Theresa May: Out of the Frying Pan and Into 2019

Well Brexit fans, that was a year, wasn’t it?

Everything that could’ve happened, did happen — except for a 2nd EU referendum which (speaking hypothetically) if the Leave side won, might’ve put a stop to the complaining of Remainers who still can’t reconcile the fact that they lost the referendum 2 1/2 years ago. It’s time to move on, folks!

But what if Remain had won a 2nd referendum on EU membership, you ask? It would’ve turned it into a best-out-of-three affair that would’ve required another costly and divisive referendum to settle.

If the UK had unlimited funding and unlimited time — a best-out-of-three referendum scenario would’ve worked out nicely, wouldn’t it?

Just for the record, Brexit would’ve won it two-in-a-row, thereby preventing the need for any third EU referendum and Remainers (I’m sure!) would’ve thanked Brexiteers for saving taxpayers even more millions for a third EU referendum. Because for Brexiteers it’s all about saving UK taxpayer money. You’re welcome! Just another Brexit dividend.

Fortunately, as time is short, there’s no time for another referendum to ensure ‘The People’ voted the ‘right way’ and only the usual malcontents are holding placards and yelling at cars, because, well, they didn’t get their way!

That old democracy thing really sorts them out, doesn’t it? (“Why can’t I just get my way every time?” “Because, democracy.”)


Only 90 Days Until Brexit

Although UK Prime Minister Theresa May tried mightily she wasn’t able to get a draft Withdrawal Agreement passed in the House of Commons that would’ve allowed the UK and the EU an easier transition through Brexit and (bonus for the EU!) a £39 billion, one-time payment.

However, the EU is well-known for its last-minute 11th-hour deals, and nobody should expect the draft Withdrawal Agreement to be modified enough to pass in the UK House of Commons and be approved by each EU27 country until at least March 15th. That’s just the way they do things there. Hey, they’re allowed to use whatever negotiating ploys they want, as is the UK. All’s fair in love and divorce, they say.

In the meantime, Theresa May has but one option: Prepare for a ‘No Deal’ Brexit with as much enthusiasm as she can muster, getting all of her departments moving in the right direction, and she must continue with the non-Brexit business of running the country — until the 11th-hour people want to talk again.

And they already know what they must do in order to gain a deal that will pass on both sides of the English Channel: It’s as simple as removing the Irish backstop, or putting a firm end-date on UK Customs Union membership. Either of those choices are fine.

And once that happens the UK House of Commons will pass the amended draft Withdrawal Bill with plenty of bipartisan support as party politics must step aside for the good of the country at such historical moments, and it’s likely the EU27 parliaments will pass it as well.

For EU countries, there’s not only continuing access to UK markets to think about, there’s that £39 billion one-time payment to gain or lose. And if they miss it they’ll have only themselves to blame because all it takes to obtain that £39 billion payment is a signed Withdrawal Agreement — and that means signed by both sides — the UK and each of the EU27 countries.


Steady-On, Theresa, Until the EU Get Serious About an Implementation Period + Withdrawal Agreement

According to the terms of Article 50, Brexit will occur on March 29, 2019 and it’s the default option — no matter what else happens or doesn’t happen in the meantime. If the Withdrawal Agreement never gets signed, Brexit will still occur. Let’s make no mistake.

However, Theresa May has no power to force the EU negotiators to the table in order to arrive at a mutually beneficial Brexit agreement. If they want a deal, they’ll show up prior to March 29, 2019.

But if they don’t, the UK gets to keep the £39 billion and spend it on the NHS and other important parts of the UK economy and the UK will be completely (and mercifully) out of the European Union governance architecture. Which might involve a little ‘short term pain for long-term gain’ for both sides.

Yet it’s coming out a little more each day that a ‘No Deal’ Brexit scenario isn’t as scary as Project Fear has made it out to be. Let’s try to forget how wrong they were over the past 2 1/2 years. Nobody is listening to their ‘sky is falling’ toxic talk any more.

Almost every economic indicator in the UK is on the uptick since the EU referendum and a lower pound sterling works to make UK exports affordable overseas. Which is a very good thing for British manufacturing — a sector that has fallen to less than 10% of UK GDP since the 1970’s when it contributed 25% to UK GDP.

One of the best things about Brexit is that the UK will again forge its own trade relationships with the rest of the world instead of being tied to the EU economy which has fallen from 25% of global GDP in 1993 to 11% of global GDP in 2016, and is projected to fall further to 9% of global GDP by 2020.

While we should wish the EU27 well, it’ll be a breath of fresh air for British exporters to finally leave the bloc. Yet, let’s hope the UK can leave the EU on good terms, with a decent Withdrawal Agreement that’s acceptable to all 28 nations, and with a CETA-style trade agreement.

Anything less than that minimum level of success would be a case of leaders on both sides of the English Channel shooting themselves in the foot.

Written by John Brian Shannon


NO MATTER WHICH SIDE OF BREXIT YOU’RE ON: HAPPY NEW YEAR!

As Brexit Negotiations Lag: Are Europeans Missing Opportunities as Big as the Sky?

Only 221 days to go until the official Brexit date of March 29, 2019, and only microscopic progress has been made on crafting a ‘Win-Win’ divorce deal.

