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Theresa the Brilliant, or Theresa the Appeaser?
It’s starting to heat up in Brexit-land after 17 months of jockeying for position, and this month more than any month since June 2016 might indicate whether UK Prime Minister Theresa May’s critics are right or wrong.
Will Theresa May travel confidently to the European Union this week to explain what she expects to receive in exchange for offering a £40 billion divorce payment? Or will she arrive and meekly accept whatever crumbs fall from the EU master’s table?
The result will determine what Prime Minister Theresa May will be called for the rest of her political life — she’ll either be known as ‘Theresa the Brilliant’ or ‘Theresa the Appeaser’ — or worse variations of those two titles.
Why Would the UK Choose to Offer £40 billion to the EU?
Certainly, the UK has pension and other legitimate obligations to the European Union that must be covered in the post-Brexit timeframe, no one is disputing that.
Also important to this discussion is that the UK has been and remains the second-largest contributor to the EU budget and is thereby part owner with the European Union of many shared buildings and properties — like the EU Parliament building in Brussels, for instance. (Total UK equity in the EC/EEC/EU institutions and real estate could be as high as £9.65 billion, although it’s difficult to find agreement on the amount)
So the question becomes; What’s the UK paying for, when it offers apropos of nothing, £40 billion?
Clearly, it isn’t to cover the legitimate obligations of the UK post-Brexit which amount to £6.15 billion, nor does it factor-in the UK’s share of the EU’s institutional equity — some £9.65 billion worth of land, buildings, and other holdings.
Indeed, Germany (#1) and the UK (#2) have paid the largest share of the EC/EEC/EU’s operating budget since 1972, and in recent years the UK’s annual net payment to the EU has hovered around £8 billion.
British Taxpayers: “If £40 Billion Isn’t Enough, Then It’s a WTO Brexit, Prime Minister”
Therefore it would seem that the £40 billion offer to the EU isn’t to pay future obligations, but that PM Theresa May has decided to pay in advance for (a) a bespoke free trade agreement with the European Union, (b) a bespoke Northern Ireland border agreement, and (c) to clear every single miscellaneous issue so that Brexit can proceed quickly.
And if that’s the Prime Minister’s thinking, it seems sound logic although it could be seen by some pundits as an expensive way to go.
Q: “Could I Have a Nice and Clean Brexit?”
A: “That Will be £40 Billion, Please.”
If Prime Minister May gets a nice clean Brexit, the UK can then sign free trade agreements with most of the countries and trading blocs in the world, in addition to maintaining a healthy trading relationship with the European Union which accounts for 15% of all global trade.
In addition to that, such a bespoke Brexit payment should guarantee perfect cooperation on a soft border between the Republic of Ireland and Northern Ireland.
It should guarantee that the European Court of Justice won’t comment or interfere on UK matters, and it will simply become one of many global courts that UK judges consult when making precedent-setting rulings.
And because in the whole history of the world there has never been such an unprecedented £40 billion divorce payment, Prime Minister Theresa May and every subsequent UK Prime Minister should be entitled to the utmost respect in EU capitals until the year 2100.
It Sounds Expensive, But It Isn’t
Once the UK signs free trade agreements with China, with all of the UK’s Commonwealth partner nations, with the United States, and perhaps ASEAN nations, MERCOSUR, Russia and its CIS partners, African Union member nations, and with other free trade associations like the Pacific Alliance, the UK will dramatically ramp-up exports to more than five billion people around the world.
If the Prime Minister and her negotiators can sign reasonable free trade agreements with much of the world immediately post-Brexit, it means that instead of paying the EU a net annual payment of £8 billion — increased exports and other positive economic activity (such as increased tourism) will boost the UK economy by £10 to £20 billion annually.
Making Theresa May’s present plan look brilliant, in retrospect.
A Slight Lag, Followed by Economic Boom
Although the first year won’t show instant results, and it depends on the quantity and quality of those free trade agreements and upon how quickly UK exporters can respond to the changed market, as time rolls forward, paying £40 billion to the EU in order to gain a bespoke Brexit and Free Trade Agreement might seem like an exceptionally wise decision by Theresa May.
At the very least and to get the ball rolling in the first few days after Brexit, the United Kingdom could coordinate military procurement with other Commonwealth of Nations countries so that navy destroyers, frigates, coastal patrol craft and army tanks required by Commonwealth countries could be sourced from the United Kingdom. The bonus of such a plan is that through bulk purchasing power and common design parameters, such military equipment costs could be reduced for all member nations.
That plan has ‘instant success’ written all over it because there is a real need among those countries for new and used UK military equipment.
