Thursday, 17 January 2019

GUardian faces two ways

As ever, of course. They lead today with a confident statement that the Chancellor is about to take no deal off the table, citing a call he had with 'business leaders'. But half-way down the column, the paper reports: 'evidence of cabinet divisions when the Brexit secretary, Stephen Barclay, who was also on the call, said that taking no deal off the table would weaken the UK’s negotiating hand.'

M. (banging on and on) Kettle is evidently puzzled that May could lose a vote on her deal and then win a vote of no confidence. It's not the Burkean view of Parlliament! He thinks the only way forward is for May to compromise (she has already announced she will talk with other party leaders about what to do). He seems puzzled that 'She remains foolishly focused on the priority of persuading Tory and DUP rebels to support her, not on looking for agreements with Labour or other opposition MPs' He really thinks there must be some underlying consensus among sensible people -- the common sense of the petit bourgeoisie.

The Tory Brexiteers must just be ignored. Kettle hints at the basis for his support for the EU (but not very extensively): '[Brexiteers] don’t care about climate change, the “just about managing”, the union or Ireland' The last two have always puzzled me as Guardianista enthusiasms.

Kettle says:

She has to be ready to compromise, and to change her red lines. She has to be open to ruling out a no-deal exit, to extending article 50, to a form of permanent customs union that would effectively eliminate the Northern Ireland backstop problem, and to guaranteed regulatory alignments with the single market [i.e. not leave at all]

The result of compromise (opting for 'Norway') would offer a typical Grudina solution: 'All this would mean Britain leaving the EU – which is why it would stick in the throat of us pro-Europeans – but it would keep Britain a more European society.' Maybe J Hunt was right when he said that Remainers would flake if they could only be reassured that the UK would remain 'European', without specifying what that means (presumably no visas for travel at the trivial level,and a neo-liberal regime that installs social liberalism in the ECJ rather than in any inconvenient elected body at the most sinister).

Elsewhere in the same rag, the holy L Elliott contunues in his lonely task:

Those with serious wealth in Britain have always been worried that Brexit will lead to radical change...There’s no question that opting for the quiet life has its attractions....

There will be economic costs of Brexit. Elliott dimisses the catastrophe predicted by the Bank of England: 

a worst-case scenario and the Bank had to throw in the kitchen sink to arrive at it. The idea, for example, that interest rates would rise by four percentage points after a no-deal Brexit is implausible. More likely, the Bank would join with the Treasury in using every available policy tool – including lower interest rates – to boost growth.. 

He quotes another prediction by another set of economists: 'forecasts that the economy will grow by 1.4% this year if May’s deal is eventually agreed, by 1.5% if a delay to the article 50 process leads to a softer Brexit, and by between 1% and -0.2% in the event of no deal, depending on whether it is orderly or not.'

He goes on:

[But] why bother suffering any cost at all if it can be avoided by leaving things as they are? That seems like a reasonable argument, but in reality it is based on a series of doubtful assumptions...The first is that voters care only about economic growth. But if that were the case, they would support fracking and concreting over the green belt, both of which would lead to higher levels of activity. The second – voiced by business lobby groups – is that it is not possible to do better than the status quo because unemployment is low, real wages are growing, the City is the world’s financial hub and the UK is an attractive destination for inward investment....The third – shared by the European commission and some in the remain camp in the UK – is that there is nothing much wrong with Europe either. The EU is the world’s biggest market; the four freedoms allow for the movement of goods, people, money and services across the continent; and the euro has been a success.

By contrast:

Yet in reality the UK has malfunctioned badly since the 2008 financial crisis, suffering a prolonged period of weak productivity growth and flatlining living standards. Investment has been weak. Most of the jobs created have been low-wage and low-skill...As for the rest of Europe, the eurozone was even slower to recover from the crash, in part because of the design flaws of monetary union and in part because its addiction to neoconservative economic dogma resulted in supercharged austerity programmes...Brexit, the gilets jaunes protesters in France, the terrible pain inflicted on Greece and the support for the League/Five Star government in Italy all tell their own story. Europe is alive with political discontent that reflects the demand for deep and urgent reform, but the chances of getting it are less likely if the status quo prevails.


The left’s case for Brexit has always been based on the following notions: the current economic model is failing; socialism is needed to fix it; and the free-market ideology hardwired into the EU via the European Central Bank, judgments of the European court of justice and treaty changes will make that process all but impossible without a break with the status quo...It is theoretically possible that in the event of a “Brexit in name only” or no Brexit at all, policymakers will push ahead with what’s needed in order to make a reality of the slogan “a reformed Britain in a reformed Europe”. Possible but not all that plausible, given that it would require breaking up the euro, more autonomy for individual countries to intervene in the running of their economies, and a simultaneous philosophical U-turn in the big member states...Much more likely is that the pressure for change will dissipate and the real grievances of those who voted for Brexit will be quietly forgotten. The softer the Brexit, the more convinced the EU will be that it has been doing the right thing all along

As a result:

Leave voters will feel they have been victims of an establishment stitch-up. The anger will not go away and will eventually resurface..The risk is that the losers will be the biggest supporters of the EU – the liberal left. And the biggest winners will be the extreme right.


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