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The strategic consequences of Brexit

Giancarlo Elia Valori

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Though with a knife-edge majority, Great Britain has relinquished its economic and political relationship with the EU. Obviously account shall be taken of the many people who voted in favour of Bremain, since they will not disappear all of a sudden, but also the strategic, military and geopolitical effects of this new UK position shall be assessed.

A position which today seems to be mainly economic and commercial, but which will soon herald wider choices than the mere give-and-take between Great Britain and the European Union.

For sure the British people have never liked the European Union.

In 1975 Margaret Thatcher put strong pressures for the United Kingdom to adhere to the European Union, but the idea of the Iron Lady was to become member with a view to controlling a powerful entity, such as the EU, thus avoiding the creation of an axis between France and Germany to isolate Great Britain – as, indeed, later happened. Also from the commercial viewpoint.

Prime Minister Thatcher decided to adhere to the EU as some businessmen do with potentially dangerous companies of which they buy a significant shareholding so as to better manage them from inside.

It is worth recalling that there was still the Cold War that Great Britain was fighting with great care and intelligence wisdom.

At the time, both Prime Minister Thatcher and the other EU statesmen viewed the European bloc as an economic agreement preventing the USSR from extending its economic, if not military, influence over what the French philosopher, Raymond Aron, called “the great Central European plain.”

The plain that the Warsaw Pact planned to quickly conquer so as to reach the Atlantic and seal the UK into its North Sea.

Without Great Britain, there would be no European nuclear arsenal and the French one would fall immediately into Russian hands.

Furthermore, in her book of 2003, Statecraft: Strategies for a Changing World, Margaret Thatcher did not dismiss the possibility of Brexit as “unthinkable”, but thought that the issue had to be analyzed very carefully.

It had to be assessed in terms of strategic and commercial routes and in terms of UK influence over the EU decision- making process, as well as for assessing the balance between the euro and the pound sterling.

These are the decisive factors of the EU-UK matrix, not others.

Currently the European framework is obviously much more complex than in the 1970s.

It is not true, however, that the Union rescued Europe from the fratricidal wars which scarred it as from Napoleon I onwards. The European Civil War, as the German historian and philosopher Ernst Nolte called it.

Conversely peace in Europe was preserved by the military balance between NATO and the Warsaw Pact.

The “economic basis of the war” between Germany and France, from Alsace-Lorraine to the Ruhr region, was an old strategic concept which had already been solved with the European Coal and Steel Community (ECSC) in 1951.

Nevertheless, as from 1980 onwards, it was precisely Margaret Thatcher who put pressures on the EU to “get her money back,” by considering the agreements between the EU and the UK unnecessarily too burdensome for her country.

In her speech delivered in Bruges in 1988, the Conservative Prime Minister spoke clearly against “a European super-State exercising a new dominance from Brussels”.

This is the core of the issue: the British people have never wished to turn the economic “contract” among the European Member States into a specifically political contract. They wanted and still want to have a free hand in the global financial framework. Finally they intend to avoid the geopolitical effects of the economic and trade ties established in Brussels.

Great Britain is a State, a great nation, which needs overall global autonomy which, on the contrary, the EU manages according to covertly Franco-German interests that are potentially opposite to the UK ones.

It is not the British leaders’ perception, it is the truth and, however, in politics, perception counts as reality, if not even more.

As is in A Midsummer Night’s Dream by William Shakespeare.

With this choice, Great Britain, which still has the “imperial dominance spirit of Lawrence of Arabia” – as the former Italian President Francesco Cossiga who, however, was a close friend of Margaret Thatcher, called it – is trying to play some cards which, despite the “mists of tomorrow”, are potentially valid.

Firstly, the relationship with the United States, also at economic level, comes back to the fore.

When in 1976 the United States celebrated the bicentennial of their independence (from Great Britain, by the way), a British sailor arrived in the New York port holding a banner with the inscription: “Come back home, guys, we have forgiven you.”

Hence Great Britain still considers itself an empire – currently a British empire of finance and technology, but anyway still an empire.

With a view to becoming again “what it is” – along the lines of Friedrich Nietzsche’s journey of becoming a free spirit – Great Britain just needs to revive and revitalize its special relationship with the United States.

