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    How Britain Has Seen Its Place in the World from 1815 to 1955

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    Has Britain Achieved a Post-Racial Politics?

    The most closely guarded secrets of the British government are currently being reviewed by Priti Patel, the home secretary, or minister of the interior, as she would be described in most countries. It is her duty to receive the reports of the secret services: MI5, MI6 and GCHQ. Patel has to take those most difficult of decisions: which threats from Britain’s enemies to act on and which to ignore.

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    Rishi Sunak holds the economic future of the country in his hands through his control of the Treasury as chancellor of the exchequer. Kwasi Kwarteng is Sunak’s deputy, as secretary of state for business, energy and industrial strategy. Sajid Javid is in charge of fighting the COVID-19 pandemic.

    Facing them across the House of Commons sits David Lammy, Labour’s shadow foreign secretary. Rosena Allin-Khan is Labour’s minister of mental health, and the woman charged with getting her party from the opposition into government is Shabana Mahmood, Labour’s national campaign coordinator.

    Minority Representation

    These men and women have little in common politically. Some are passionate capitalists, others fervent socialists. But all are members of Britain’s ethnic minorities. Some have family backgrounds in the Indian subcontinent. Others — an admittedly smaller number — can trace their roots to Africa. It is a little commented-upon fact that in Britain today, ethnic minorities are almost numerically represented in Parliament. Some 14% of the British population has an ethnic minority background, and 10% of MPs elected at the last general election in 2019 are black or Asian.

    The key point is not simply the numbers, but rather that they are as likely to be found on in the governing Conservative Party as they are in the opposition Labour Party. Back in 1987, the situation was very different. Four ethnic minority MPs were elected that year: Diane Abbott, Paul Boateng, Bernie Grant and Keith Vaz. All were Labour members.

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    As the House of Commons Library points out, “Their number has increased at each general election since then — most notably from 2010 onwards … But if the ethnic make-up of the House of Commons reflected that of the UK population, there would be about 93 Members from ethnic minority backgrounds … Of the 65 ethnic minority Members, 41 (63%) are Labour and 22 are Conservatives (34%). There are two Liberal Democrat MPs from an ethnic minority background.” These MPs have not languished in obscurity. They have been promoted to the highest political offices of the land, by both major political parties.

    The policies they would pursue could hardly be more different. Priti Patel has been roundly criticized by Labour for her virulent hostility to unrestricted migration and her determination to crack down on smuggling refugees over the English Channel from France. Her plans for “pushbacks” using the navy to deter migrants have been described as “inhumane, unconscionable and extremely reckless.”

    Patel’s background — her family came to Britain in the 1960s before dictator Idi Amin’s mass expulsion of Asians from Uganda in 1972 — appears to have had little influence on her opinions or policies. Little wonder that she is a favorite of the Conservative right and a potential successor to Boris Johnson as prime minister.

    Zero Tolerance

    The significance of the rise of Britain’s ethnic minorities through the ranks is that neither of the two main parties that dominate the country’s politics can any longer tolerate the kind of overt racism that was once a regular part of British culture. Patel and Allin-Khan may be poles apart politically, but neither would accept policies of the kind that once were espoused by the likes of the Enoch Powell.

    His notorious “Rivers of Blood” speech from 1968, in which he warned against the impact not just of immigration but also of a bill before Parliament designed to fight racism, was widely welcomed. The Conservative right hailed him as a champion, and Labour-supporting London dockers marched to Parliament to show their support.

    Does this imply that racism in Britain is a thing of the past? Emphatically not. But given Britain’s first-past-the-post electoral system, it means that only fringe parties, with little chance of winning seats in Parliament, are likely to take up the issue.

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    Overt racism is still nurtured by a section of British society. The Brexit referendum in 2016 brought out the worst in some communities. The attacks on Poles were particularly disgraceful, given the bravery of their pilots, over 8,000 of whom fought in the critical Battle of Britain over the skies of England during World War II. No fewer than five neo-Nazi groups are banned in the UK, with Patel condemning “evil white supremacist groups, who target vulnerable people across the world.” A third of all terror plots uncovered in Britain emanate from the far right.

    None of this should be ignored. It is not inconceivable that overtly racist politics will rear its head once more in Britain, but neither the Conservative Party nor Labour is likely to support it. Only in extreme circumstances are they likely to flourish. As such, it may be that British politics can today be considered post-racial.

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Value of EU Citizenship in a Post-Brexit World

    In the 1980s, I was born having freedom of movement across Europe, when Britain was part of the European Economic Community. The concept of EU citizenship was formally established in 1993, as part of the creation of the European Union itself, under the Maastricht Treaty.

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    Freedom of movement in Europe was always something I took for granted. I saw Europe as part of our heritage, despite the grumblings of euroskeptics and sly articles in the British press about the perils of straight bananas and the metric system. 

