Brexit

Rewind a few months, and it was all meant to be very different. With Covid-19 rampant across the world, the European Union would take charge of sourcing vaccines from the major drugs companies. Its massive buying and regulatory power, coupled with its finely-tuned administrative machine, would make sure its 440 million people were protected from the virus before anyone else. It would be a magnificent demonstration of the whole point of the organisation. The trouble is, not only has the project already started to come off the rails, it is getting worse with every day that passes. Europe’s vaccine alliance is crumbling with potentially far-reaching consequences. Europe’s vaccine alliance is crumbling with potentially far-reaching consequences.

Every party keeps on file a list of rash things politicians in other parties have said that can be used against them at a later date. Way back when I was directing Ukip’s 2014 European parliamentary campaign, I built up a ‘helpful contributions’ folder containing print-outs of gaffes and embarrassing admissions made by pro-EU MPs and MEPs. Conservative Campaign Headquarters probably has at its disposal a far more sophisticated and comprehensive digital system for logging the own-goals of its adversaries. But one thing is certain, someone will imminently be inputting an entry marked something like ‘Duffield, R. – Labour’s plan to re-join the EU’.

The banks would all flee. International investors would take fright. And the pound would turn into the Great British peso. We heard a lot over the last four years about how leaving the European Union would be catastrophic for the UK economy. But here is something odd. With the transitional arrangement coming to an end with the close of the old year, and with the UK now out of the Single Market and the Customs Union, and with just a loose trade arrangement with the rest of the continent that doesn’t even cover financial services, so far the FTSE is loving Brexit. True, it is only the first week of trading, and even that is not over yet, but so far the benchmark FTSE-100 index has risen from 6,500 on Monday to 6,850 on Thursday.

On New Year’s Eve at 11 p.m., the United Kingdom departed both the single market and the customs union, making the end to the country’s former membership of the EU complete. It was a moment to celebrate for Brexiteers; the commemoration of sadness for some Remainers. Or should I say 'Rejoiners' — there is no remaining now, Great Britain having departed the European Union. Many Rejoiners have set out their stalls already. ‘When they tell you to "move on" DO move on — to the long, strong, campaign to rejoin,’ tweeted Simon Schama, the historian and noted fan of the UK’s membership of the EU, ‘However hard the road, however long it takes; it starts now.

Part of the soap opera appeal of politics comes from the idea that it is a competitive sport based on fine margins – with a result that will be determined by the relative performances of the teams and their captains. Under the British first-past-the-post system two major parties slug it out in an epic tussle across hundreds of seats and then one of them wins. Sometimes things are so closely fought that neither party has an outright majority, in which case one or more of the minor parties gets to choose which should be propped up. From this point of view, every policy shift or zinger soundbite thrown by Boris Johnson or Keir Starmer changes the odds as to which of them will occupy 10 Downing Street after the next election.

During the debate over Boris Johnson's Brexit agreement in the House of Commons today, Theresa May chastised the Labour leader over his criticism of both her deal and the current deal.  Appearing to be the only MP in the chamber wearing a mask while waiting to speak, the former Prime Minister heard Starmer wish for a better Brexit agreement, while accepting that he will whip his MPs to vote for Boris’s ‘thin deal’. These words stirred something within May as she thought back to the numerous painful meaningful Brexit votes under her watch. Back then, Starmer was shadow Brexit secretary and played a key role in moving the official Labour position to backing a second referendum rather than May's deal.

As political journeys go, it’s akin to Jeremy Corbyn quitting his allotment to grow marrows on an Israeli settlement. Nicola Sturgeon, a lifelong pro-European since June 24, 2016, has decreed that the SNP will vote against the free trade pact agreed by the UK and the EU. This is quite the turnaround. Sturgeon has previously said ‘a no-deal Brexit is a catastrophic idea’, warned of ‘the dire economic consequences of a no-deal Brexit’, described ‘the nightmare scenario of a no-deal Brexit’ and urged the UK Government ‘not to countenance in any way a no-deal Brexit’.

Should we be worried that the UK didn’t get all that it wanted for financial services in the UK-EU Trade deal, as the PM mentioned to the Sunday Telegraph? Financial services are our biggest export industry by some margin, including to the EU, as well as (arguably) our biggest taxpayer, so anything that hampers it could have serious economic repercussions. The EU for its part has said that it will consider in its own time if it will grant ‘equivalence’ to UK financial services, making it easier for UK based institutions to serve customers in the EU, and will only do so if it is in the EU’s interest. The Chancellor, Rishi Sunak, has already unilaterally granted EU equivalence status, providing continuity for EU financial services companies operating here.