Either Theresa May is one of the brightest politicians of our century (paying £40 billion to get free of the EU more quickly and completely, and by obtaining a bespoke UK/EU free trade agreement) or she’s heading off to Brussels this week to accept whatever crumbs the EU mandarins toss her way.
As the entire country waits this week for the news reports, let’s hope she’s the former.
UK Taxpayers: If £40 Billion Isn’t Enough, Then It’s a WTO Brexit, Prime Minister
“It’s starting to get a little rich.” That seems to be the general opinion of UK taxpayers judging by the thousands of terse comments posted in the comments section of UK newspapers, on UK talk shows, and in places like YouTube where hundreds of Brexit videos (both pro and con) await your viewing pleasure.
But the general consensus seems to be that these extremely large numbers will require huge tax increases and may reflect badly on the Conservative Party’s chances in the next election.
It’s Fun, Fun, Fun, ’till Daddy takes the T-Bird away as the Beach Boys tune goes.
It’s great to make nice with the EU people and pay them billions in exit fees, but after a certain large number is reached taxpayers are likely to revolt, signalling the end of the Conservative reign for the foreseeable future.
Why Should There be a Divorce Bill at All?
This still, even at this late date, hasn’t been explained. AT ALL.
Not even Theresa May’s government seems to have received guidance from the EU Parliament or their negotiators as to why the UK should pay the outrageous sums demanded by the EU.
What’s it for? Everyone wants to know. The silence on this is deafening.
Both sets of numbers, whether proposed by the EU or the UK seem completely arbitrary to put it mildly.
Let’s Leave on Good Terms
Having said that, when you exit a marriage or a long-term business agreement it’s expected you don’t leave the other party in the lurch. Of course some kind of payment for loss of opportunity by the jilted party is de rigueur if you want warm trade relations to continue.
It’s also good business to NOT ask for wholly outrageous amounts of money (too late for that, I guess) otherwise, they risk ‘poisoning the well’ and even if trade continues, over time evermore billions of UK trade will be done with the U.S. and billions less with the EU.
What is Fair?
No change in money flowing across the English Channel for four more years (but no lump sum payment to the EU either) and Brexit can occur as scheduled on March 29, 2019 — but until then, the UK should continue to receive the exact same benefits from the EU as it will remain a paid-up member until that date. (Hey, no shorting us!)
After that date, the UK can continue to pay the EU the same £8 billion (net) for three more years — a full three years beyond Brexit day.
Calendar
- Article 50 triggered March 29, 2017, therefore,
- March 29, 2017 to March 29, 2018 (£8 billion net)
- March 29, 2018 to March 29, 2019 (£8 billion net)
- Also, March 29th 2019 will be Brexit day, and after that date the UK will no longer be an EU member
- March 29, 2019 to March 29, 2020 (£8 billion net)
- March 29, 2020 to March 29, 2021 (£8 billion net)
- March 29, 2021 to March 29, 2022 (£8 billion net) and the final payment to the EU
Take it or leave it Mr. Barnier, or the EU won’t get to sell their goods to the UK after March 29, 2019 except under WTO rules.
Many UK citizens will miss buying BMW’s, Mercedes Benz, Volkswagens, etc. for a couple of weeks (hehehe) until the EU would come to its senses. I bet EU heads would roll if it ever came to that.
OK, Seems Reasonable Enough. But What Will the UK Get in Return?
Nobody seems to know…
Theresa May’s Full Plate of Issues: November 2017
It’s always a busy time for a British Prime Minister, isn’t it? Poor Winston had WWII to deal with and faced some very tough weeks, several British PM’s had utterly sleepless weeks during the height of the Cold War, and Maggie endured a backsliding economy, the ‘Troubles’ in Northern Ireland, the Falkland Islands debacle, and destabilization in Zimbabwe — and sometimes all in the same week.
Theresa May on the other hand, has “only” Brexit to worry about — complete with an increasingly hostile EU Parliament, Donald Tusk demanding evermore unearned money ahead of any agreement with the EU, a Conservative Party that offers lukewarm support, Cabinet members either not communicating well or going off in various directions, and uncertainty in Zimbabwe an important Commonwealth partner.
Sheesh Theresa, anything else?
Where Do We Go Now?
There are only two outcomes here; Either Theresa May crumples under the strain of things imposed on her by others, or she tosses the lot of them aside and rises like the British lion with steely eyed determination, hunting down each challenge and owning it.
And that will determine the Theresa May premiership for future historians.