As early as 1958, a Mutual Defense Agreement was signed between the United States and Great Britain regarding the two nuclear arsenals while in 2010, thanks to a subsequent bilateral treaty with the United States, Great Britain had the opportunity of overcoming many of the controls and limits imposed by the Americans on its advanced defense technologies – limits imposed also on NATO members.

Great Britain is the second largest economy of the English-speaking world and the sixth largest world economy. It is the largest US trading partner and a member of the UN Security Council. It hosts the highest number of US military bases abroad and, above all, it is the global financial hub which periodically rescues US banks from their insolvency crises.

Hence it is clear that Brexit can be seen as a major US strategic success and outlines the end of the “third pole” between East and West which sometimes the EU has dreamt of being.

The dollar zone has never liked the euro. Quite the reverse, it has fought it harshly.

For the United States, the European single currency was and still is a strong competitor, as well as a threat to their role as hegemonic global financial power – an insane “Napoleon’s dream”.

Moreover, the idea of bringing the euro to an often forced parity with the US dollar has undermined EU exports, by compelling them to be carried out with a currency having a too “high” value which has restricted the end-markets.

Not to mention the many temptations generated by the euro on world commodity markets: it is true that – among many other assessments and considerations – the United States attacked Saddam Hussein for his still secret choice of trading most of his oil and petroleum products in euros.

It is also true that, in the phases characterized by great international tensions, Iran traded part of its oil and petroleum products in euros, especially on the “stock exchanges” in Kish and in the other islands of the Persian Gulf.

The Brexit effects, however, increase the volatility of the pound sterling against the dollar, with a spread of approximately 15% compared to the pre-referendum values.

Financial analysts’ imbalances which, by now, are mainly trolls, namely IT automatisms.

Certainly Great Britain will not be granted a preferential treatment by the United States in the framework of the TTIP negotiations.

US President Obama has explicitly warned that the UK would be at the “back of the queue” in any trade deal with his country if it chose to leave the EU and would have the same treatment and the same barriers to entry as countries like China, Brazil or India.

Nevertheless Barack Obama is about to leave the US Presidency and, if Donald Trump were to be the next President, he will have every interest in dividing the European competitors and favoring them against the aggressive practices of countries like China and, in the future, India.

Also Hillary Clinton cannot avoid using this leverage offered by Great Britain for the TTIP negotiations.

The British TTIP is a bet on the future which, however, the UK could win by relying on its great financial strength.

Bilateral trade between the United States and the UK is very significant: America is the first destination of UK exports and the United States are the third generator of imports for the UK, after Germany and China.

North America and Great Britain are the largest mutual foreign investors.

A situation which cannot change all of a sudden, in spite of the US discontent and dissatisfaction with Brexit.

Furthermore the British government stated that TTIP could provide to the British economy a surplus of approximately 10 billion pounds a year.

There is the need to recover much of the Brexit cost and rebuild a strategic and military relationship with the United States which the UK sees as the only bulwark against two EU and NATO structural dangers: the EU decision-making weakness in the Middle East and the explicit German polemic against the Atlantic Alliance’s anti-Russian posture, which has been mounting in recent months.

Two dangers that the UK wants to avert: the recovery of German geopolitical autonomy tending to Eurasia and the EU structural weakness faced with Middle East tensions.

In Great Britain’s mind, Germany is always the country of the old definition by Lord Ismay, who was NATO Secretary General from 1952 to 1957: “The Atlantic Alliance’s purpose is to keep the Americans in, the Russians out and the Germans down”.

Great Britain does not want the strategic and economic exchange between France and Germany, in which Germans buy French government bonds massively and, in return, are entitled to the “enhanced and extended protection” of the French military nuclear power.

Great Britain does not even want a euro which, as “a German mark in disguise”, penetrates the major British export expansion areas.

Moreover, considering the EU strategic inanity, Great Britain fears for its corridors to and fro its Asian Commonwealth.

With its operations in Crimea and Ukraine, the Russian Federation blocks and distorts the direct line between Great Britain and India, besides changing the balance of power in Central Asia, where the UK has still strong interests.