Such is the state of affairs that exists (1) within the UK, (2) within the EU, and (3) between the two countries. It is to weep.

But whether the United Kingdom or the European Union are ready for Brexit or not, the Brexit baby will be born — therefore, it’s imperative that both sides stop posturing and get on with creating a deal that works for citizens and industry on both sides of the English Channel.


What Else Is There Besides Brexit?

Although it may be difficult for Europeans to see, there are bigger issues in the world than Brexit which is why a deal needs to get done properly and quickly as there are other, more pressing, and more important matters for European politicians to attend to.

If we liken the geopolitical world to an auto race (a Formula One race) while all the other teams are busy prepping for the race and getting to their startup positions, the UK and the EU have found a muddy part of the infield and are playing ‘bumper cars’ with each other like a couple of overly-exuberant teenagers — getting mud all over their sponsor’s brand names and on their respective drivers’ goggles, they’re damaging the tires and composite body of their race cars, and they’re burning up precious fuel reserved for racing against the ‘big boy teams’ of America, China, Japan, India, Brazil and others.

Either the UK and the EU governments already have a deal and just haven’t announced it to the public, or they don’t realize that other more important geopolitical matters will soon bypass the ‘tempest in a teapot’ happening in Europe.

New and important things sometimes start small. Don’t believe it?

The first streetlights were installed in Cleveland, Ohio in 1879 when electric lights (Brush arc lamps) were placed along major roadways. Thomas Edison (who spent most of his day napping in his workshop only to become extremely productive afterward) was a person who toiled away for years inventing and designing a reliable light bulb, manufacturing one bulb at a time. Yet, the lighting industry in its entirety is a multi-trillion dollar business in our day.

George Eastman, right under everyone’s noses created a company in 1888 (Kodak) that eventually made so much money they weren’t always able to count it. New machines had to be built (computers) to keep track of the astronomical number of transactions happening all over the world, every minute of every day. Over the decades Kodak contributed more than a trillion dollars to the global economy and made the company and its shareholders unbelievably wealthy. Kodak’s patents and knowledge are still with us today.

The Wright Brothers ultralight aircraft first flew on December 17, 1903 near Kitty Hawk, North Carolina. At that time, the two men were thought of as odd, even eccentric people with fantastical ideas wasting precious days that could’ve been better spent. Yet, look at what their great invention has created — a multi-trillion dollar civilian airline industry and military aircraft industry.

From tiny beginnings, the first Model T automobile rolled off the assembly line on October 1, 1908 and see the changes the auto industry has brought to the world. Henry Ford is widely credited with the creation of the American middle class, something that propelled America far ahead of its competitors. Today, the world’s auto industry is also a multi-trillion dollar business, yet everyone thought old Henry was a bit of a dreamer.

King George VI united the modern Commonwealth of Nations under the banner, “Leaders agree that Commonwealth members are free and equal members of the Commonwealth of Nations, freely co-operating in the pursuit of peace, liberty and progress.” The Commonwealth now have 53 members with a total population of over 2.5 billion citizens and ranks near the United States, China, or Japan in GDP and PPP.

Steve Jobs created a company that in relatively few years became a trillion-dollar company, designing a computer operating system that was ahead of his competitors, and designed an astonishing number of world-class products, services and apps that allowed users capabilities they’d never imagined.

All of these great advances slipped completely under the radar at the time of their creation. Governments, industry, and citizens were completely oblivious as to what would follow.

The first flight at Kitty Hawk was seen as a sort of carnival ride item that made you wish you’d live long enough to see it come to your hometown, while Henry Ford famously said, “If I had asked people what they wanted, they would have said faster horses.” Yes, Henry was that far ahead of his contemporaries.

The point is, all these advances and others haven’t stopped at any time during the 20th century — technological advances are happening right now, right under our noses, just as in the time of Henry Ford — and the next Steve Jobs or Henry Ford aren’t going to stop and wait a few years for the UK and the EU to get their Brexit act together.

For all we know, the next trillion-dollar company or multi-trillion dollar industry might be deciding (this week!) where to set-up their ground-breaking operation and such entrepreneurs are likely to avoid regions of the world where economic instability appears or where regulations aren’t finalized. Dragging-out Brexit = European instability.

It’s not against the UK or the EU… it’s against both.

Both will suffer if a stabilized economy and a finalized regulatory environment are seen to be ‘aspirational’ — which is a word entrepreneurs sometimes encounter in developing nations.


Missed Opportunities?

UK and EU leaders should rethink their negotiating ‘strategy’ and factor-in the potential for losing the next start-up, disruptive technology, or multi-trillion dollar industry to a different region of the world, whenever they next meet to discuss Brexit.

Imagine if Europe would’ve ‘had it’s act together’ in previous decades… perhaps Thomas Edison, George Eastman, Orville and Wilbur Wright, Henry Ford or Steve Jobs would’ve started their businesses in Europe instead of America.

Put that in your pipe and smoke it, negotiators.

With financing and instant communications available almost everywhere, the global playing field has levelled since the 19th century, so ‘ease of doing business’ and ‘a transparent regulatory environment’ can make all the difference when today’s entrepreneurs meet to choose a location for the next trillion-dollar business.

We’ll soon know if any of this registers with British and European leaders…


Written by John Brian Shannon | Reposted from LetterToBritain.com