined and replaced the Good Friday Agreement with little more than a "trade in goods" economic rather than peace deal.

But the debate around the Irish referendum also took place in the context of increasing parliamentary opposition in the UK to ratifying the deal, and there was widespread "mainstream" public concern that in the absence of a deal, the Irish agricultural sector would be decimated, and Ireland would end up having to put customs barriers around the border to collect tariffs on British Exports arriving via N. Ireland.

The UK government, emboldened by the resounding Irish popular vote in favour of the deal, eventually put the deal to a parliamentary vote at the end of February 2021. To their shock, all opposition parties voted against the deal as "a very poor relation to full or associate membership of the EU," and urged that its terms should be put to a second referendum in the UK. This enabled Brexiteer rebels in the European Research Group (ERG) to argue that the Government was running away from a popular preference for "no deal" and defeat the bill in the House of Commons.

European Leaders reacted with consternation, shock, amazement, and relief they had not yet put the deal before their own Parliaments for ratification. They resisted calls from the UK to renegotiate the deal and offered to hold "clarificatory talks" instead. But it was clear that time had run out and there was no appetite on either side to reopen negotiations. The Johnson Government announced it was happy to proceed on the basis of "no deal", and the 10% and 20% tariffs came into full effect just before St. Patrick’s Day, on March 17th. 2021.

There were some "behind the scenes" attempts to broker some sort of compromise prior to and after March 17th., but they were hampered by the fact that no one seemed to know what sort of compromise could resolve the impasse and achieve a majority in the UK parliament. Also, after the retirement of Michel Barnier, the EU no longer had any team dedicated to resolving EU UK issues.

Responsibility for EU UK relations was passed on to Josep Borell, EU High Representative for foreign affairs, as, officially, no further trade negotiations were taking place between the EU and UK, and the EU Trade Commissioner was busy conducting trade negotiations with other countries. Some in the UK pointed to the resignation of Irish EU Trade Commissioner Phil Hogan in the “golfgate” scandal as contributing to the low priority the EU now gave EU UK affairs.

The "no deal" outcome of the negotiations proved to be hugely damaging to the UK economy in particular, although it didn't help EU recovery post pandemic either. The Biden administration refused to countenance a trade deal with the UK until such time as the Withdrawal Agreement was honoured in full, and trade relations on the island of Ireland were "regularised". The UK also found it difficult to conclude advantageous trade deals with third countries as the EU always insisted that any terms, deemed more advantageous to the UK, would have to apply to the EU as well.

Almost no country, even commonwealth members, could be seen to go out on a limb to secure a trade deal with the UK while it remained in breach of the Withdrawal Agreement. Opponents always asked how the UK could be trusted since it had unilaterally breached the terms of the last agreement it had ratified.

In practice, the UK did in fact implement the N. Ireland protocol, as contained in the Withdrawal Agreement, but it could never acknowledge the principle of doing so as that would relinquish what it saw as one of its bargaining chips with the EU: the repeal of the Internal Markets Bill. So trade within Ireland, and between N. Ireland and Britain continued relatively unhindered, and the UK even seemed to turn a blind eye to applying tariffs to goods originating in Ireland, provided they were "exported" via a N. Ireland registered company from N. Ireland to "mainland" Britain.

The Irish economy, already recovering rapidly despite continuing Covid lockdowns because of its strength in the Pharma, Medtech, ICT, Fin Tech and financial services sectors, grew from strength to strength. Food exports to the UK were only minimally affected and largely replaced by exports to the EU. Transport routes replaced the UK "land bridge" with direct sea routes from Dublin to Spain and Rotterdam and other northern European ports. Many financial services companies had re-located their EU operations from London to Dublin, and other UK companies with a high dependency on the EU market were quick to set up subsidiary manufacturing operations in Ireland.

Unemployment, post pandemic, remained elevated for some time, especially in rural areas, as the extension of high-tech industries was relatively capital intensive compared to labour intensive agriculture, and employed a differently qualified workforce. But it was remarkable how quickly Irish agribusiness adapted to re-directing exports from the UK to the EU, and the government also managed to re-direct much FDI (some of which might previously have gone to the UK) to smaller urban centres around the country. If anything, the pandemic had a greater impact on rural employment as it had devastated the travel and tourism industries. Overall, however, the picture was one of a remarkably quick recovery and outstanding resilience, thanks in no small measure, to extensive government recovery supports and initiatives.

