A dark day for the UK

Yesterday the UK Government served notice that it intends to leave the European Union. We are leaving the second largest economy in the world, severing links which have kept the peace and brought us together with friends and neighbours for over 40 years. We have created uncertainty and instability in the lives of millions of people who have moved here from other parts of the EU, or have moved from here to other parts of the EU. We have given up our influence, our friends, and our economic future.  We have abandoned the idea that we could work better with our neighbours to solve major problems like climate change, product safety and quality, and decent working conditions. We have abandoned the idea that it is better to have a single European Court to rule on the implementation of agreements between European countries

For 40 years we have been one of the “big three” nations in the EU, with a major say in policy decisions. Membership magnified our influence on the world stage, and not much ever happened in Europe without the agreement of Germany, France and the UK. That is one reason why the overwhelming majority of MPs of all parties voted remain. Those who want to “take back control” over laws and regulations can rarely identify any specific regulations which they actually want to remove except things like the working time directive, which protect workers’ rights. On many progressive issues it is our Government which has obstructed progress.

Opinion polls suggest that the most important reason for people to vote leave was to control immigration. However, almost all the people living here who have come from other parts of the EU are either working, or are students. So our economy needs them. Since freedom of movement of people, capital, goods and services is the fundamental principle of the Union, full access to the single market was never going to be compatible with controlling movement of people into and out of the UK. So we are throwing away our free trade with our biggest market (44% of all our exports go to other EU countries), and our vote on how the Europan ecoomy is managed,  in return for controlling immigration. But if we reduce it, labour shortages will severely damage our economy: if we don’t reduce it, we will have given up our political influence and economic strengths in return for nothing.

We are leaving on the basis of a referendum which was explicitly advisory, where a narrow majority voted leave, and the leave campaign claimed that leaving would not prevent us remaining members of the single market. The Government’s claim that “65 million people want us to get on with Brexit” is demonstrably untrue. 11 million are under 15 and have no vote. Of those eligible to vote in the referendum 37% voted to leave, 35% voted to remain, and 28% did not vote. It is reasonable to claim therefore that at the time of the referendum 63% of the electorate did not want to change the status quo and leave the EU. Opinion polls since show that few people have changed their minds in either direction. The Government, and the leave campaigners have consistently tried to maintain the myth that the referendum result was a clear and overwhelming decision.

As of March 2017, we have no idea what kind of settlement will emerge from the next two years.  The process has started, and no political party expects to reverse the decision until the position is much clearer. However, it is entrirely possible that the terms of our leaving will be much worse, economically, socially and politically than remaining members, and it is possible that the majority of the electorate will agree, when the picture becomes clear. This is particularly likely since most young people, and most people with higher education qualifications voted to remain and most old people, and people without qualifications voted to leave. Over two years the balance between these two groups will inevitably shift in favour of the former, as young people enter the electorate and older people die.

The Government has promised that at the end of the negotiation Parliament will have a vote on whether to accept the deal (just as the Parliaments of the EU and the other 27 member states will). However, this plan will be a binary choice, between the deal negotiated or leaving without a deal, in which case a mass of regulations will be left in limbo, and we will be trading with the EU on World Trade Organisation terms, which will introduce tariffs and customs checks on many of our exports and imports.

This does not need to be the only choice. There will, in reality, be four options at the end of negotiations:

  1. Leave the EU on the terms negotiated. At present we have no idea what those terms might be. We know something of what our Government is asking for, but we cannot know what the other parties might be prepared to accept. There are strong political reasons why this may not be generous to the UK.
  2. Leave the EU but remain in the European Economic Area (like Norway). This is possible, since we are members of the EEA under a separate Treaty. EEA membership includes full membership of the single market, but not all the regulations (Norway opts out of the Fisheries policy). EEA members can restrict the free movement of people in specific circumstances.
  3. Leave the EU without agreement, reverting to World Trade Organisation rules. This would mean the immediate imposition of tariffs on British exports to the EU and to all other countries. The economic consequences would almost certainly be worse than the previous two options.
  4. Remain a member of the EU on the current terms. This might be achieved by our formally withdrawing our Article 50 notice. Whether this is possible is unclear, since the EU Treaty does not specify a right to withdraw Article 50 notice but neither does it prevent this. The draft response to our Article 50 letter from the European Parliament explicitly says that we can withdraw our notice, and this is currently under consideration in the Irish Courts. It would ultimately be a matter for the European Court of Justice to decide. Alternatively we could ask the other 27 states to agree to us withdrawing our Article 50 notice. They might wish to do this, and if they all agreed, they could legally allow this (members of the EU make the rules).

I believe that the final decision should rest with Parliament, considering all four options. Since the Brexit decision was made by referendum, it might be wise to undertake a referendum on the four options, to advise Parliament. This would avoid giving disproportionate weight to “the will of the people” as expressed at a particular moment in 2016.  Such a referendum would be less divisive than the 2016 one, since there would be four choices on offer.

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