    I traveled a lot in my youth, but travel was never really the issue. Citizens of many countries from outside the EU can stay in the Schengen zone for up to 90 days without a visa. It wasn’t until 2009 that the benefits of being an EU citizen became obvious to me. 

    Free to Work and Study in Europe 

    I signed up for a master’s degree in Brussels, Belgium. The beauty of this was, as an EU citizen, the entire degree cost me only €500 ($560). It was taught in English and full of students from all over the world.

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    There was no paperwork to deal with, no need to prove income, no need to apply for any student visas. Education in Belgium was as open to me as education in my country of origin. And that would have been the same for education in any country in the EU. 

    I stayed in Belgium for two years. During that time, I could work freely without any authorization. I taught English at the European Parliament. I also did a number of freelance jobs on the side. But I could have worked anywhere, from behind a bar, to the top levels of the European institutions. 

    As an EU citizen, I had the right to live and work in Belgium, just as I did with any other country in the EU and the European Economic Area (EEA). No sponsorship needed, no work visa, no permission of any kind. 

    I often traveled back and forth between London and Brussels. The Eurostar was, and still is, the best mode of transport. It takes you directly from the center of one capital into the center of the other. With an EU passport, going through immigration was quick and simple. In contrast, passport holders from outside the EU had to wait in a separate queue, all herded together. 

    I didn’t use my EU freedom of movement rights again for 10 years. But that would be for the final time, as a big change was coming. 

    The Vote That Changed Everything

    In 2016, a majority of British voters decided the UK should leave the European Union. Millions of British citizens would soon lose their EU rights. People with Irish or other European relatives were desperately applying for second passports.

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    The next few years were chaotic, full of political turmoil and tribalism. The Brexit referendum had split the country down the middle, and things would never be the same again.

    After the vote, there was a rapidly closing window of opportunity to move to the EU. I knew that was the only option for me. So, in the early weeks of 2020, I moved to Lisbon, the capital of Portugal. Time was running out by then, with the Brexit transition period in full swing. Within months, UK citizens would be officially relegated to third-country national status. 

    There was no time to waste in securing residency in Portugal. As an EU citizen, it was easy. I landed in Lisbon, took my passport and showed up at the nearest municipal office. Thirty minutes and €15 later, I had a five-year temporary residency document for Portugal. 

    Portugal’s citizenship timeline is five years. All being well, that document will allow me to regain my EU rights sometime in 2025, this time as a proud citizen of Portugal — the country I chose.  

    The EU project is far from perfect. Like any large-scale collaboration of humans, it’s fraught with issues. Yes, there’s corruption. Yes, there’s waste and inefficiency. Despite that, the EU is an ambitious project that emerged out of the devastation of the Second World War. The resulting economic cooperation has kept Europe peaceful ever since. In that sense, it’s doing exactly what it was designed to do.

    Citizen of Another Somewhere

    I don’t like nationalism. It’s too easily misused. And I can’t be proud of something that I didn’t achieve: the coincidence of being born on a certain piece of land. Does that mindset make me a “citizen of nowhere”? If so, that’s good. Thanks for the compliment, Theresa. 

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    As the late John le Carre once said, “If you want to make me a citizen of nowhere, I will become a citizen of another somewhere.” An Englishman all his life, le Carre died an Irish citizen, so disappointed was he at the fallout from Brexit. He was fortunate to have that Irish heritage. Not everyone does. And those that don’t have become second-class citizens in Europe.

    National pride is artificially constructed to hold the nation-state together. It plays on our natural inclinations toward tribalism, which is merely an evolutionary hangover. Benedict Anderson’s classic book, “Imagined Communities,” explains these ideas better than I ever could.

    Perhaps the EU is an “imagined community” too. But countries working together, no matter how flawed the process, is the only route we have to improving the world. It’s a project I’m determined to be part of. And if I can’t do so as a British citizen, then I’ll happily do so as a Portuguese. 

    *[Samantha North is the founder of Digital Émigré, an EU citizenship consultancy.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Risk of a No-Deal Brexit Remains

    The risk that we will wake up on May 1 to find we have a no-deal Brexit after all has not disappeared. The deadline for the ratification by the European Parliament of the trade deal between the European Union and the United Kingdom was due to be February 28. But Parliament postponed the deadline to April 30. It did this because it felt it could not trust the UK to implement the Trade and Cooperation Agreement (TCA) — as the deal is formally known as — properly and as agreed and ratified. 

    This distrust arose because the implementation of the Ireland and Northern Ireland Protocol of the withdrawal agreement — the treaty that took the UK out of the EU — had been unilaterally changed by the British government. If a party to an international agreement takes it upon itself to unilaterally alter a deal, the whole basis of international agreements with that party disappears.

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    The matters in dispute between the UK and the EU — the protocol and COVID-19 vaccines — remain unresolved. The European Union is taking the United Kingdom to court over the protocol, but the court is unlikely to decide anything before the new deadline of April 30.