The UK economy, by way of contrast, was severely impacted. Financial services, the driver of much economic growth and government revenue, lost access to EU markets and prestige in many other markets as well. UK industry was devastated, as much of it was foreign owned and but a cog in a longer supply chain which required quick and easy access to other EU markets. When faced with a choice of closing a UK or EU plant, due to falling demand or excess capacity, most corporates chose the former. Those hedge funds which had "shorted" UK assets in advance of Brexit and then repurchased found their assets never recovered their former value.

Ireland is the only European country with which the UK had a significant trade surplus. However, the Irish government was rigorous in the application of tariffs and regulation checks, partly because it needed the 20% of revenues collected the EU allowed it to keep to help close the deficit in government spending. This increased consumer price inflation to some degree from a negative base, but mostly it just encouraged a consumer switch from UK to EU products as exemplified in the rise in Lidl and Aldi market share as opposed to Tesco and from other UK pharmaceutical and consumer products sourced mainly in Britain. Irish companies went on a buying spree of N. Ireland assets so they could "muddy the waters" in terms of "the rules of origin" of goods partly produced in Ireland and sold in Britain.

Gradually, after much propaganda warfare, it dawned on the UK government that the EU was quite comfortable without UK membership and a much-reduced level of trade. Its attempt to use Irish agriculture and the Irish land border as a bargaining chips to gain access to the Single Market had back-fired spectacularly. Its loss of the City's dominance of European financial services had been hugely costly in terms of both output and government revenue. Public services were crumbling for lack of resources, calls for Scottish independence were becoming ever more strident, and much of the north of England was in revolt at rising unemployment and diminishing prospects.

Attempts to revive even low level, back channel negotiations with the EU were less than successful. In the post pandemic gloom EU officials were happy to scavenge what business they could at the expense of the UK and needed to point to the decline of the UK as an example that things could be even worse if the rest of the EU didn't stick together. The focus was on building up European financial services and other industries that might otherwise have located in the UK.

The UK had simply moved way down the EU's list of priorities and the common wisdom was that there is no point in negotiating with the UK because you can never trust it deliver on its commitments. Many considered that Scotland would soon re-join the EU as a sort of consolation prize and were puzzled that N. Ireland hadn't already done so.

But the Irish government was cautious about any move towards a United Ireland because of the risk of unrest in N. Ireland's unionist community and the costs of replacing the UK exchequer's net £10 Billion subsidy to N. Ireland. The Northern Ireland economy, itself, wasn't doing too badly with the status quo because, in practice, it had access to both the British and EU markets. Irish firms requiring access to the UK market were significantly increasing their investment there for that reason. Almost everyone, bar Sinn Fein, was afraid to upset the status quo. The greatest fear was that the diminished circumstances of the UK exchequer would force it to effectively defund the North, where the vast majority of jobs are linked to (UK) public expenditure in some way.

With the sunny uplands, post Brexit, becoming ever more elusive the calls for Scottish independence and for the UK to re-join the EU became ever more strident and widespread within the UK. Campaigners for both couldn't quite understand the EU's apparent lack of enthusiasm for either prospect. Partly this was due to a diplomatic reticence about being seen to interfere in the internal affairs of a non-member sovereign state. But mostly it was because most EU citizens and officials had had quite enough of UK membership of the bloc. Even the prospect of Scotland re-joining wasn't greeted with unmitigated enthusiasm - they would, after, all, be a direct competitor for the FDI that was now going to Ireland, and the EU didn't need another wannabe corporate tax haven within its boundaries.

A change in attitudes didn't really come about until after Labour's resounding victory at the polls in 2024. Labour had campaigned, not on re-joining the EU, but on "normalising and improving relations", understood by everyone to mean an end to tariffs. But the EU had become rather too accustomed to having its own significant revenue stream, not dependent on direct member contributions, and showed little urgency to reciprocate the UK's new change in focus. It took a lot of diplomatic schmoozing and no end of Royal Visits to even begin to put relationships on an even keel again.

Other issues also started to crop up to stymie potential talks, including a Spanish decision to make agreement to any new deal dependent on a change to the status of Gibraltar, French insistent of greater access to UK fishing waters, Cypriot insistence on a return of UK sovereign bases there, and Greek demands that the Elgin Marbles be returned. Certainly, the question of the UK re-joining the EU was never on the agenda. There would have been too much loss of face involved.