Since 2001 to date, Great Britain has deployed its military units in Afghanistan, in the framework of the US Enduring Freedom operation, not only for mere “Atlantic loyalty” as other countries (including Italy) have done, but to still afford the regional strategic viability and role which are essential for it to keep Northern India, the central Asian countries and the routes from Southern China.

Those who think globally, as the decision makers of what was once a great Empire, do not stop doing so all of a sudden.

Unfortunately the EU’s mistakes are known to everybody: an artificially overvalued currency – maybe to compete with the dollar; an insane disconnection between EU foreign and economic policy; the idea of simultaneously controlling 29 countries which are all competing one another, with different tax systems and public spending mechanisms, not to mention the autonomous and conflicting public debt securities markets.

The EU could certainly reform itself by establishing, within the ECB, a single market of government bonds, possibly managed (and not tiered and capped) with the issuance of “European debt securities”.

That Germany does not want, and with good reason.

Moreover the Union could also make the various Member States develop an export plan, with a view to analytically protecting one commodity or the other, without dangerous generalizations (even for us).

From chocolate to wine, up to the hilarious theory of the ”Polish plumber” – popularized by Philippe de Villiers as a symbol of cheap labor coming from Central Europe as a result of the Directive on Services in the Internal Market during the EU Constitution referendum in France in 2005 – in the field of exports, so far Italy has lost and has hence paid for its mistakes related to its “scarce incisiveness” in Europe.

It is worth recalling that the Polish plumber. was supposed to come and work in the EU at the same rates he charged in Krakow. However, the cost of living in this Polish town is very different from the cost of living in the center of Munich.

Abstract free-trade and liberal theories, typical of a bad macroeconomics handbook, mixed with archaic protectionism – this is exactly what the EU has often been.

Hence, following the ideas of General de Gaulle, another great “Eurosceptic”, the issue lies in returning to a Europe of Nations and States where only what is already in common is decided jointly – and it could not be otherwise…

This means European protection from asymmetric shocks, selective penetration of new foreign markets and domestic liberalization of goods and services.

The idea of making the EU be the comptroller of the Member States’ public budgets, with abstract and binding rules, paves the way for a number of exceptions which inhibit the rule, or for a covert economic struggle between EU rich and poor countries.

We have already experienced it in Greece and this could also happen in Italy and Spain.

Furthermore, the EU has insisted on implementing a common “foreign, security and defense policy”, with the obligation to “make the Member States’ civilian and military capacities available to the EU”.

Shall this be done in agreement with NATO? Where is the chain of command of this 29-Member State army? Who develops its plans and sets its goals?

All this is for stabilization, humanitarian and conflict prevention missions, disarmament or military assistance and advice.

And what is the role played by the United Nations, despite all its limits?

In short, as from a certain phase onwards, which we could identify with the 2001 crisis, the European Union has believed to be what it was not and had not been conceived and meant to be.

After all, even the old anti-Soviet dissident Vladimir Bukovsky, was not entirely wrong when, from his new English homeland, equated the European Union with his old USSR.

Hence if the EU is able to reform itself not only at organizational, but also at domestic financial level, it will be in a position to keep on selling its merchandise: protection against asymmetric shocks, a strong currency widespread in the world, as well as a free internal market.

Conversely, if it continues to pursue its Napoleon’s dream of “uniting Europe”, it will have to face “one, a hundred, a thousand Brexit” – just to paraphrase Che Guevara’s words.

Furthermore, the issue does not lie in asking – as the Italian politicians do – for “greater budget flexibility” in exchange for abstract reforms which may be suitable for the Finnish people, but not for the Flemish population.

The problem is completely different: to have the possibility of drafting autonomous budgets so as to subsequently check their effects over a period of two years, without prior diktats.

Briefly, a more modest EU will survive very well – even after Brexit.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs "La Centrale Finanziaria Generale Spa", he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group and member of the Ayan-Holding Board. In 1992 he was appointed Officier de la Légion d'Honneur de la République Francaise, with this motivation: "A man who can see across borders to understand the world” and in 2002 he received the title of "Honorable" of the Académie des Sciences de l'Institut de France

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Europe

West return to 2007: Europe’s anger over incompetent politicians

Mohammad Ghaderi

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The anger and discontent of European citizens over European politicians is increasing day by day. While more than ten years have passed since the economic crisis in Europe, we are still witnessing austerity plans in this block.