    In the normal course of events, the TCA between the UK and the EU would be discussed in the relevant committee of the European Parliament, before coming to the plenary session of Parliament for ratification. The next meeting of the Committee on International Trade is due to take place on April 14-15, and the agenda for the meeting has been published. It includes a discussion on the enforcement of trade agreements, the general system of preferences and, significantly, trade-related aspects of the COVID-19 pandemic. It makes no mention of the TCA with the UK.

    Trade-related aspects of the pandemic will inevitably include a discussion on vaccine protectionism, which is a highly contentious issue between the EU and the UK that has poisoned relations and led to bitter commentary in the media. The fact that the committee has not included a discussion of the TCA with the UK on its agenda for what may well be the only meeting it will have before the April deadline is potentially very significant.

    Ratifying the Trade Deal

    The TCA is a 1,246-page document, and its contents, if ratified, will take precedence over EU law. To ratify such an agreement without proper scrutiny in the relevant committees could be seen as a dereliction of the European Parliament’s responsibility of scrutiny. We should not forget the scrutiny that was applied to the much more modest EU trade agreement with Canada. The same goes for the deal with Mercosur states (Argentina, Brazil, Paraguay and Uruguay).

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    Furthermore, the TCA would, if ratified, set up a network of committees to oversee its implementation. These will meet in private and their work will diminish the ongoing oversight by the European Parliament of a host of issues affecting all 27 EU member states. The TCA also contains a system of dispute-resolution mechanisms that will quickly be overwhelmed by work. The TCA has many items of unfinished business, on which the European Parliament will want to express a view. It is hard to see how any of this can be done before the end of April.

    The UK government led by Prime Minister Boris Johnson has adopted a deliberately confrontational style in its negotiations with the European Union. The more rows there are, the happier the support base that Johnson is seeking to rally for his Conservative Party. Johnson’s European strategy has always been about electoral politics, not economic performance. This has led to almost complete confusion between the British government and the EU.

    If the European Parliament ratifies the TCA without there having been seen to be a satisfactory outcome to the EU-UK negotiations about the Ireland and Northern Ireland Protocol and over the export of vaccines, it will be a political setback for Parliament and a source of immense satisfaction for Johnson.

    Yet one should never underestimate the role emotion can play in politics. The entire Brexit saga is a story of repeated triumphs of emotion over reason — and the European Parliament is not immune to this ailment. Boris Johnson could be pushing his luck a bit far this time.

    *[A version of this article was posted on John Bruton’s blog.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    A New European Financial Landscape Is Emerging

    The United Kingdom’s exit from the European single market on January 1 has sent trade in goods plummeting amid much confusion. By contrast, Brexit was carried out in an orderly manner in the financial sector, despite significant movement of trading in shares and derivatives away from the City of London.

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    After five years of radical uncertainty, it has become clear that the European Union and the United Kingdom will be taking separate paths on financial regulations — a financial “decoupling” that means a significant loss of business for the City. Whether the EU financial sector can gain much of what London loses will depend on the EU’s willingness to embrace further financial market integration.

    Smart Sequencing Ensured an Orderly Brexit

    As with the Y2K problem, the Brexit transition could have gone worse. It took more than luck to avoid financial instability along the way.

    First, financial firms on both sides of the English Channel (and of the Irish Sea) worked hard and were able to preempt most of the operational challenges.

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    Second, despite all the recurring high-stakes drama between the UK government and the European Commission, the technical cooperation between the authorities actually in charge of financial stability, primarily the Bank of England and the European Central Bank (ECB), appears to have run smoothly.

    Third, the negotiators phased the process in a smart way. The Brexit Withdrawal Agreement of January 2020 helped reduce uncertainty by ensuring that the UK government would meet its financial obligations to the EU, avoiding what would have been akin to selective default. That agreement kept the United Kingdom in the single market during the transition period beyond the country’s formal exit from the European Union on January 31, 2020. It also set a late-June deadline for the British government to extend the transition period beyond December 31, 2020. As London decided not to do so, that left six months of effective preparation.

    To be sure, whether an EU-UK Trade and Cooperation Agreement (TCA) would be concluded remained unknown until late December. But that mattered comparatively little for financial services, since trade agreements typically do not cover them much. By one count, the 1,259-page TCA (which is still unratified by the European Union) contains only six pages relevant for the financial sector.

    The resulting legal environment for financial services between the European Union and the United Kingdom is unlikely to change much any time soon. Contrary to occasional portrayals in the United Kingdom, no bilateral negotiations on financial services are going on, except for a memorandum of understanding expected this month that is not expected to bind the parties on substance.