Eventually attitudes softened and a minimal deal to eliminate tariffs was agreed in late 2026. Everyone looked forward to a much more positive and productive relationship going forward while acknowledging that things could only improve from a such a low base. Historians will record the Brexit and Trump eras of populism as something of an aberration in the development of Western politics, but in truth they represented but an episode in the decline of the West as a whole. Making America and Britain Great again proved an elusive endeavour which could not be achieved at the expense of other western nations.

Boris Johnson retired from politics to resume his career in journalism berating the EU for all manner of sins. The Tory party never quite recovered from their Brexit adventure, and were eventually replaced by the Liberals in the duopoly of power in the House of Commons. Their main policy focus became to sustain the Union and electoral reform, advocating the adoption of an Irish style system of proportional representation. Scotland became independent after a referendum in 2027 and was eventually granted accession to the EU on condition they adopted the Euro and didn’t lead a race to the bottom on corporate taxation. This created a whole range of issues in border counties.

Ireland was reunified in 2029 after narrow referendum wins, North and South, but only after it became clear the £10 Billion British exchequer subsidy could no longer be sustained and many thousands of publicly funded jobs in N. Ireland were at risk. Unionists were told the only way they could retain a close relationship with Scotland was as part of the European Union. The European Union granted some transitional aid, but basically the costs of re-unification could only be borne by the island as a whole through extensive rationalisation of public administration services and tax increases for higher earners and corporates.

In many ways, re-unification is proving a greater challenge for Ireland than Covid-19 or Brexit ever were. Considerable progress has been made in reducing economic imbalances, but the problems of social division and community tensions remain as difficult as ever. The jury is still out as to whether and how long it will take for these tensions to be resolved, but it is worth noting that tensions remain in Germany 40 years after re-unification, and in the USA 165 years after the end of the civil war!

Excellent writing Frank!

Quite interesting in this context a new book written by Ian Buruma, living in a Liberal New York ...

The Churchill Complex

Donald Trump has more in common with Winston Churchill than you think

'Sapere aude'

by Oui (Oui) on Sun Oct 11th, 2020 at 04:46:04 PM EST
by Bernard (bernard) on Sun Oct 11th, 2020 at 06:53:45 PM EST
[ Parent ]
by Oui (Oui) on Sun Oct 11th, 2020 at 06:57:14 PM EST
[ Parent ]
If things go that way I doubt there will be a UK in 2025.  Scots are fed up with England.  Current polling has Independence leading and an even larger number - in the 60 percentile - believing Independence will pass at the next referendum irregardless of how each individual plans to vote.

The Scots have already made the mental switch to Independence.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sun Oct 11th, 2020 at 05:20:33 PM EST
I have made some minor corrections to the text and added a few paragraphs at the end which I feel round out the story a little better. Please read the last few paragraphs and feel free to comment!

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Oct 11th, 2020 at 07:33:59 PM EST
Wouldn't it be easier to join a special Union NI - Scotland with Norway.

Mediëval Times Scandinavian Scotland

Perhaps England could live with that 🤨

'Sapere aude'

by Oui (Oui) on Sun Oct 11th, 2020 at 08:54:29 PM EST
There's always the Nordic Passport Union, even if parts of it are inside EU.
by pelgus on Sun Oct 11th, 2020 at 09:01:34 PM EST
[ Parent ]
Why would Norway want that?

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Oct 11th, 2020 at 09:11:07 PM EST
[ Parent ]
In the paragraph starting with "Gradually, after much propaganda..." in the 5th line there's an "it's" instead of an "its".
 Great post, Frank. I'd like to know what you see in your crystal ball for intra-European relations 10 years from now. Have the frugal countries maintained their block on wealth distribution to S. Europe? Have the Visigrad group's revanchist, undemocratic powerplays been curbed?
Were the investments dedicated to digitisation, youth and the environment in 2021 successful in their tardy, but noble aims?
Has the erasure of the 5* movement been complete by 2029?

'The history of public debt is full of irony. It rarely follows our ideas of order and justice.' Thomas Piketty
by melo (melometa4(at)gmail.com) on Mon Oct 12th, 2020 at 09:13:22 AM EST
Thanks. Every time I look at it I see more typo's, spelling mistakes, and awkwardly constructed sentences. It's most annoying! But I have been adding bits and pieces to the text as time goes on as well.