France’s recent round of demonstrations isn’t limited to this country anymore, and we’re now witnessing demonstrations in countries such as Belgium and the Netherlands.

Many European citizens spent the years between 2007 and 2012 with the hope that the austerity policies would affect the devastated economy of United Europe and the Eurozone. That’s why they tried to cooperate with their own governments (which were mainly the far-right and social-democratic administrations). However, after 2012, we witnessed the end of European citizens’ patience towards politicians like Merkel.

Part of this dissatisfaction revealed itself in cases such as the European Parliamentary Elections in 2014, where more than 100 right extremists managed to enter the European Parliament. Now, in 2018, we are witnessing the continuation of the economic crisis in Europe in the security, social and political spheres.

It’s not without a reason that the number of nationalist groups’ supporters has increased in the mentioned areas. The security crisis is strongly felt in today’s Europe. Common policies which were adopted by European authorities couldn’t improve the security crisis within the Schengen borders and other European borders.

During 2015 and 2016 (and somehow in 2017), the Immigration and security crises in Europe caused other issues such as the economic crisis to become marginalized. But now it’s shadowed over the whole of Europe. Under such circumstances, the main question of European citizens is that what was the impact of austerity policies adopted for ten years inside the EU borders?

They can clearly see that the adoption of such policies has had no effects on improving their economic conditions. The existing economic crisis continues to be felt in everyday life of European citizens. The rise of the signs of the financial crisis in Europe, and the decline in credit ratings, and the growth of unemployment in countries that continue to be affected by the financial crisis have created many social crises in Europe.

The protests that are taking place today in France and other European countries are not merely an objection to rising fuel prices or tax increases for low-income groups. It is a protest against the unstable economic structure of the European Union and the Eurozone.

Emmanuel Macron, the young French president, as an economist, promised to redefine the existing economic structure in the Eurozone, with regard to the current economic crisis. However, Macron himself has now become the symbol of crisis in Europe!

The economic crisis in European countries doesn’t limit to austerity policies! The external debt crisis in the European countries should also be added to the economic and credit crises in the West. The crisis is heavily extended in countries like Italy, causing a lot of trouble for other member states of the Eurozone. The economic cohesion of the Eurozone member states has fueled this trend.

In any case, it seems that the patience of European citizens has come to an end. As noted, according to the predictions, these crises were to be resolved before 2012, and economic growth symbols was to be replaced by austerity symbols. But at the moment, there is little indication of economic growth in European countries, and austerity policies remain strong.

Finally, it should be concluded that the European countries, especially the EU member states, have no choice but to “self-destruct” their economic foundations and replace them with new patterns. If European officials continue to insist on existing methods and economic models, they will be doomed to failure in the near future. In this case, nationalist groups and far-right extremists will dominate Europe’s political, economic, social and security equations, and this would definitely be a terrible nightmare for those like Merkel and Macron.

First published in our partner MNA

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EU steps up action against disinformation

MD Staff

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To protect its democratic systems and public debates and in view of the 2019 European elections as well as a number of national and local elections that will be held in Member States by 2020, the EU is presenting today an Action Plan to step up efforts to counter disinformation in Europe and beyond.

Taking stock of the progress made so far and following up on the call made by European leaders in June 2018 to protect the Union’s democratic systems, the European Commission and the High Representative are setting out concrete measures to tackle disinformation, including the creation of a Rapid Alert System and close monitoring of the implementation of the Code of Practice signed by the online platforms. The Action Plan also foresees an increase of resources devoted to the issue.

High Representative/Vice President Federica Mogherini said: “Healthy democracy relies on open, free and fair public debate. It’s our duty to protect this space and not allow anybody to spread disinformation that fuels hatred, division, and mistrust in democracy. As the European Union, we’ve decided to act together and reinforce our response, to promote our principles, to support the resilience of our societies, within our borders and in the neighbourhood. It’s the European way to respond to one of the main challenges of our times.” 