    From the EU perspective, the United Kingdom is now a “third country,” in other words an offshore financial center, following decades of onshore status. UK-registered financial firms have lost the right, or “passport,” to offer their services seamlessly anywhere in the EU single market. From a regulatory standpoint, they have no better access to that market than their peers in other third nations such as Japan, Singapore or the United States.

    Equivalence Status for UK Financial Market Segments

    Some segments of the financial sector in these other third countries actually have better single market access than British ones, because they are covered by a category in EU law allowing direct service provision by firms under a regulatory framework deemed “equivalent” to that in the European Union. The equivalence decision is at the European Commission’s discretion, even though it is based on a technical assessment. As a privilege and not a right, equivalence can be revoked on short notice.

    So far, the European Commission has not granted the UK any such segment-specific equivalence, except in a time-limited manner for securities depositories until mid-2021 and clearing services until mid-2022. For the moment, the commission appears to be leaning against making the latter permanent. In most other market segments, the commission will not likely grant equivalence to the United Kingdom in the foreseeable future. This may appear inconsistent with the fact that almost all current UK regulations stem from the existing EU body of law. But the UK authorities (including the Bank of England) have declined to commit to keeping that alignment intact.

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    The commission’s inclination to reduce EU dependence on the City of London is understandable. No comparable dependence on an offshore financial center has existed anywhere in recent financial history. Such dependence entails financial stability risk. In a crisis, UK authorities would not necessarily respond in a way that preserves vital EU interests. Think of the Icelandic crisis of 2008, when Reykjavik protected the failing banks’ domestic depositors but not foreign ones. It is hardly absurd for the European Union to try to reduce such a risk, even if — as appears to happen with derivatives — some of the activity migrates from the United Kingdom to the United States or other third countries as a consequence, and not to the European Union.

    At the same time, the argument that keeping EU liquidity pooled in London is more efficient than any alternative is unpersuasive given the European Union’s own vast size. In addition, the European Commission also follows mercantilist impulses to lure activity away from London, even though these generally do not make economic sense. Added up, these factors provide little incentive for the commission to grant equivalence status to more UK financial market segments, unless some other high-level political motives come into play. None are apparent right now.

    The UK Is Unlikely to Regain Lost Advantage

    How the European Union and the United Kingdom will decouple will not be uniform across all parts of the financial system. Regulatory competition between them may become a “race to the bottom” or “to the top,” depending on market segments and the circumstances of the moment, without a uniform pattern. In any case, such labels are more a matter of judgment in financial regulation than in, say, tax competition.

    In some areas, the European Union will be laxer, while in others, it will be the United Kingdom, as is presently the case between the EU and the US. For example, the European Union is more demanding than the United States on curbing bankers’ compensation but easier when it comes to enforcing securities laws or setting capital requirements for banks. At least some forthcoming UK financial regulatory decisions may be aimed at keeping or attracting financial institutions in London, but they are still not likely to offset the loss of passport to the EU single market.

    All these permutations suggest that the medium-term outlook for the City of London is unpromising, although the COVID-19 situation makes all quantitative observations more difficult to interpret. Once an onshore financial center for the entire EU single market, and a competitive offshore center for the rest of the world, the City has been reduced to an onshore center for the United Kingdom only and has become offshore for the European Union. That implies a different, in all likelihood less powerful, set of synergies across the City of London’s financial activities.

    The few relevant quantitative data points available reinforce this bleak view. Job offerings in British finance, as tracked by consultancy Morgan McKinley, have declined alarmingly since the 2016 Brexit referendum. The ECB (as bank supervisor) and national securities regulators coordinated by the European Securities and Markets Authority are tightening requirements for key personnel to reside mainly on EU territory rather than in the United Kingdom.

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    As noted by Financial Times columnist Simon Kuper, many financial firms’ Brexit policy until this year had been to “sit tight and do nothing until post-Brexit arrangements for finance forced [their] hand.” That phase has ended. Firms that drag their feet face regulatory disruption, as happened to broker TP ICAP in late January. Tussles between regulators and regulated entities, rather than between the European Commission and the UK government, are where most of the financial-sector Brexit action is likely to be in 2021. These disputes typically happen behind closed doors, and the regulators typically hold most of the cards.

    For all the optimistic talk in London of “Big Bang 2.0 or whatever,” the United Kingdom’s comparative advantage as the best location for financial business in the European time zone is unlikely to recover to its pre-Brexit level. The macroeconomic losses could be moderated or offset by cheaper currency and less expensive real estate in London, making the city a more attractive place to do nonfinancial business. Even so, a gap will likely remain for the UK government, which has for years depended heavily on financial sector–related tax revenue.

    The European Union stands to gain financial activity as a consequence of Brexit. How much and where is not clear yet. As some analysts had predicted, Amsterdam, Dublin, Frankfurt, Luxembourg and Paris are the leaders for the relocation of international (non-EU) firms. Dublin and Luxembourg specialize in asset management, Frankfurt in investment banking and Amsterdam in trading. But EU success in terms of financial services competitiveness and stability will depend on further market integration, the pace of which remains hard to predict.