I wouldn't pretend to be as knowledgeable about frugal four and Visigrad politics, so I would just make a few observations from experience elsewhere:

  1. There will always be tensions between net contributor and net recipient countries about the amount of contributions and the way in which they are spent. The best way to reduce this is to increase the level of the EU's "own resources" from external tariffs, global green taxes, digital taxes, and (whisper  it) global corporate taxes. Monies which aren't easily attributed to specific member states can then be spent in terms of EU wide criteria of need as opposed to the priorities of nationalist politicians.

  2. It should be noted that when Ireland joined the EU in 1973 it was an economically backward, church dominated, political cartel dominated by the civil war parties, Fianna Fail and Fine Gael. Much play is made of how Irish agriculture benefited from the CAP but the real impact of the EU was much more profound: social equality legislation, employment protection legislation, human rights, a less corrupt way of doing business. It took 40 years for all these positive influences to come to fruition and it took a new generation to come to power to fully implement them, but the Overton window has moved beyond recognition to the point where the most conservative parties are to the left of the European spectrum. Consequently, I wouldn't be too concerned about the dominance of certain reactionary parties/politicians in Eastern Europe at the present time. The EU is playing a long game.

  3. Protest parties come and go. Some are absorbed into the establishment, others disappear, some achieve remarkable longevity by adapting to changing circumstances. Occasionally they take over for a time. I think Italy has deep structural problems only it can fully address (with EU support) but I think its a fool's game to try and predict the exact constellation of parties in 10 years time.

  4. Generally speaking, investments dedicated to digitisation, youth and the environment are a good idea. Even if wastefully/inefficiently targetted they can have useful Keynesian benefits for the economy as a whole and are preferable to "tax cuts for the rich". But I wouldn't overplay the EU's role in all of this: the micro is as important as the macro, and it's what happens on the ground that can have the greatest impact and "bang for your buck". Also I think the EU somehow needs to cultivate a greater entrepreneurial spirit to generate greater dynamism in the economy: It can't all be about large corporations, economies of scale, global supply chains, complex compliance requirements and  large bureaucracies. Digitisation can facilitate much of this by making it easier for start-ups and small businesses to prosper.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon Oct 12th, 2020 at 10:51:26 AM EST
[ Parent ]
Haven't you forgotten the food riots?

For some reason the English populace was surprised to find that its dietary habits had quickly reverted to those of the 1960s: Meat and two veg, wherein "meat" is Spam or tinned sausage and the veg is cauliflower or mushy peas. Kippers, or jellied eel were still available at the newly-rejuvenated mash houses, to be washed down with half a (domestic) bitter.

Not being able to find avocado toast or charcuterie or their usual Languedoc wine, and with curry shops shut due to the deportations, the people revolted in disgust at what was on offer, the opposition to American chicken quickly faded.

by asdf on Mon Oct 12th, 2020 at 09:00:32 PM EST
In the scenario I painted, there is nothing to prevent UK food imports to continue, except that they will become more expensive due to Sterling devaluation, and perhaps due to tariffs, if HMG can get it together to actually implement a customs and tariffs system within the next few years.

Fresh food could be a problem due to delays at customs, but there is always "the northern route" from Ireland through Northern Ireland and across the unguarded Northern Channel. Domestic production will plummet as their are no Romanians to pick the crops, and farmers will have gone bust due to the ending of CAP subsidies.

Tillage lands will have reverted to the landed estates of City gentlemen who will have reinvested their disaster capitalist gains in land at rock bottom prices. They will use those lands for hunting/shooting/fishing rather than for anything productive.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon Oct 12th, 2020 at 11:41:03 PM EST
[ Parent ]
"agreement to any new deal dependent on a change to the status of Gibraltar"

Seems more likely that Gib will be cut loose in about 3 months. A few days of nobody crossing in from Spain will destroy the economy there, and England will have way too many other problems to even notice.

Also the Falkland Islands. Recall that on Thatcher's watch, the Navy could still project a reasonable amount of sea power. Argentina will be all over it.

by asdf on Mon Oct 12th, 2020 at 09:21:50 PM EST
In my scenario the EU won't have closed any borders, merely charged a 20% importation tax on all UK produce. The problem for Gibraltarians will be that their Sterling has lost a lot of purchasing power, although many may not notice if they are earning Euros in Spain.

