Richard North, 26/06/2017  
 


Briefly less concerned with immediate events, I've been upgrading the First Year of Brexit, adding a front cover to it, designed by a reader (pictured) and trimming forty pages from the length. If anyone who has already bought a copy and wants the upgrade, drop me an e-mail and I'll send you a copy. Otherwise, you can buy one for £4 from the link on the sidebar.

Going back through the year was extremely useful, reminding me of half-forgotten events and, in particular, illustrating how much I've learned over the year.

There is an interesting dynamic at play here, in that you tend to think you know about many things until you start to write about them. It's then that you discover how little you know, making the process of writing the blog one of the most educative processes I know. If readers have learned a great deal – and many tell me they have – I have learned a great deal as well.

Speaking with other bloggers, I find they share the learning experience which one gains from writing. In the case of EUReferendum.com, though, there is the volume effect, and the sheer relentlessness of the coverage. In the space of a year, writing over 440,000 words on one subject (before editing) with a post almost every day, linking to over 2,000 references (from newspaper cuttings to reports hundreds of pages long), covering over 1,000 A4 pages, cannot but help make its mark.

Of the previous coverage, one post I edited yesterday I had posted in early July last year, drawing attention to a paper by the Robert Schuman Foundation, which explored how the UK could stay in the Single Market.

What was particularly interesting were the observations on the EEA, where it was suggested that the UK could explore the opportunity to revise the EEA rules so that the non-EU members of the latter have a right to vote (like Norway, for example) on policies in which they participate, notably those involving the Single Market.

This, as we now know (as recorded in Monograph 9), was the original intention of Jacques Delors, which had been articulated as early as 1987 and had begun to take form as the European Economic Space (EES), with "houses" in a European "village", each with equal decision-making rights.

In this scenario, the Robert Schuman Foundation says, "the UK would continue to participate in the internal market and apply the corresponding rules", adding that it would have to contribute to the EU’s budget, "but only for certain policies" – presumably to cover things like the decentralised agencies in which we continued to participate.

Almost as a throw-away line, the Foundation also said that freedom of movement would continue to apply, "but the EEA Agreement provides safeguard mechanisms that can be activated unilaterally".

After all the pompous, self-opinionated rubbish that I've had to read, this is so refreshing. Of course the EEA Agreement provides for safeguard mechanisms, and of course they can be activated unilaterally (by Efta states). If the Robert Schuman Foundation knows this, you can bet that the Commission knows it – and has as few hang-ups as the Foundation. The measures are a treaty provision and there to be used.

But what is also especially encouraging is the thought that this type of scenario, "might eventually lead to the realignment of the Economic and Monetary Union (EMU) with the European Union". Thus, we see the "greater EU" splitting into two parts – the one as a fully-developed economic entity called the Eurozone, and the other the EEA, which would offer an institutional framework for the single market.

This is very much along the lines of Flexcit, where Brussels no longer has the exclusive right to manage the Single Market, the functioning of which becomes the shared responsibility of all its members. Says the Foundation, a modification of the EEA Agreement would therefore allow to settle several difficulties facing the EU at present, whilst providing welcome clarification for citizens, as well as economic and financial actors alike.

It adds that this type of arrangement might also offer an alternative to candidate countries, which could opt to enter the EEA rather than the EU, as was originally mooted for the former Soviet satellites. And there is no reason why we should see it limited to candidate countries. The EEA should also open its doors to the Russian Federation and to non-aligned states.

Specifically, the Foundation says that the EEA would be open to States which want to take advantage of the internal market above all, without taking part in all of the other aspects of integration. It is highly likely, it says, that the UK would be tempted to join the EEA.

With simple logic, it says that this kind of arrangement would be advantageous to the UK in that it would offer it a compromise, thereby avoiding a brutal break from the EU. Crucially, it adds, it would also provide a solution to the Scottish and Northern Irish questions.

The UK would continue to participate in the internal market and apply the corresponding rules, which it would continue to help define. Of course it would have to contribute to the EU budget but only in certain policy areas (the UK would no longer take part for example in the common agricultural policy).

Bringing us up-to-date, yesterday Brexit Secretary David Davis was on the Marr show – about the only Brexit news in an otherwise thin day. But about the only things of even marginal interest was his assertion that he was "pretty sure" there would be a deal, and that the transitional period would run from one to two years.

Neither statement is particularly encouraging. There are many levels of deal potentially on offer and there is nothing to say that Davis can bring home anything that will be needed by our businesses. And, as to the "one to two years", this is so unrealistic as to be laughable.

One must remember though that Davis has a recent history of making unrealistic statement and then altering his position later one – right up to the "summer row" that never was.

What we continue to see is a poverty of vision and a generally response-driven strategy coming out of Downing Street. But, the closer we get to the crunch, the closer we get to the reality that there is no way on God's earth we can conclude a trade agreement in the time - "impossible means impossible". We must focus on a transitional agreement.

Here, reality hits us between the eyes. Following on from the Robert Schuman Foundation, we can use the EEA acquis and seek a sensible "modification" which could overcome the worst feature of the Agreement and give us something we could live with.

Even though the end product might look very much like the EEA Agreement, there is no reason why it should keep its name. Something like a European Enterprise Zone (EEZ) might be sufficient to calm nerves, which red-white and blue "bespoke" additions could tailor it for the UK. In fact, the EEA Agreement is already a series of bespoke agreements stitched together under one treaty roof.

At a domestic level, unless she is to be bogged down in the aftermath of Grenfell Tower, Mrs May has got to take the initiative. She must storm the high ground, or be seen to be reacting to the EU's agenda. In other words, we need a plan. But it needs to be bigger than that. We need to engage the EU, and make them feel they have a dog in the fight.

Given that it has been floated by the Robert Schuman Foundation, I'm sure there would be political support in Europe for a "modified" EEA. Oddly enough, 2019 is the 25th anniversary of the EEA Agreement coming into force, so there is some logic in tying in Brexit with EEA enhancement and merging the agendas.

In a nutshell, we buy time by agreeing a transitional agreement - leading up to March 2019 when, with the "colleagues" we jointly announce (alongside Efta) the commencement of talks to build a 21st Century version of the EEA, with a target for completion (say) of 2025.

We might even call it, "Agenda 2025", and the EU could also take in reform and rationalisation of its Neighbourhood Policy, building a "positive, forward-looking" agenda. That way, we all own a slice of the action and it justifies the political investment. It is no longer just about Brexit. UK withdrawal has become a catalyst for something much bigger and better.

And isn't it just amazing what a year of learning can do.






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