    The European banking union is still only half-built because it lacks a consistent framework for bank crisis management and deposit insurance. The grand EU rhetoric on “capital markets union” has yielded little actual reform since its start in 2014. Events like the still-unfolding Wirecard saga may force additional steps toward market integration, even though a proactive approach would be preferable.

    The one near certainty is that London’s position in the European financial sector will be less than it used to be.

    *[This article was originally published by Bruegel and the Peterson Institute.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Will Britain Become Scot-Free?

    Among the consequences of Boris Johnson’s greatest accomplishment, Brexit, the question looms of the possible imminent fracturing of the union of nations known as the United Kingdom. The act of shattering one union — the EU — may have launched a trend. 

    As the second most important political entity of the British union, Scotland sees its quest for independence as symmetrical with Britain’s withdrawal from Europe. The Scots have long felt as oppressed by the English as the Brexiters felt oppressed by Brussels. Moreover, Scotland has traditionally felt a strong kinship with Europe. It once took the form of the Auld Alliance, established in 1295 by France’s Philippe IV, as both nations opposed England. The idea of the alliance resurfaced in the troubled period after James II, the last of the Stuart kings of England, was forced to flee to France following the 1688 Glorious Revolution.

    More recently, following the hesitating but finally successful integration of Great Britain into the EU in 1975, Scotland reveled in its European status. In June 2016, the Brexit referendum that then-Prime Minister David Cameron agreed to hold shocked the world by producing a victory for the “leave” camp. Scotland, however, unambiguously favored remaining in the European Union by a score of 62% to 38%. Nicola Sturgeon, Scotland’s first minister, immediately saw a reason to hold a second referendum for Scottish secession from the UK, an initiative that had been attempted but failed in 2014. Today, the polls indicate a clear majority of Scots will vote for independence. This time around it will be justified by the UK’s effective withdrawal from Europe. Scotland feels a deeper loyalty and kinship to Europe than to England.

    When Will Boris Johnson Be Committed?

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    The Scots are nevertheless divided. Breaking with England would revert to a situation that hasn’t existed since 1707, the year the Treaty of Union was signed. Creating a border between Scotland and England in the 21st century will likely be more of a challenge than the knotty quandary still facing Northern Ireland concerning the unsettled question of a border that may need to be enforced with the Republic of Ireland, which is still part of the EU. The Roman Emperor Hadrian may have presciently anticipated the question of Scottish independence when he ordered the construction of his famous wall in 122 AD.

    As disappointment with Brexit increases and polling shows the Scots as likely to show the same alacrity to exit their union as the Brexiters did with regard to the European one, the minority of Scottish “remainers,” known as unionists, are beginning to worry. To understand the nature of their panic,Al Jazeera quotes one unionist, Sheena Francovich, a retiree from Argyllshire on Scotland’s west coast: “As far as I’m concerned, we had a vote [in 2014] and we voted to stay part of the UK and that’s end of story. Nobody has ever convinced me that [independence] would make any economic sense. If there was another vote and people did vote [Yes] it would be a sad, sad day.”

    Today’s Daily Devil’s Dictionary definition:

    Economic sense:

    The idea that better economic conditions will result from a choice the person speaking has already made, despite having no access to the full range of factors that determine economic success or failure.

    Contextual Note

    Brexit has been officially in place for a month and a half. One commentator highlighted the gap that has become evident between the promises Prime Minister Boris Johnson made five years ago and the reality of what is turning into a new winter of discontent: “During the 2016 Brexit campaign, proponents promised businesses that leaving Europe would mean liberation from suffocating regulations and infernal bureaucracy that supposedly prevailed across the Channel. It was all a lie. Post-Brexit, British companies that trade with the EU now deal with expensive disruptions to their businesses, and watch as their export profits plunge.”

    Embed from Getty Images

    Boris Johnson and his cohorts cannot complain that it’s all because they haven’t had enough time to prepare. The Europeans were ready to allow the UK more time, but it wasBoris who insisted that it was crucial to “get Brexit done.” The long-term consequences of Brexit, including the eventual dismantling of the United Kingdom, are unknown. But the short-term consequences have given an idea of the scope of the material and economic damage. It will take longer to assess the psychological and cultural damage. 

    This will, of course, be compounded by the incalculable effects of the COVID-19 pandemic, not just on the economy, but on the entire youth of the nation. This is occurring at a curious moment of history, marked in recent decades by the vaunted interdependence associated with the idea of globalization. The edifice has begun to shatter, with nothing stable in view to replace it. Sheena Francovich may be right to say that any nation’s independence makes no “economic sense” — but neither does dependence.

