Just the beginning

London's weak position is visible in the Brexit deal

Image
Business Standard Editorial Comment
Last Updated : Dec 12 2017 | 10:44 PM IST
The European Union and Great Britain have finally made a breakthrough in their divorce talks. Negotiations had been going on for over six months without much progress on a way forward for Brexit. But it was announced on Friday that concord had been achieved among Europe’s leaders and by British Prime Minister Theresa May on certain key aspects. Two of the more problematic questions pertained to the status of current residents of the UK who are EU citizens, and the exact amount that London owes Brussels as its share of outstanding obligations. The leaders have agreed on answers to these questions: London will pay Brussels 40 billion euros in the coming years, and EU citizens living in the UK will have their rights protected by the European Court of Justice. This is a far cry from the original offers from London; Ms May conceded absolutely everything she could in order to get things moving. This may have been wise, but it does not augur well for future negotiations from Britain’s perspective.

This agreement is the beginning and not the end of discussion. It sets some terms for Brexit; now comes the far more arduous task of determining exactly what relationship the UK and Europe will have after Brexit is completed. Will there be a simple free trade agreement? Will there be no such deal? Will there be a deeper agreement on trade, services and immigration, such as the EU has with Norway? All this is still unknown. What is worth noting, however, is how difficult the process has been so far – not because of divides between London and Brussels, or within the multi-nation European bloc, but because of the raucous domestic coalition Ms May has to manage. Her own position weakened by a disastrous election campaign in which she lost her majority, she has had to balance radical euro-sceptics within her Conservative Party with others who are more sympathetic to Europe and she has also had to play off free-trade fans against economic nationalists. These divides, which are also visible in the Opposition Labour Party, will make Britain’s own approach to negotiations over its future relationship with Europe schizophrenic. Any outcome is still possible.

In addition, Ms May was faced with a revolt by the Democratic Unionist Party (DUP), which represents Protestants in Northern Ireland, and which Ms May relies on for a working majority in the House of Commons. The DUP objected to a clause in the draft agreement that suggested that Northern Ireland would have a different regulatory structure, closer to the EU’s, than the rest of the country. This was necessary in order to avoid border checks between Northern Ireland, part of the UK, and the Republic of Ireland to its south. An open border was a crucial ingredient in the peace agreements that ended the decades of violence in Northern Ireland. It is worth noting also that there is no real consensus among Belfast, Dublin, London and Brussels on how to solve this problem. No obvious solution presents itself. It is possible that, in a few years from now, Britain will be presented with an option: A choice between Brexit and the destruction of a hard-won peace in Ireland. Again, any outcome is possible.


One subscription. Two world-class reads.

Already subscribed? Log in

Subscribe to read the full story →
*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

Next Story