I'm not actually hypothesising that the EU does anything very extreme or unreasonable. The 20% tariff on UK exports will be to prevent UK exporters gaining an advantage through Sterling devaluation, and to fund measure to protect EU exporters to the UK form the effects of UK tariffs and the reduced value of Sterling.

Otherwise all is sweetness and light. Smiles as Britons cross the border into the EU unhindered. An efficient online documentation barcode enabled system to process incoming goods and collect tariffs due. UK exports don't add much more than 5-10% to imports from the rest of the world in any case, so the systems are already in place and require only marginal upgrade.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon Oct 12th, 2020 at 11:52:29 PM EST
[ Parent ]
If Britons can cross the border into Spain unhindered, how does the EU stop them from flying to Gibraltar and then wandering into France/Portugal/Germany/etc.?
by asdf on Tue Oct 13th, 2020 at 09:46:00 PM EST
[ Parent ]
Why would it want to - absent Covid restrictions? I'm not hypothesising any closed borders, just a tariff on goods and checks to ensure they meet EU standards. It's a trade war I'm suggesting may happen: tourism and travel can continue as is, except that Britons will have to queue in the non-EU queue at passport control.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Tue Oct 13th, 2020 at 10:37:53 PM EST
[ Parent ]
by Bernard (bernard) on Fri Oct 16th, 2020 at 06:57:53 PM EST
UK credit rating downgraded by Moody's amid growth concerns
In a damning indictment of the government's negotiation strategy, Moody's said its failure "to manage change in a predictable and confidence-building manner is evident with respect to the UK's approach to Brexit, in its inability to achieve an outcome which meaningfully replicates the benefits of EU membership and in its approach to implementing the agreement reached with the EU to date".

"Even if there is a trade deal between the UK and EU by the end of 2020, it will likely be narrow in scope, and therefore the UK's exit from the EU will, in Moody's view, continue to put downward pressure on private investment and economic growth," the agency added.

by Bernard (bernard) on Sat Oct 17th, 2020 at 09:42:36 AM EST
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sat Oct 17th, 2020 at 12:49:22 PM EST
[ Parent ]
Nice quote ...

Boris Johnson is dancing with danger by threatening a crash-out Brexit | The Guardian Opinion |

Boris Johnson is telling Britain to prepare to become Australia. By this, he does not mean that we can look forward to moving to the southern hemisphere in time for a sunkissed Christmas and barbecued turkey on Bondi beach. He means that he is threatening to make a Covid-bleak winter even darker.

'Sapere aude'

by Oui (Oui) on Sun Oct 18th, 2020 at 09:17:40 AM EST
Ipsos Mori
Scottish independence

    Among those who would be likely to vote in an independence referendum, 58% say they would vote Yes while 42% would vote No.
    Almost two thirds (64%) of Scots say that the UK Government should allow another independence referendum to be held within the next five years if the SNP wins a majority of seats in the 2021 Scottish Parliament elections - while a third (34%) say that the UK Government should not allow this.

Scottish Parliament voting intention

The SNP currently has a very strong lead in voting intention for both constituency and list votes in next May's Scottish Parliament elections, with the Conservatives in second place and Labour faring worse in third.

Headline Scottish Parliament voting intention figures for the constituency vote are:

    SNP: 58%
    Scottish Conservatives: 19%
    Scottish Labour: 13%
    Scottish Liberal Democrats: 8%
    Other: 2%

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Oct 18th, 2020 at 01:22:20 PM EST
The next elections for Holyrood is 6 May 2021.  If the SNP does get the clear majority polling says they will then it's a very good argument for holding a Referendum next year or in early 2022.  

SNP needs to strike before the Scottish economy is totally trashed by Brexit.

She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Sun Oct 18th, 2020 at 06:30:37 PM EST
[ Parent ]
https://www.theguardian.com/commentisfree/2020/oct/18/alarming-data-britain-sick-man-europe-before-c ovid
The headline findings from the report are clear. In 2019, life expectancy at birth in the UK was 82.9 years for a woman and 79.2 years for a man (the average for both was 81.1 years). These numbers look good, especially when compared with historical figures. In 1950, for example, the average life expectancy at birth for a UK citizen was 68.9 years. The combined effects of economic growth, better education and an improved NHS have delivered an extra 12 years of life. Impressive.