    On Sunday, for the first time, pro-independence parties have won a majority in Catalonia’s regional parliament, putting pressure on Spain to take into account a powerful centrifugal force that has been building for some time. The Catalans are already watching closely the drama unfolding in Scotland, hoping the much clearer case for Scottish independence prevails. Fragmentation as a reaction to decades of forced globalization may become a dominant trend of the 21st century.

    It doesn’t even stop there. The world has entered into a new era of uncertainty concerning the way people imagine their future. This has always been the biggest intangible factor of stability for any society. Political and cultural disarray has become the norm throughout the West and across much of the globe, including another “united” nation, the USA. The events of January 6 in Washington, DC, may portend the disunifying of the entity celebrated as “one nation, indivisible,” a scenario difficult to imagine. There are nevertheless telltale signs of serious cracks in the national narrative that, unlike the Liberty Bell in Philadelphia, famous for its crack, offer no reassurance about a tranquil future.

    Historical Note

    The UK became united only slowly and in a largely haphazard way. When Elizabeth I, the Virgin Queen, died in 1603 leaving no successor to perpetuate the Tudor line, the rules of monarchy required seeking a new king among her cousins, the Stuarts. The nearest of kin was the reigning king of Scotland, James VI, son of Mary Stuart, Mary Queen of Scots, who was martyred by her cousin Elizabeth for remaining loyal to the Catholic faith. Elizabeth’s father, Henry VIII, to seal his divorce from Catherine of Aragon, had assumed the equivalent of papal authority over the newly created Anglican Church. 

    The accession of the king of Scotland, who now became James I of England, established the Stuart family as future heirs to the throne. All did not go well. James’s son, Charles I, was dethroned and decapitated by Oliver Cromwell after a civil war in which the Roundheads (the anti-Anglican Puritans) defeated the Cavaliers (the royal army).

    When, following the restoration of the monarchy, James II, son of Charles II and grandson of James, declared his Catholic faith and, to add insult to injury, had a son with his Catholic wife, the defenders of Protestant England were upset enough to stage a coup. A bloodless revolution took place. The Protestant establishment celebrated it as the Glorious Revolution. Luckily for the revolutionaries, James II’s first daughter, Mary, had had the good sense to marry a Dutch Protestant, William of Orange, and the couple were called back from the continent to reign over England.

    Mary’s sister Anne became queen in 1702. Under her reign, the Acts of Union were ratified by the English and Scottish parliaments respectively, creating the United Kingdom of Great Britain. The 18th century witnessed the rapid expansion of the British empire. Scotland tagged along with the triumph, though sometimes grudgingly. The last attempt at securing Scotland’s independence was led by the Stuart pretender, Bonnie Prince Charlie, who had returned to Scotland from France via Ireland. The Scots and their allies were defeated ingloriously at the 40-minute battle of Culloden in 1746 by the equally inglorious duke of Cumberland, known to this day as “Stinking Billy.”

    Though the Scots quickly gave up on the hope of a Stuart restoration, they have never really forgotten the humiliation of Culloden. Brexit, for many Scots, is another Culloden.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Brexit Deal Presents Opportunities for a New Partnership

    It was agreed almost at the last minute: The Trade and Cooperation Agreement (TCA) between the European Union and the United Kingdom, signed on December 30, 2020, prevented a no-deal Brexit just one day before the end of the transition period. Four and a half years after the referendum, relations between the EU and its former member state have thus been put on a new footing. It is a considerable achievement of the negotiators on both sides that such a complex agreement was reached despite the adverse conditions.

    Yet the end result, due to the British quest for sovereignty, is a (very) hard Brexit. Although the movement of goods will continue with zero tariffs and zero quantitative restrictions, many new non-tariff trade barriers will arise when compared to single market membership. Services, including finance, are largely excluded from the treaty, and with very few exceptions, the British are leaving European projects such as Erasmus. London has also excluded foreign and security policy altogether from the institutional cooperation with the EU.

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    Despite the restricted market access, the EU can claim to have achieved the inclusion of comprehensive instruments to ensure fair competition, a level playing field. This includes the possibility of reintroducing tariffs and other trade restrictions should there be a significant divergence in labor or environmental standards in the future. Both sides have achieved their remarkably defensive goals: Boris Johnson gets his hard Brexit, and the EU was able to defend its single market and its standards.

    To Be Built Upon

    The original idea of an “ambitious and deep partnership” between the EU and the UK, however, has fallen by the wayside. In the first few weeks of 2021, the EU and the UK have already squabbled over vaccines and the status of the EU ambassador in London. Nevertheless, if used wisely, the agreement could represent the low point in British-European relations, from which a new partnership emerges after the difficult Brexit negotiations. However, there are five reasons the TCA could enable an improvement in relations.

