Setting Sail |
Too much to hope for, I fear. The Scottish Government still wants to undermine the UK's negotiators with plaintive noises off, while many Remainers seem far more anxious to be proved right than they are for the country's wellbeing.
It might help if
Remainers remembered the referendum campaign featured a dodgy
prospectus on both sides and that Leavers weren't all ignorant and
gullible; in fact we included several high-powered economists. The
surging exports and solid economic growth since last June don't
really resemble the catastrophe Remainers predicted, nor was a
punishment budget required.
Moreover it would make
more sense complaining about the Brexiteers' failure to deliver if
the Brexiteers actually controlled the government, which they don't. When did Theresa May promise loads of money
for the NHS?
Let us consider the two
biggest projects of the EU. (Since we opted out of both
of these, we could only ever have been peripheral members henceforward anyway.)
- The Euro is an economic disaster which can't be admitted because of the political fallout that would result, so they just let it cause thirty percent unemployment and chronic financial crisis in southern Europe instead. If we lived in Greece we might learn what it really means to have something to feel pessimistic about.
- The Schengen Agreement is collapsing under the weight of uncontrolled migration and frontier fences have gone up all over Eastern Europe.
I have said before that political will is not enough to support a project to link so many economies by a common currency. The fudging
of membership criteria did not begin with Greece, it goes right back
to the foundation of the single currency when Italy's debt was almost
twice the permitted percentage of GDP and France only qualified for
the fiscal deficit criterion by a one-off privatisation of
Thomson.
The point politicians failed to appreciate then and now is that the Eurozone membership criteria were not mere inconveniences to be circumvented but genuine economic convergence indicators. If you link divergent economies by a single currency you deprive weaker economies of the disequilibrium-corrective possibilities offered by the balance of payments and by currency devaluation, leaving only rising unemployment to provide a quite inadequate escape valve.
This is why it is not just Greece that has experienced severe dislocation but also Cyprus, Italy, Spain, Ireland etc. Even France has suffered. Although Germany has seen benefit from an undervalued currency it is now paying the price in terms of ever-increasing transfers to the hopelessly indebted zone members.
Does anyone
really think the EU will return to being an economic powerhouse
anytime soon? On the other hand outside the EU we have huge
potential to develop new trading relationships with parts of the
world that are enjoying rapid growth. The UK is not trying to make enemies or wishing ill to the continuing EU. We are simply seeking a wider circle of friends.
Though peevish voices in Europe may declare the UK must suffer 'pour encourager les autres' it is to be hoped that economic sanity will be allowed to prevail over political pique. Beggar your neighbour is not a good strategy for a continent that needs all the boost from trade it can get.
Though peevish voices in Europe may declare the UK must suffer 'pour encourager les autres' it is to be hoped that economic sanity will be allowed to prevail over political pique. Beggar your neighbour is not a good strategy for a continent that needs all the boost from trade it can get.
And really - can they think of no better arguments for membership of the EU than to show how horrible they can make it for those who want to leave?