Frankly, she’s been too nice, too accommodating, too gentle and too PC, and these are wonderful attributes for normal folk but terrible liabilities for sitting PM’s.
Such niceties are detrimental to progress for Presidents, Prime Ministers, Kings or Queens, Popes, and Generals and Admirals because at a certain point someone (anyone!) must stand up and make the tough decisions and be seen to be in charge by their own people and by the public.
And in Britain’s case it’s got to be the Prime Minister of the United Kingdom. Full stop.
Don’t Hold Back Theresa, Tell Us How You Really Feel!
When the day finally arrives that Theresa May unloads on everyone trying to keep her ‘down’ is the day she will finally rise above the problems that surround her — most of which aren’t her fault BTW — although by being too nice, too docile, too accommodating, she may have allowed them to continue longer than is healthy for her and her government.
Theresa May’s To-Do List, November 20 – 27
- Fire the most problematic Cabinet minister (whomever that is)
- Tell Donald Tusk to take a hike! (Yes he’s a very nice man, but he’s NOT working for Britain’s best interest, is he?) See you sometime after January 1st, Donald.
- Inform the EU Parliament that a WTO Brexit is now Britain’s default option (but if they want to work something out, sure, we’ll consider it)
- Call the CEO’s of VW, BMW, Mercedes-Benz, Seimens, and other notable EU companies to ask if they still want to export to the UK. (Just a friendly question, not one word more, not one word less) That will get them phoning their EU parliamentarians to ensure free and fair trade with Britain continues after Brexit!
- Invite Nigel Farage and other well-known Brexiteers to 10 Downing St. for a working lunch. (Why would she do this? Think about it. All she ever hears is the tired Project Fear / Professional Remoaner party line. A PM needs to hear both sides of every issue, every week, in order to make the best decisions for the country)
- She needs to inform her Conservative Party that lukewarm support just won’t cut it any longer and that party fortunes are falling due to the aforesaid lukewarm support. It’s time for the party to throw their entire weight behind Ms. May as the next 16 months are chock-a-block full and leadership contests are quite out of the question if anything of value is to be accomplished in that small-ish timeframe.
- Theresa May, more than anyone should be calling for free and fair elections in Zimbabwe to replace the possibly deposed but ailing 93-year old Robert Mugabe and offering as many UK and Commonwealth election observers as Zimbabwe requests. And she should dangle an amount equivalent to 1/10th the annual UK foreign aid budget in front of Zimbabwe in order to put some impetus behind the drive toward free and fair democratic elections there. Maybe Grace Mugabe will win one election which might smooth the transition to open democracy? You never know until you try.
- Ask the Foreign Office why the UK spends foreign aid money in any country that isn’t a Commonwealth member nation? It astonishing this has been allowed to happen. Keep the money in the family, Theresa! (No, it’s not her fault, it’s been going on for ages) Not one sterling in foreign aid should go to a non-Commonwealth nation. Ever. There are plenty of other countries to assist non-Commonwealth developing nations and it’s high time for them to step-up.
- Keep standing up loud and proud in the House of Commons. Some of Theresa May’s best days in office have been the recent PMQ’s where the PM dressed like the owner of the House of Commons and blasted anyone who tried to put one over on her. At the very least, give as good as you get Ms. Prime Minister.
- A lot less with the pleasantries Theresa, and a lot more banging your fist on the Cabinet table. If you don’t appear to be in charge, you’re not.
Don’t Let Brexit be ‘The Biggest Thing In The UK’ or the EU Will Own Your Narrative!
Sure, Brexit is important. But it’s only a means to an end.
What’s really important are the opportunities that come after Brexit, like the ability to trade with any nation in the world under rules decided through friendly bilateral talks.
It’s the ability to have a UK-only foreign policy. It’s the ability to allow only the people into the country that Britain wants and can afford to house and provide jobs — instead of being forced to accept millions of cast-offs from other nations, and to tailor Britain’s new infrastructure construction to actual, definable needs, instead of trying to provide enough appropriate housing during a time of staggeringly irregular refugee and economic migrant flows.
It’s the ability to create UK-only laws with the guidance of Britain’s best legal minds and with the approval of British citizens. (Although the European Court will continue to be an important source of guidance to UK courts, for a time)
And the UK won’t be sending £8 billion (net) annually to the EU just to be nice neighbours. ‘Oh Luvvie, those nice Brits filled up the EU Parliament wine cellar again!’
Finally, ‘The Biggest Thing In The UK’ will again be the opportunity for it to become all that it can and should be — without restraint. And that should be Job Number One for every UK Prime Minister. Always.
Letter to Britain 