    First, the trade deal does not mark the end of negotiations between London and Brussels. The agreement itself provides for a review after five years — that is, just under six months after the likely date of the next UK general election — in the course of which relations can also be deepened again. There is also a review clause for the Northern Ireland Protocol in 2024, transition periods for energy cooperation and fisheries, and further talks on data exchange and financial market services in 2021. Similar to Switzerland, there will be almost constant negotiations between the EU and the UK, albeit at a less politically dramatic level than recently. It is precisely this de-dramatization of relations that offers an opportunity to restore trust and improve cooperation.

    Second, the agreement is designed to be built upon. It establishes institutionalized cooperation between London and Brussels with an EU-UK Partnership Council and a number of specialized committees, for example on trade in goods, energy cooperation and British participation in EU programs. It is explicitly designed as an umbrella agreement into whose overall institutional framework further supplementary agreements can be inserted.

    Continued Interdependence

    Third, economic relations will remain important for both sides despite new trade restrictions. The geographical proximity, the close integration of supply and production chains in many economic sectors, and the mutual importance in trade will ensure continued economic interdependence. The EU remains by far the largest export market for the UK, which, in turn, as the second biggest economy in Europe, will also continue to be a major economic partner (and competitor) for the union. Added to this are the level playing field provisions of the TCA, with both partners committing to maintaining existing EU standards as far as they affect trade and investments, and incentives have been created to keep pace with new standards.

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    Fourth, the willingness of both sides to make compromises to avoid a no-deal Brexit paradoxically also clearly revealed the common interests despite the difficult divorce. For example, the TCA declares climate policy to be a shared interest, in which the UK will play a central role in 2021 by hosting the next climate summit together with Italy. Opportunities will also present themselves here for trilateral cooperation with the new US administration. The continued participation of the British in a small number of EU programs, such as the EU’s Copernicus Earth observation program and parts of the data exchange in home affairs and justice policy, is also stronger than expected.

    Fifth, with the combination of the Withdrawal Agreement and the TCA, Northern Ireland has become a shared responsibility of the UK and the EU. In order to keep the border open with the EU member state of the Republic of Ireland, the rules of the EU single market will continue to apply in Northern Ireland, whereas a trade border has been created in the Irish Sea between Northern Ireland and the rest of the UK. Any deviation from EU standards will now require the UK government to weigh not only whether this breaks the level playing field rules — thus allowing the EU to erect trade barriers — but also whether new intra-UK trade barriers with Northern Ireland are created.

    The EU equally has a responsibility in the interests of its member state Ireland to work with the British government to ensure that these complex arrangements work as smoothly as possible so as not to jeopardize peace in Northern Ireland.

    The trade treaty, which came into being under great pressure, both temporal and political, thus achieves one thing above all — the creation of a foundation on which British-European relationship can be reconstructed. Hard Brexit is now a fact, and the step from EU membership to a third country with a trade agreement has been completed. But negotiations are from over: As neighbors, the EU and the UK will continue to negotiate and renegotiate their relationship in the foreseeable future. It is now up to the political leadership on both sides to determine how this foundation is used. The EU and Germany should be open to building on this foundation with options for deepening cooperation in areas where there were gaps left behind by the TCA due to time or political circumstances.

    *[This article was originally published by the German Institute for International and Security Affairs (SWP), which advises the German government and Bundestag on all questions related to foreign and security policy.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    When Will Boris Johnson Be Committed?

    The UK has finally cast off all its shackles and is ready to assert its freedom under the creative leadership of Boris Johnson, the man who made Brexit happen. Things are a little complicated for the moment, but once COVID-19 can be tamed, British creativity will find its cruising speed.

    Brexit has been official only since January 1, 2021. It’s far too soon to expect any concrete results. Creative leadership needs a little bit of time to get going. Faced with a challenge, Britain’s creative managers will do the first thing all creative managers do, especially those with a sense of how the law works. They will search for loopholes and storm their way through them. Rest assured, Johnson’s government is already hard at work.

    One example is the “working time directive,” an initiative, as reported by the Financial Times, that will rescind the 48-hour workweek limitation imposed by European law. This new directive is part of a promised “post-Brexit overhaul of UK labour markets.” This reform in the name of improved productivity theoretically violates the last-minute agreement signed a month ago with the EU but, apparently, there’s a loophole. The EU will have the right to protest only if it can “demonstrate the changes had a material impact on competition.” Let them try. That will keep the bureaucrats busy and it will take years to begin to make the case.

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    The government claims this measure will help both businesses and workers in the UK, but Ed Miliband, Labour’s shadow business secretary, begs to differ: “In the midst of the worst economic crisis in three centuries, ministers are preparing to tear up their promises to the British people and taking a sledgehammer to workers’ rights.”

    Another example concerns the post-colonial habit of wealthy nations that have for decades been shipping their plastic waste to poor countries. Karen McVeigh in an article for The Guardian, “’Loophole’ will let UK continue to ship plastic waste to poorer countries,” describes how the post-Brexit UK is “failing to honour its promise to curb shipments of plastic waste to developing countries.” This is all the more astonishing as Johnson’s Conservative Party, in a brave attempt to prove its ecological credentials, had taken a firm position condemning the practice. McVeigh writes: “Britain will continue to allow plastic waste to be exported to developing countries, despite a Tory party manifesto commitment to banning the practice, and promises of no regression of environmental standards post-Brexit.”