Andrus Ansip, Vice-President responsible for the Digital Single Market, said: “We need to be united and join our forces to protect our democracies against disinformation. We have seen attempts to interfere in elections and referenda, with evidence pointing to Russia as a primary source of these campaigns. To address these threats, we propose to improve coordination with Member States through a Rapid Alert System, reinforce our teams exposing disinformation, increase support for media and researchers, and ask online platforms to deliver on their commitments. Fighting disinformation requires a collective effort.”

Stepping up detection, response and awareness

The Action Plan – prepared in close cooperation also with Commissioner for Justice, Consumers and Gender Equality Věra Jourová; Commissioner for Security Union Julian King and Commissioner for Digital Economy and Society Mariya Gabriel – focuses on four areas key to effectively build up the EU’s capabilities and strengthen cooperation between Member States and the EU:

Improved detection: Strategic Communication Task Forces and the EU Hybrid Fusion Cell in the European External Action Service (EEAS), as well as the EU delegations in the neighbourhood countries will be reinforced with significant additional specialised staff and data analysis tools. The EEAS’ strategic communication budget to address disinformation and raise awareness about its adverse impact is expected to more than double, from €1.9 million in 2018 to €5 million in 2019. EU Member States should complement these measures by reinforcing their own means to deal with disinformation.  

Coordinated response: A dedicated Rapid Alert System will be set up among the EU institutions and Member States to facilitate the sharing of data and assessments of disinformation campaigns and to provide alerts on disinformation threats in real time. The EU institutions and Member States will also focus on proactive and objective communication on Union values and policies.

Online platforms and industry:The signatories of the Code of Practice should swiftly and effectively implement the commitments made under the Code of Practice, focusing on actions that are urgent for the European elections in 2019. This includes in particular ensuring transparency of political advertising, stepping up efforts to close active fake accounts, labelling non-human interactions (messages spread automatically by ‘bots’) and cooperating with fact-checkers and academic researchers to detect disinformation campaigns and make fact-checked content more visible and widespread. The Commission, with the help of the European group of regulators in charge of audio-visual media services, will ensure a close and continuous monitoring of the implementation of the commitments.

Raising awareness and empowering citizens: In addition to targeted awareness campaigns, the EU institutions and Member States will promote media literacy through dedicated programmes. Support will be provided to national multidisciplinary teams of independent fact-checkers and researchers to detect and expose disinformation campaigns across social networks.

Finally, the Commission is today also reporting on the progress made in tackling online disinformation since the presentation of its Communication in April 2018.

Next steps

The European Commission and the High Representative will develop and implement the measures set out in the Action Plan, in close cooperation with Member States and the European Parliament.

With a view to the European elections, the Rapid Alert System will be set up by March 2019. This will be complemented by further strengthening relevant resources.

The signatories of the Code of Practice will have to provide the first implementation update to the Commission by the end of 2018, which the Commission will then publish in January 2019. Between January and May, the online platforms will have to report to the Commission on a monthly basis. The Commission will also carry out a comprehensive assessment of the implementation of the Code of Practice in its first 12 months. Should the implementation and the impact of the Code of Practice prove unsatisfactory, the Commission may propose further measures, including of a regulatory nature.

Background

The European Union has been actively tackling disinformation since 2015. Followinga decision of the European Council in March 2015, in order to “challenge Russia’s ongoing disinformation campaigns“, the East StratCom Task Forcein the European External Action Service (EEAS) was set up. The Task Force, together with the relevant Commission services, focuses on effectively communicating the EU’s policies towards its eastern neighbourhood; strengthening the overall media environment in the eastern neighbourhood, including providing support for media freedom and strengthening independent media; and improving the EU’s capacity to forecast, address and raise awareness of pro-Kremlin disinformation activities.

In 2016, the Joint Framework on countering hybrid threats was adopted, followed by the Joint Communication on increasing resilience and bolstering capabilities to address hybrid threats in 2018.

In April 2018, the Commission outlined a European approach and self-regulatory tools to tackle disinformation online, including an EU-wide Code of Practice against Disinformation, support for an independent network of fact-checkers, and tools to stimulate quality journal­ism. On 16 October, the Code of Practice was signed by Facebook, Google, Twitter and Mozilla as well as the trade association representing online platforms and trade associations representing the advertising industry and advertisers.

