Friday, 17 November 2017

DAVIS FAILS IN BERLIN

David Davis, in a speech to business leaders in Berlin last night is reported (HERE) as saying after Brexit Britain should "become a third country like no other", effectively making a pitch as usual for something the EU have already ruled out. He wants the freedom to become a third country but with most if not all the benefits of a first country. This can never happen. He also appealed to them not to "put politics above prosperity".

To teach the Germans about irony, he apparently said,

In the face of those facts [the many economic ties he had just listed] I know that no one would allow short term interests to risk those hard-earned gains. Because putting politics above prosperity is never a smart choice.”

Apart from it sounding like a threat, this was from a Secretary of State representing a nation that recently voted to impoverish itself for entirely political reasons and a member of that nation's government whose considered policy is to take a wrecking ball to prosperity by pulling out of the internal market and the customs union - again for politics and only for politics. There must have been a lot of hollow laughter in the room (see below for more on this).

He also insisted that the decision to leave the single market and customs union was not an “ideological” one and that the UK had decided to quit the economic bloc out of respect for the indivisibility of the EU’s four freedoms. It clearly was ideological. This is the definition of it and it fits Brexit to a tee.

Ideological. based on or relating to a system of ideas and ideals, especially concerning economic or political theory and policy. 

He also challenged people who think we've become a different country:

"I have to disagree. We are the same country we have always been, with the same values and same principles we have always had: a country upon which our partners can rely".

Even the British don't believe that. I've lost count of the number of times I've heard people ask what's happening to us. We have become less tolerant, more xenophobic even racist. He told the audience that we are:

“The sixth largest economy in the world, and a beacon for free trade across the globe; and when it comes to trade – as we forge a new path for Britain outside the European Union – I believe we can be its boldest advocate.”

Before Brexit we were the fifth largest economy! And to emphasise how he wants to go cherry picking in the future he said:

"We will be a third country partner like no other. Much closer than Canada, much bigger than Norway, and uniquely integrated on everything from energy networks to services. The key pillar of this will be a deep and comprehensive free trade agreement – the scope of which should be beyond any the EU has agreed before. One that allows for a close economic partnership while holding the UK’s rights and obligations in a new and different balance".

Davis, still in cloud cuckoo land, thinks not only are the EU prepared to offer us such a deal (they are not) but that it can be agreed in about a year (it can't). CETA took seven years and he wants one that goes beyond that but takes about one seventh of the time. As for holding our rights and obligations in a different balance - well I think this is a euphemism for cherry picking the rights and leaving the obligations behind. It's a total delusion.

Before the speech The Telegraph reported (HERE) Hans-Olaf Henkel, the former head of the Federation of German Industries (BDI), saying he expected "unconditional surrender" from Davis. If so he didn't get it. The sense of frustration in the EU is almost palpable.

What impact has the speech had?  According to The Telegraph this morning (HERE) his speech and responses under questioning was said to have been met with "derision and disbelief. Heads of multi-billion pound companies shook their heads and muttered angrily as Mr Davis fumbled for answers under questioning".

“This old man is destroying Britain’s future,” Jürgen Müller, CEO of SIG, a leading German outsourcing company, said.

“He is being a British gentleman, lying with style,” said another businessman.

"But he began to lose the audience when he came under questioning. 'If you are so committed to our common values, our common interests, our common approach, then why are you leaving the European Union?' Wolfgang Krach, the moderator, asked. The question got the biggest applause of the night".

So, that didn't go down well did it?