    Today’s Daily Devil’s Dictionary definition:

    Commitment:

    A solemn promise intended to be kept unless it turns out to be costly or inconvenient.

    Contextual Note

    The point of a party’s manifesto has never been to define an ambitious legislative program that it intends to pass, but rather to give an idea of how its members imagine a utopian society might look. That’s what interests voters during an election campaign. It proves that the party has what can be called “a vision,” which has become a standard political commodity that can be fabricated practically instantly by experienced spin doctors.

    The European Union had already taken an initiative on the question of plastic waste. The Tories vociferously claimed to agree with it and announced their commitment to implementing it. The European law became applicable at the beginning of this year. It requires the banning of “all non-recyclable plastic waste being shipped to developing nations from 1 January.” 

    One of the reasons both the Europeans and the British Tories found this so convincing is that, apart from the catastrophic effects on the environment of the countries to which the waste is shipped, much of the plastic ends up polluting the oceans and seas of the world, including those that surround the isle of Britain. Now that the UK is nothing but an island, there is a selfish reason for the reform. But, as the world should now realize, selfish environmental reasons rarely trump selfish monetary reasons.

    The government’s lawyers have taken a lesson from the recent legal history around the issue of sexual assault. They have drafted a condition that makes everything acceptable, so long as it is consensual. It even has a name: “prior informed consent.” In other words, the UK is committed to respecting the idea that “no means no.” McVeigh offers the details: “UK exports will now be made under a new system of ‘prior informed consent’, under which the importer has to agree to accept the waste, and has the opportunity to refuse it.”

    Historical Note

    The FT article quotes a government spokesperson, who clearly believes in Britain’s future vocation as an innovator that may serve as a model for others. It may fall short of a return to empire, but some people still remember the cultural leadership of the UK in the 1960s and 1970s. That was when the UK offered the world The Beatles, The Rolling Stones, Carnaby Street, Monty Python, the Skinheads and punk rock. As per the British government, “Leaving the EU allows us to continue to be a standard-setter and protect and enhance UK workers’ rights.” 

    As they have done for the past four years, the Johnsonite Tories see this as a turning point not only in the history of the British Isles, but a major event in world history. European standards were unbearably bureaucratic and led to sclerosis. The new deregulated standards of the UK are flexible and innovative, the stuff of a shining future.

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    Some may feel that this sounds like an appeal to the past, to the Thatcher years. That would be understandable coming from Margaret Thatcher’s party. But in terms of its capacity to produce plastic waste, the UK has no need to return to the glories of the past. It is already a leader. “Britain is one of the biggest producers of plastic waste in the world, second only to the US.” With 67 million inhabitants, the UK represents a little more than one-fifth of the population of the United States. Holding second place in such a competitive world is quite an accomplishment.

    The article lists some of the countries to whom Britain exports its waste: Malaysia, Pakistan, Vietnam, Indonesia and Turkey. Finding a way to take advantage of poor countries is baked into British imperial culture. A Greenpeace political campaigner complained that “creating a loophole to allow the dumping of our plastic trash on environments and communities bodes very badly. This is not leadership, it’s failing to do the bare minimum.” What Greenpeace fails to appreciate is that, like limits on working hours, this measure is meant to make British businesses more competitive. Reducing the amount of plastic sold to consumers might hurt sales and profit margins.

    The government makes the case that this is nothing more than a big misunderstanding. A spokesperson for the Department for Environment, Food and Rural Affairs confirmed the government pledge “to ban the export of all plastic waste to non-OECD countries.” Promises are for the future, not the present. After all, there was no precise timetable on the pledge. Instead, the department confirmed that “it had commissioned research to better understand existing UK plastic waste recycling capacity and would consult in due course on how to deliver its manifesto commitments.” Research by bureaucracy takes time. That was one of the main reasons Boris Johnson wanted to leave the European Union. Its bureaucracy made it difficult to expedite important business.

    The problem Karen McVeigh cites is, therefore, clearly exaggerated. Even though Europe managed to get the law in place for the first day of this year, the much more efficient decision-making of a liberated, unbureaucratic Britain will only need several more months, years or, who knows, decades. After all, research is complicated and expensive, especially when you’re on your own and have to rely on your limited resources.

    What the UK government wants us to understand is that the commitment is there. That should be enough. It will remain there with the same firm intention to carry it out until the date that the policy can be put into effect, whenever that may be, if, of course, no other unexpected event prevents that from occurring. In which case it will be reconsidered, more research will be conducted and subsequently a new commitment for future action will be announced.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More