Friday, 15 March 2019

Not the beginning of the end but the end of the beginning


It is fair to say that after another tumultuous week in Brexit-land, we have only succeeded in ending up where we originally expected. The Withdrawal Agreement was heavily rejected on Tuesday for a second time; MPs indicated on Wednesday that they did not wish to leave the EU without a deal in place and parliament yesterday instructed the prime minister to request a three month delay to the Article 50 deadline. It is no exaggeration to say that the eyes of the world were on Westminster and not necessarily for positive reasons.

But we are by no means out of the woods. It has been clear for a while that the UK’s best option was to seek an extension of the Article 50 deadline but having got to that point I am less sure about what happens next. The UK now has to formally request an extension and it is by no means certain that it will get what it wants. Until recently, my assumption was that the EU would grant three months as a matter of course merely to prevent the worst case outcomes from impacting on the EU economy. But the mood music across the continent appears to have changed.

What will happen if the Withdrawal Agreement is resurrected for a third time?

The Commission’s view is that the UK must be able to show “a credible justification for a possible extension and its duration.” The UK thus plans to seek an extension for the purpose of implementing the necessary domestic legislation, which it cannot now do before 29 March because it has wasted so much time in trying to pass the Withdrawal Agreement. But as it currently stands the UK has not decided the terms on which it wishes to leave the EU, so it is hard to argue that it is in a position to implement any legislation. Therefore, it now seems likely that the UK will drag the corpse of the twice-rejected Withdrawal Agreement before parliament once again in a bid to give Theresa May a little bit of cover when she makes her case to EU leaders next week.

This is a very risky strategy. If parliament does ratify the deal, there is a very high likelihood that the EU27 will agree to Theresa May’s request. But if it does not it is a whole different ball game. So what are the chances that dissenting MPs will swallow their pride and vote it through? There appears to be a dawning realisation amongst the Brexit-ultras that the EU is in no mood for reopening negotiations and that if they reject the Withdrawal Agreement yet again, they may well reduce their chances of getting any Brexit at all. The DUP also appear to be biddable. Much appears to depend on whether the rebels buy the latest arguments from the Attorney General that the UK could unilaterally break away from the Irish backstop under the terms of the Vienna convention.

In simple terms, Article 62 of the Vienna convention says that if there has been "a fundamental change of circumstances" following the conclusion of a treaty "which was not foreseen by the parties", then the countries involved would be allowed to withdraw from the treaty. But since the current arrangement says that the backstop will come into place if no solution to the Irish border can be found, it is hard to argue that it would be unforeseen. Moreover, since the Attorney General argued only on Tuesday that there continue to be no grounds for the UK to unilaterally exit the backstop, and since nothing has changed in the interim, this does rather sound like a desperate ploy. But since rationality has very little to do with the Brexit debate, it might just be enough to convince those who want to be convinced, and thus enable the Withdrawal Agreement to be ratified.

And what if it is rejected?

But if it is rejected once again, MPs will have sent the prime minister “naked into the conference chamber” (to quote Nye Bevan). She will not have any cards left to play and the EU will be in a position to call the shots. Do not be surprised under those circumstances if the EU offers a much longer extension (e.g. until the end of 2020) with conditions attached that the prime minister is unable to accept (e.g. participation in the European elections). You can imagine what the Conservative Party reaction would be to such a proposal. Remember that almost one-third of MPs yesterday voted against an extension of Article 50 (i.e. for a hard Brexit), and of those who did support the extension many will have held their nose in voting for a short postponement. They are far less likely to accept one which runs (say) to end-2021.

This will put MPs in the position of having to choose between a no-deal Brexit and a long delay. But there is always a chance that Theresa May could put the Withdrawal Agreement up for a fourth attempt. Incidentally, if the margin of defeat follows an arithmetic progression, the sequence runs 230 (January), 149 (Tuesday), 68 (next week), -13 (fourth attempt). So it could pass on the fourth attempt after all. I thus do not buy the view that if the EU turns down May’s proposal next week that a hard Brexit will emerge by default.

A whole new dimension of Brexit issues

But we should not overlook the fact that the Brexit debate is about to enter a new dimension. In the short-term, the UK is about to throw itself on the mercy of the EU. But EU politicians, as opposed to the Council and Commission, are likely to take a much harder line on an extension. Attitudes are hardening amongst EU governments which fear that Brexit could be a distraction in their fight against populist politics in their own countries during the election campaign. There are also concerns that if the UK were to extend its EU membership beyond mid-year, but refuse to take part in parliamentary elections in May, the legitimacy of the parliament would be called into question which would give ammunition to the many populists across the continent. Make no mistake, the EU is rapidly running out of patience.

Even if the UK does ratify the Withdrawal Agreement and leaves the EU by mid-year, thus entering the transition period that runs to end-2020, a whole new set of problems will emerge. The UK will have to negotiate what sort of future relationship it wants with the EU. The shenanigans over the course of recent months, with those responsible for negotiating with the EU voting against the agreements they reached when they returned home[1], is not exactly going to fill the EU with confidence that the UK is a trustworthy partner.

It is also a fair bet that Theresa May will resign if she can negotiate the UK’s exit by mid-year. After all, why put herself through the stress of dealing with her divided and unthankful party? It will be left to another prime minister to deal with the longer-term arrangements, which could change the complexion of negotiations, but it is unlikely they will be any more successful than Theresa May in squaring the circle of domestic and international requirements. The initial stage of leaving the EU will not, in the words of Winston Churchill, be the beginning of the end but merely the end of the beginning.


[1] The classic example is former Brexit Secretary Dominic Raab who was responsible for negotiating the Withdrawal Agreement between the UK and EU but who has twice voted against it in parliament. His successor Stephen Barclay this week made the case for  extending the Article 50 deadline beyond March and then voted against it.

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