In his 2018 State of the Union Address, President Juncker also put forward a set of concrete measures to make sure that next year’s European Parliament elections are organised in a free, fair and secure manner. The measures include greater transparency in online political advertisements and the possibility to impose sanctions for the illegal use of personal data in order to deliberately influence the outcome of the European elections.

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Leave not stay? EU approves UK exit

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On November 25, leaders of the EU member states approved an agreement on the withdrawal of Great Britain from the Union. The last objections, voiced by Spain, were lifted after Madrid received “assurances from the British government concerning Gibraltar.” Now the British Prime Minister Theresa May will have to secure the approval of the country’s parliament. This may prove to be more difficult than reaching agreement on Brexit with member of the European Union. According to commentators, few, if any in the UK, endorse the agreement in its present version. If backed by the British Parliament, the deal will then have to be favored by a simple majority of the European Parliament. Afterwards, the EU Council will hold a vote, in which the support of at least 20 member countries is required, representing at least 65% of the Union’s population. No endorsement by national parliaments is required. Should the decision receive the approval of all parties involved, the exit procedure will start on March 29, 2019. The transition period will last at least 18 months.

Last week, the text of the Brexit agreement, which is nearly six hundred pages long, was finally approved. Next, British Prime Minister Teresa May eventually succeeded in winning the support of most Cabinet members. At the same time, a number of ministers, including Dominic Raab, who is in charge of exiting the EU, resigned in protest against the final version. Now, the British Parliament is to vote on the bill to achieve agreement with the EU on the terms of the exit in early December. In addition to the text of the Agreement, a Political Declaration has been drafted which briefly describes the main principles of further relations between the UK and the EU, including the positions of the two parties in future negotiations on a trade agreement.

The 17-month negotiations marathon was extremely difficult. Triggered largely by discontent about the so-called “uncontrolled” influx of migrants, Britain’s exit from the EU quickly turned from a “technical” issue into one of the main challenges to the future of the Union. The EU’s position of late has been to “minimize the damage from Brexit”. In early September, when the third round of negotiations between London and Brussels came to a close, most observers said, it fell through. It was only by mid-November that the parties had harmonized their positions on the financial conditions of the exit, the protection of the rights of EU citizens in the United Kingdom and the British in Europe, as well as on the “consistency of talks about the future”.

At present, the outcome for the EU looks fairly beneficial. According to The Economist, the British authorities have failed to achieve more than half of their original goals. London’s independence from the EU in matters of trade and customs regulation has been postponed at least until 2021. Until then, the UK will remain within the regulatory procedures of the EU Customs Union and will continue to live by the standards of the EU’s common market and their interpretation by the European Court of Justice. The UK will pay the EU about £ 39 billion in a one-off payment and there might be additional payments in the future. Instead of signing a comprehensive free trade agreement by March 2019, which London had sought to secure so much, a Political Declaration was approved which states the parties’ intention to conclude such an agreement “in the future.”

What can be seen as success for the UK is the cessation of the free movement of people between the UK and the EU. However, the approved version of the Brexit agreement envisages visa-free travel for both Europeans and the British “for tourist or business purposes.” Finally, London managed to secure the preservation of the “transparent” land border between Northern Ireland and Ireland. At the same time, it had to be paid for with the de facto retention of Northern Ireland within the EU’s jurisdiction, pending “further arrangements” to be reached during the transition period – that is, until December 2020 at the earliest.

The two leading EU countries – Germany and France – have managed to demonstrate the Union’s strong unity in the face of outgoing Britain. The Brexit Agreement was clinched on Brussels’ terms, which imply de facto payment, in the literal and figurative sense of the word, of a sort of indemnities. Meanwhile, it may turn out that the tough stance of Paris and Berlin on Great Britain will not bring any special political dividends either to Macron, whose reformist ideas are garnering less and less support in the EU, or to Merkel, who announced her intention to resign as chancellor by 2021. Finally, the mounting friction between Brussels and Warsaw, Budapest, Vienna, and now, Rome, shows that the deep-seated causes that underlie Britain’s choice of two years ago to vote for leaving the EU, are still there. And the position of Britain’s opponents who are trying, in the name of deepening EU integration, to turn a blind eye to problems for which there can be no politically correct solutions, is triggering ever more irritation on the part of European voters. Meanwhile, there is only 6 months to go before elections to the European Parliament are due to take place.