That is until you start comparing the UK with other European countries. When you do this, you find we have seen smaller increases in life expectancy than the western European average. Spain and Italy, for example, both had an average life expectancy at birth of 83.1 years in 2019. In France, it was 82.9 years, Sweden 82.8 years and Germany 81.2. The western European average life expectancy was a whole one year longer than in the UK.

Another important measure is what's known as healthy life expectancy - the years of life we spend in good health. The average healthy life expectancy for the UK in 2019 was 68.9 years, meaning that people in the UK spend an average 12.2 years living with some kind of illness. And again, when one compares the UK with other European nations, we perform poorly.

In fact, Britain has the worst healthy life expectancy of any other European country. We come bottom of the league table, alongside Monaco. We've seen a slower improvement in healthy life expectancy (3.6 years) than the western European average (5.8 years). And the situation for children is equally bad: the under-five mortality rate in the UK in 2019 was 4.1 deaths per 1,000 live births - one of the worst performances in western Europe, second only to Malta. Whatever metric one chooses, the UK's health performs worse than comparable European nations.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Oct 18th, 2020 at 04:50:41 PM EST
Shame! SARS Covid-2 spreads through minorities living in poor housing condities and air quality. European environmental standards one of the motivations for Tories and PM Boris Johnson to prefer a no-deal Brexit.

Why Brexit? Micocosm of Isle of Dogs

Air Pollution and COVID-19: The Role of Particulate Matter in the Spread and Increase of COVID-19's Morbidity and Mortality

UK taken to Europe's highest court over air pollution | The Guardian - May 2018 |

'Sapere aude'

by Oui (Oui) on Sun Oct 18th, 2020 at 06:35:41 PM EST
[ Parent ]
New publication ...

London the worst city in Europe for health costs from air pollution | The Guardian |

NO2, PM and ground-level ozone (O3) - also largely derived from diesel - are responsible for nearly 500,000 premature deaths across Europe every year.

London suffers the highest social cost, at £10.32bn a year, well ahead of other European cities such as Bucharest (£5.75bn), Berlin (£4.75bn), Warsaw (£3.83bn), Rome (£3.76bn) and Paris (£3.18bn).

'Sapere aude'

by Oui (Oui) on Wed Oct 21st, 2020 at 08:24:16 AM EST
[ Parent ]
Isn't this all well known by now? Except for Monaco. Is there a reason for this, beyond meaningless statistics? (The way a single murder made Liechtenstein into one of the most dangerous countries in the world for that year.)
by gk (gk (gk quattro due due sette @gmail.com)) on Sun Oct 18th, 2020 at 06:48:55 PM EST
[ Parent ]

'Sapere aude'
by Oui (Oui) on Wed Oct 21st, 2020 at 10:51:54 AM EST
UK Noticed the EU Moved ...

UK welcomes Barnier's 'significant' remarks on unlocking Brexit talks | The Guardian |

"Despite the difficulties we've faced, an agreement is within reach if both sides are willing to work constructively, if they're willing to compromise and if we're able to make progress in the next few days on the basis of legal text; and if we're ready for the next few days to resolve the sticking points, the tricky subjects, because time is of the essence. And time is running out each and every day."

Must certainly move the stock market higher make the British Pound jump...

'Sapere aude'

by Oui (Oui) on Wed Oct 21st, 2020 at 12:47:22 PM EST
[ Parent ]
The choreography of the dance moves ever so slowly in diminishing circles. The areas of disagreement have been narrowed down. Barnier makes negotiating on the basis of a legal text sound like a compromise, when that is the area of EU expertise all along. Nothing less will suffice. The negotiators will probably eventually come to a deal. The question is whether that deal will ultimately be ratified.

My scenario is based on the probability that it will not be, because the politics of the UK and EU are increasingly out of control, and spinning in opposite directions. Astute and strong political leadership could still pull it off, but there has been a marked absence of that, particularly on the UK side. Can Boris head off the no-dealers, and does he even really want to badly enough?

