How is the EU supposed to manage post-Brexit relations with a United Kingdom that won’t keep its word?
For the second time in six months, Britain has reneged on its Irish border commitments without consulting the EU or Ireland.
Northern Ireland is still in the European single market for goods under the EU-UK treaty. The rest of the United Kingdom is not, creating new regulatory barriers for British companies. They have struggled to cope. Supermarket shelves in Northern Ireland have gone empty. Parcels are stranded in Great Britain. The government of Boris Johnson has temporarily lifted the new rules to give businesses more time to adjust.
It’s not unreasonable to ask for a few more months of delay. But such a request should have been discussed in the Joint Partnership Council, which was created by the treaty on future EU-UK relations to manage precisely these situations. Instead, Britain acted unilaterally.
Not a lot of substantive comments, unfortunately, although I had good discussions with those Scots who argued I had overstated the risks of dissolution and underestimated the opportunities.
No, nearly all replies hounded me for describing Scotland as a “region” and not a “country”, which I know it is.
The reason I use “country” as well as “region” is that Scotland’s constitutional status — a country within a country — can be confusing to readers who aren’t familiar with the UK. That’s all. I meant no offense. Read more “Scotland Is a Country!”
Massive rescue programs have prevented business failures and unemployment on the scale of the Great Depression, even though last year’s economic contraction was nearly as bad. The European Union agreed a €750 billion recovery fund, financed, for the first time, by EU-issued bonds. The money comes on top of national efforts. The United States Congress passed a $2.2 trillion stimulus, worth 10 percent of GDP, in March and added another $484 billion in April. An additional $900 billion in relief was included in this year’s budget.
Joe Biden, the incoming American president, wants to spend $2 trillion more over the next four years to transition the United States to a greener economy and create a public health insurance program. Corporate tax would go up from 21 to 28 percent.
In Spain, a socialist government has introduced the biggest budget in Spanish history — partly to cope with the impact of coronavirus, but also to finance digitalization, electric car and renewable energy subsidies, infrastructure and rural development. Taxes on income, sales and wealth are due to increase.
In the United Kingdom, the ruling Conservative Party is building more social housing and it might renationalize rail. Unlike during the last economic crisis, it does not propose to cut spending even though tax revenues are down.
Same in the Netherlands, where all the major parties agree the government needs to do more to reduce pollution and prevent people at the bottom of the social ladder from falling through the cracks.
I’m not opposed to more government per se. I’ve argued that the United States should imitate countries in Northern Europe to improve its public services, particularly child and health care and housing.
I haven’t read the 1,246 pages of the EU-UK trade agreement, so I’m going to rely on trusted sources to make sense of the accord.
First, a couple of notes on terminology.
This treaty, the EU-UK Trade and Cooperation Agreement, governs the future cross-Channel relationship. It is due to go into effect on January 1, although it will still need to be ratified by the parliaments of the European Union and the United Kingdom as well as the European Council.
Last year’s withdrawal agreement regulated Britain’s exit from the EU. It provided for a one-year transition period, which expires on December 31, and included a protocol for Northern Ireland, which keeps the province in the European single market for goods and effectively (but not legally) in the EU customs union to avoid the need for a border with the Republic of Ireland.
Both treaties have been unhelpfully referred to as “the deal” in the English-speaking press, but only the withdrawal agreement was crucial. The trade agreement, while good to have, since Britain does most of its trade with the EU, was always optional. Read more “What to Make of the EU-UK Trade Agreement”
Two months ago, I argued Britain was once again the sick man of Europe. It had the second-highest per capita COVID death rate among major countries. Economic output had fallen 20 percent from the year before.
The crisis wasn’t lost on policymakers. The dual shock of coronavirus and Brexit — Britain formally left in 2019 but still applies EU rules and regulations this year — has led to something of a quiet revolution in Whitehall: the potential rebirth of the interventionist state.
There is still much wrong with how the British government has handled both events, the poster child for COVID being the decimation of the British aviation and travel industry as well as the arts. Not since the closing of the coal mines has an entire industry shrunk so dramatically.
British prime minister Boris Johnson has been accused of “legislative hooliganism” and running a “rogue state” for bringing forth legislation that would breach international law.
The Internal Market Bill, which Johnson’s government is planning to enact in order to establish the legal framework for Britain’s internal market following the end of the Brexit transition period, would contravene the withdrawal agreement Britain has negotiated with the EU.
The withdrawal agreement subjects Northern Ireland to EU rules on exports and state aid in order to avoid the need for a border with the Republic of Ireland. The open border has helped keep the peace between Catholics and Protestants in the region for twenty years.
Politico reports that Spain has proposed to include Gibraltar in the EU’s passport-free Schengen Area to facilitate cross-border travel.
The arrangement would be similar to Liechtenstein’s, which is not in the EU but a member of Schengen. Andorra is negotiating a similar status. Monaco, San Marino and Vatican City are in neither the EU nor Schengen but maintain open borders.
The proposal is backed by Gibraltar’s chief minister, Fabian Picardo.
96 percent of his citizens voted to remain in the EU in the 2016 referendum, but they were overruled by majorities in England and Wales.
Although Britain formally left the EU at the end of 2019, the bloc’s rules and regulations still apply until the end of 2020.
Gibraltar, like Britain, was never in the Schengen Area, but it was in the EU single market, allowing it to trade freely with the EU’s 27 other member states. Before the pandemic, commuters were typically waved through by Spanish border police. Read more “Spain Proposes Schengen Membership for Gibraltar”