19 February 2020

The Federal Trust: Brexit: The British government starts to recognise reality

Michael Gove’s acknowledgement that trade between the UK and the EU after 1st January 2021 will be far from frictionless is a watershed in the Brexit process. The claim that Brexit would not significantly impinge upon British trade with the European Union was central to the 2016 Leave campaign. So central indeed that government ministers spent the three years thereafter repeating this dishonest assurance in the face of ever-mounting evidence to the contrary. [...]

The enduring denial that Brexit would involve customs and other checks at the border(s) of the EU was not merely a political and rhetorical convenience. The equivocation about the objective implications of Brexit for cross-border trade reflected a continuing disagreement among Leave voters and later within government itself about different models for quitting the EU. Campaigners for a Leave vote knew that there is not and never has been a majority within the British electorate for any specific form of Brexit. Any serious discussion during the referendum campaign of realistic alternatives to current British EU membership would have risked splintering the Leave coalition. Post-2016 government ministers have been forced to realise that any concrete form of Brexit, be it “hard” or “soft,” brought with it highly unpalatable consequences which they have been reluctant to discuss honestly with the electorate. Until now. [...]

The governmental volte-face on frontier formalities will probably need to be followed in short order by similar reversals of tack on Ireland, fisheries, financial services, digital exchanges and trading arrangements with third countries. These reversals will be intensely embarrassing to Boris Johnson’s administration, and it may well be that he concludes his short-term political interest is better served by abandoning negotiation with the EU and simply proclaiming that after the transition period ends the UK will trade with the EU on “WTO terms.” No informed commentator is in any doubt that this will cause considerable damage and disruption to the British economy. It will also exacerbate political tensions within the United Kingdom, heightening discontent in Northern Ireland and Scotland. Such political and economic dislocation would be unlikely, however, to deter this hubristic government. Boris Johnson would reasonably hope to be able to count on support from important sections of the traditional mass media to justify his recklessness in pursuing a new “no deal Brexit” as an unavoidable response to the “intransigence” of the EU. Over the past three and a half years, these Eurosceptic media have had much practice in depicting as unreasonable the EU’s wholly understandable reluctance to accommodate the ever-varying demands from London that are, in truth, inimical to the EU’s interests.

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