Membership Dues

18 January 2018

Cogito Ergo Non Serviam

 Macron Sinks Special Access for UK Finance after Brexit

Her Majesty's Government has promised that the financial sector, which makes up around 10% of the British economy, will continue to have access to the single market after the UK leaves the EU. Theresa May and the cabinet ministers have no choice but to say that. The Leave campaign promised a brighter future for Britain, but without that continued access for the City, that's in doubt. Today, French President Emmanuel Macron said point-blank that there would be no such special access unless the Brits pay for it.

"The choice is up to Britain: it's not my choice -- but they can have no differentiated access to financial services," he said. "If you want access for financial services, be my guest -- but it means you have to contribute to the budget, and accept European jurisdiction. It's a situation that exists for Norway."

He noted that the alternative would be the kind of deal that Canada has with the EU. That sort of arrangement could easily include financial services, but access would not be "on the same level" as existing EU members. That would mean a definite advantage to financial institutions in Germany and France. However, equal access would be out of the question. "There should be no hypocrisy in this respect, or it would not work and we would destroy the single market."

This goes to the heart of the EU and Brexit. Quite simply, membership in a club means one must pay one's dues. It is ridiculous to maintain that one can enjoy all the benefits of membership without paying into the club's coffers. However, the Leave crowd never really accepted that premise

In their Little Englander minds (because the Scots and Ulstermen voted to stay), it was unthinkable that Europe would be able to function without Britain. They never realized, or at least never admitted, that Europe doesn't lose anywhere near as much from Brexit as the UK does. The EU loses access to a market of 60 millions or so, Britain loses access to a market more five times as big. The consequences of Brexit were always assymetrical.

The Tory government now needs to figure out what, exactly, it wants. The Norway arrangement or a Canada-plus or Canada-lite or whatever, the government must start speaking with one voice. That has been the problem since before David Cameron ever promised a referendum. Those who wanted to stay in the EU had a clear vision of what they had and what was possible. Those who wanted out simply wanted out. They had no idea of what would come next. They still don't.

In advance of today's meeting, Britain's ambassador to Paris, Edward Llewellyn, told Radio 4 "I think this is the beginning of an opening of a new chapter between Britain and France, not the closing of a book. Both governments are committed to this relationship." But that doesn't mean closer, just different. 

His Excellency also noted, "A deal that works for Britain is likely a deal that will work for everyone." Yet that doesn't mean that a deal that doesn't work for Britain, or no deal at all, would harm everyone else as badly. Sometimes, the price of not making a deal is worth it.

 

© Copyright 2018 by The Kensington Review, Jeff Myhre, PhD, Editor. No part of this publication may be reproduced without written consent. Produced using Ubuntu Linux.

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