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Wed Oct 21st, 2020 at 01:44:11 PM EST
[ Parent ]

'Sapere aude'
by Oui (Oui) on Wed Oct 21st, 2020 at 05:39:46 PM EST
[ Parent ]
FTSE 100 set to rise as Boris Johnson hails trade deal with Japan - Britain's first since Brexit vote

Pressure remains high on the government to reach a deal with the EU for post Brexit trade terms, however; Japan is currently only Britain's 13th biggest export partner, making up $8.3 billion of exports, compared with Germany's $46.6 billion, France's $31 billion and Holland's $30 billion.

'Sapere aude'
by Oui (Oui) on Fri Oct 23rd, 2020 at 08:53:23 PM EST
Crowing about $8.3 billion of exports while trashing £300 billion of exports.


She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre

by ATinNM on Fri Oct 23rd, 2020 at 10:35:14 PM EST
[ Parent ]
According to Mark Rutte, economy outperforming thanks to "intelligent" lockdown this spring ...

Dutch housing prices up 11.6% in third quarter despite Covid crisis

A total of 41,500 homes were sold at an average price of 354 thousand euros, 11.6 percent more than the third quarter of 2019. This is the highest price increase in over 20 years, according to the NVM. Asking price on average was 2 percent lower than the purchase price.

In comparison a friend is moving in the City of London ... house prices in the area dropped 6% in last 3 months .. gain of last 5 years erased. The rental price of similar apartments dropped 20% 🙁 in one year, or for the family a big 😊.

'Sapere aude'

by Oui (Oui) on Sat Oct 24th, 2020 at 06:14:28 PM EST
Intelligent lockdown ... smart economic performance ... at what cost??

Some 60,000 jobs at risk at Schiphol

10,007: Coronavirus infections for the day sets dismal record

Mark Rutte and a perfect PR presentation ...

Quite similar to his Conservative buddies Boris and Donald ... economy prioritized above health issues and Covid deaths ... test and trace in complete shambles. 😡

RIVM: Current information Covid-19

'Sapere aude'

by Oui (Oui) on Sat Oct 24th, 2020 at 06:28:14 PM EST
[ Parent ]

'Sapere aude'
by Oui (Oui) on Sat Oct 24th, 2020 at 09:00:06 PM EST
The government has quietly reduced the £35,800 minimum salary for migrants to settle in the UK by almost 30%, it has emerged.

Migrants on salaries of £20,480 but with enough points under Boris Johnson's new Australian-style immigration system to qualify for jobs where there is a shortage of workers will also be entitled to settle after six years and become citizens.

The rules, which come into force on 1 December, were published on Thursday by the Home Office, with the general threshold lowered to £25,600 as the government tacitly acknowledged the essential contribution that lower paid migrant workers make to the UK.

However, Migration Watch UK, which campaigns for tighter immigration control, said the move would reduce the incentive for employers to train British workers.
by Bernard (bernard) on Sun Oct 25th, 2020 at 07:33:18 AM EST
[ Parent ]
Johnson will wait for US election result before no-deal Brexit decision
Senior figures in European governments believe Boris Johnson is waiting for the result of the US presidential election before finally deciding whether to risk plunging the UK into a no-deal Brexit, according to a former British ambassador to the EU.

Ivan Rogers, who was the UK's permanent representative in Brussels from 2013 to 2017, told the Observer that a view shared by ministers and officials he has talked to in recent weeks in several European capitals, is that Johnson is biding his time - and is much more likely to opt for no deal if his friend and Brexit supporter Donald Trump prevails over the Democratic challenger, Joe Biden.

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Sun Oct 25th, 2020 at 11:54:27 AM EST
Brexit makes Britain `less useful to the US,' says former top diplomat
Britain is no longer Europe's "center of gravity" in the eyes of America -- and particularly if Joe Biden is elected president next month -- according to former senior diplomat and cross-bench peer Peter Ricketts.

After 40 years defending Britain's interests in the world, Ricketts offered a sobering interpretation of the impact Brexit is having on the U.K.'s international standing.

"When Biden looks towards Europe, he will see Paris and Berlin more as the center of gravity of what's really important for America in Europe, both economically and in security terms, and Britain will be seen rather as an outlier, rather outside the mainstream of Europe," he said.

"There will continue to be an important bilateral relationship on defense and security of course, but in other areas, Britain will not have the same prominence it has been used to having in Washington because, frankly, Britain is less useful to the U.S. administration."

[No Shit, Sherlock!]
by Bernard (bernard) on Tue Oct 27th, 2020 at 06:46:18 PM EST
[ Parent ]

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