In turn, Theresa May is convinced that she has succeeded in achieving “the best deal possible.” Finance minister Philip Hammond has described the deal with the EU as “the best option for the British economy.” Meanwhile, this agreement has cost May a lot politically. In addition to resignations among Cabinet members, a number of parliamentarians from the Conservative Party persist in their attempts to raise the issue of confidence in the prime minister. The final document is subject to serious criticism, both by opponents and supporters of Brexit, including a considerable number of outspoken representatives of the Conservative Party. For example, Boris Johnson, one of the trailblazers of Brexit, a former foreign minister, and a favorite in the so far unofficial campaign for the post of prime minister, has voted the version of the Agreement signed with the EU as “a huge mistake.” According to Johnson, by approving the current text of the agreement “Britain will become a satellite state.” In this regard, experts anticipate serious difficulties, up to the rejection of the Agreement, or, at least, a significant delay in terms of passing the text through the British Parliament. A negative result will require the government to submit a new action plan within three weeks, but no later than January 21 of next year.

Teresa May’s major problem is that for success she needs more than the votes of her party. A small majority in parliament is provided by the Northern Irish Democratic Unionist Party (DUP). However, many DUP members are extremely dissatisfied with the de facto preservation of EU regulation in Northern Ireland, which is enshrined in the Brexit Agreement. In their opinion, such a “compromise” “undermines the unity of Britain.” In addition, a week ago, not only the majority of opposition MPs, but also several dozen Conservatives came out against the May plan. According to critics, the deal agreed by May forces the UK to continue to follow EU regulations for an unspecified period of time. While doing so, London will not be able to influence decisions taken in Brussels, nor will it be able to withdraw from the Agreement unilaterally. Thus, the likelihood  of a negative vote in the House of Commons is estimated as fairly high. Besides, the mounting contradictions within the ruling circles of Great Britain may provoke a vote of no confidence in Prime Minister May before the agreement is submitted to parliament. The loss of confidence in the prime minister would lead either to the arrival at Downing Street of a supporter of a tougher course on the EU, or to early elections. In both cases, the chances of Britain exiting the EU without any agreement will increase significantly.

According to the Times, members of the House of Commons will have to choose between a “bad deal” and two alternatives, which are likely to be even worse. If parliamentarians vote against the May plan, Britain will either leave the EU without any agreement at all – “tough Brexit”, or will hold a second referendum, in the hope that this time the people will vote to maintain membership in the European Union. Both options are extremely risky. ‘Tough Brexit’ can trigger a massive political and socio-economic crisis. “Another referendum will further divide the already divided country, make the population angry over the need for another voting, will further complicate relations with Brussels, and on top of that, it does not guarantee that the result will be different”.

It cannot be ruled out that there are quite a few in Europe who, deep in their hearts, hope for such a development of events. Brexit without an agreement would mean that Britain would have to build legal relations with continental Europe almost from scratch, that is, in such a way which will demonstrate to all potentially “hesitant” members of the EU that attempts to undermine the Union will bring them only huge losses and damages. And another referendum as such would deal a substantial blow to euro-skeptics and “populists” of every description. An even greater effect would be London’s rejection of Brexit. This would seriously strengthen the position of supporters of European integration in the context of their struggle for the posts in the EU executive and legislative branches in 2019.

Thus, chances are still high that London, with or without a “deal”, will have to pay the highest possible price for independence. Against this background, the incumbent Prime Minister Theresa May is rapidly losing popularity, both among voters and within her own party. As the voices of supporters of the “re-referendum” on EU membership are getting louder, the question that arises is whether the success, albeit a compromise, which Downing Street has achieved so far, will be just another Pyrrhic victory, of which the British history has seen so many. Or will Brexit give a new impetus to the development of the United Kingdom? No one can predict now.

First published in our partner International Affairs

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