Nine lessons and no carols: Brexit Lesson 3

Brexit is a process not an event. And the EU, while traditionally poor at strategy, is very good at process. If we don’t start to take the process seriously and get better, we will get hammered. Repeatedly.

One cannot seriously simultaneously advance the arguments that the EU has morphed away from the common market we joined, and got into virtually every nook and cranny of U.K. life, eroding sovereignty across whole tracts of the economy, internal and external security, AND that we can extricate ourselves from all that in a trice, recapture our sovereignty and rebuild the capability of the U.K. state to govern and regulate itself in vast areas where it had surrendered sovereignty over the previous 45 years.

The people saying 3 years ago that you could were simply not serious. And they have proven it. They also had not the slightest plan on what they were going to try and do and in which order.

Bold, confident assertions, during and in the many months after the referendum that we would have a fully fledged trade deal with the EU ready and in force by the day of exit, and, not only that, rafts of further free trade deals with other fast growing countries across the globe, were just risible when they were made, and have now proven empty bluster.

Likewise, all the breezy assertions that “no deal” would pose no great problems for aviation, for road haulage, for medicines, for food, for financial services, for data and for any number of other areas – for most of which, “WTO terms” are simply not a safety harness.

No number of repetitions of the grossly misleading term “WTO deal” makes it any more real or effective. This is not because of Establishment remainer sabotage. It was because these were always fantasies, produced by people who at the point they said this stuff, just did not understand what they were saying.

Unfortunately, before much of the serious work to look at where we wanted to land post exit had happened, we locked ourselves into a date certain for the invocation of Article 50. That duly forfeited at a stroke any leverage over how that process would run. And it gave to the 27, who had, by the morning of June 24th, already set out their “no negotiation without (Article 50) notification” position, the first couple of goals of the match in the opening 5 minutes.

All the people who are now loudest in bemoaning the Prime Minister’s deal were, of course, the loudest in cheering from the rafters as she made this fateful error. Many are now hastily rewriting history to claim they were always against it. They weren’t, though. 

One cannot blame the EU27 for playing it as they did. Though one can and should blame them for having had too few serious top level discussions about how they see the relationship with the UK working after exit.

Before the Prime Minister had even turned up for her first ever leaders’ meeting, the combination of that decision to guarantee notification by a certain date and the red lines substance of her first Party Conference leaders’ speech had completely cemented the solidarity of the 27, which has held soundly ever since, on how to kick off and to design the sequencing of the process which has led to where we are today.

It’s about the one first order issue on which the EU27 have since held together in near perfect harmony. If that does not tell you something about this Government’s negotiating prowess, what will?

But in the total self-absorption of Party Conferences and Westminster, no one was paying much attention to how the EU was patiently constructing the process designed to maximise its leverage.

Even by April, when the first set of so-called Guidelines emerged from the leaders at 27, it was hard to get anyone here to read them. We were, as usual, preoccupied more with the noises from the noisy but largely irrelevant in Westminster, while the real work was being done on the other side of the Channel.

But those very expertly crafted Guidelines led completely inexorably to the December 2017 agreement. And the substance of that, in turn, led equally inexorably to all the elements of the deal now on the table which has caused the furore. The battle on sequencing which the then Brexit Secretary declared to be the battle of the summer of 2017, was actually long since lost before he started fighting it.

And because the U.K. had given no serious thought to the question of transitional arrangements until it was too late – precisely because of the fantasies propagated that this would be one of the easiest “trade deals in human history” and all would be definitively tied up legally by exit day – by the time they actually did focus, London was urgently begging for what is now pejoratively termed the “vassal state” transition, precisely because it knew that it could not be ready for a post Brexit equilibrium state by March 2019.

All the EU had to do was to ensure that the transition hinged off a Withdrawal Treaty containing a permanent legal all-weather backstop, and it knew that the U.K. had no alternative but to sign such a Withdrawal Agreement.

No amount of bold, but empty, talk about “no deal” being better than a “bad deal”, however oft repeated at whatever level of Government, made the slightest difference to the 27’s assessment of the negotiating reality: the U.K. needed much more time, and failure to get it would be much worse for it than all alternatives.

Whilst it is obviously good to know your “best alternative to a negotiated deal”  in all negotiations, you have to know whether you can walk out, and be very sure you understand what could happen if you do, and what you can do to mitigate all downsides.

But if you know you cannot mitigate, don’t bluff. It just makes you look weak, not strong, and it fools no one.

Those who were suckered into doing, or cheering, the wrong thing in the negotiation at the wrong time for the wrong reason, and duped themselves and others into thinking it would all be extraordinarily simple, cannot acknowledge that of course. So the narrative has be of “Betrayal” by a remainer elite who sabotaged the “no deal” plans

And if you set yourself a ludicrous, unachievable deadline for a complete regime change, don’t be shocked that others use the pressure of the clock and the cliff edge to dictate the shape of Brexit.

It is, in the end, the total absence of a serious realistic plan for the process of Brexit as well as a serious coherent conception of a post Brexit destination, which has delivered this denouement to stage 1 of what will be, whether Brexit proponents like it or not, a much longer process.

For the next stage, we need much less self-absorption, a vastly clearer, less self-deceiving understanding of the incentives on the other side of the table, and a less passive approach to the construction of the process. We need serious substance not plausible bullshit.

We already see in the Withdrawal Agreement the clear signs that, having succeeded with its negotiating plans in this phase, the EU will repeat the clock and cliff edge pressures in the run up the next U.K. election, knowing it can and will exact concessions as the deadline looms. But walking away to a “no deal” outcome, managed or not, does not escape that pressure.

One can of course blame the EU for overdoing their success in ordering the whole negotiations but the basic truth remains that it really helps, in a negotiation, actually to know what you are doing, where you want to go, the sacrifices you are willing to make and be stone cold sober about the real interests of the other party.