Saturday, 22 July 2017

THE TRANSITION

The BBC are now reporting (HERE) that the cabinet is united in wanting a transitional period after March 2019. Some ministers like Gove, Davis and Fox are rather late converts I believe having resisted any talk of transition until now but these reports don't seem to understand the context to this change of tack. But I think it tells us (and the EU) quite a lot.

Firstly, the cabinet seems finally to understand the catastrophe that a cliff edge would create for British industry but it also exposes the weakness of our position. A transitional period is not in our gift. So much for taking back control or, as Michael Gove said before the referendum, we now having all the cards in our hands. We don't. In fact we have none. After Article 50 was invoked the EU have them all and must agree unanimously to allow a transitional period. No doubt there will be a price to pay.

Ministers like this one (HERE) suggest we should have access to EU workers during the transitional period as if it is the UK making the demands and the EU accepting whatever we put forward and even more, that EU workers still want to come to a country where xenophobia and overt racism is on the rise. If the economy continues to cool there may be no demand for workers anyway. The Chancellor knows this better than anyone (HERE).

Secondly, it is good news for we remainers. Brexit is lunacy, of that there is no doubt. It is not rational to isolate yourself in a globally connected world or make yourself poorer, weaker and less secure. One day Brexit will be reversed and the UK will become a permanent member of the EU. The longer people have to see the damage wreaked by Brexit on the economy the better it is for us. If the transition period is three years, during which we continue to accept EU rules, pay into the budget and accept freedom of movement, we will have five years in total to demonstrate the disaster that is Brexit. If we cannot do it in that period something is wrong with our arguments.

Brexiteers will be facing known facts rather than peddling myth. Turkey will not be joining the EU, our economy will slow down relative to Europe. The public finances will become weaker and public services will deteriorate. The NHS will not get £350 million a week extra.

The transition is to our advantage. We must use it.