Archive for the ‘European Union’ Category

One year after the Brexit vote, Britain’s relationship with the EU is unlikely to change much. Here’s why. – Washington Post

By Andrew Moravcsik By Andrew Moravcsik June 26 at 5:00 AM

It has been a year since the Brexit referendum. Negotiations between Britain and Europe have now begun and will continue for most of the next decade. As a matter of formal international law, we do not know whether Britain will remain in the European Union, become an associate member, achieve a partially attached status akin to that of Norway or Switzerland, or negotiate a unique arrangement.

Yet one thing has become clear: A broad renunciation of substantive policy coordination with the European Union the hard Brexit option is unlikely. Instead, when it is all over, surprisingly few real policies are likely to change and those that do will probably favor Europe, not Britain.

These predictions stem from an analysis of the three most important factors that political scientists believe structure international economic and political affairs: interdependence, influence and institutions.

Interdependence: Why Britain does not really want to eliminate E.U. policies

British Euroskeptics often decry E.U. policies as unnecessary and damaging regulations crafted by arbitrary bureaucrats and unelected judges. But Brexit is unlikely to change the substance of very many E.U. rules because the British government does not really want it to.

[Pundits condemn Britains tough line on Brexit. Theyre wrong.]

In recent decades, Europe has moved decisively in directions Britain favors. The European Union is now built around a single market with shared regulations. Participation in other policies is essentially optional; thats true for the Euro, collective defense, the Schengen zone for free movement, social policy, homeland security, external immigration, and so on. Britain long opted out of most E.U. policies it dislikes. But on those issues where Britain participates fully in the European Union, it is deeply connected to Europe.

Prime Minister Theresa Mays negotiating stancetoward Brussels actually treats most of Britains current commitment to policy coordination with Europe as essential or uncontroversial. London does not even propose, much less expect, to tamper with free trade in manufactured goods and services under common regulations, which is the European Unions most important policy, or with common research policies or the rights of all Europeans currently living abroad.

Britain needs the European Unions liberal rules because it benefits from them: It wants continental countries to guarantee access for its exporters, service providers and educated individuals all areas where the British are relatively competitive. Nor does London propose to dilute anti-crime and homeland security policies or defense cooperation, which help keep Britain safe.

Influence: Why Britain lacks the bargaining power to get a better deal

The second reason Brexit is unlikely to involve major policy changes is that Britain is weak. British leaders are tempted, as governments usually are in international negotiations, to cherry-pick policies, keeping those they like but rejecting a few they dont. London has proposed to retake control of fisheries, agriculture, foreign trade and especially immigration policies, where it feels disadvantaged, and it has voiced ambivalence about the process by which rules are enforced. The Europeans, naturally, will not want to let Britain treat such policies as optional items on a menu.

On these disputed issues, Britains ability to exempt itself from existing E.U. policies depends on its power. The government promises toughness. May asserts that no deal is better than a bad deal. David Davis, her secretary of state for exiting the European Union, adds, If our country can deal with World War II, it can deal with this.

Yet experienced diplomats and political scientists distrust such Churchillian rhetoric. They know that what a government can get in an international negotiation depends on that countrys relative bargaining power.

[The real reason the U.K. voted for Brexit? Jobs lost to Chinese competition.]

Decades ago, political scientists Robert Keohane and Joseph Nye identified asymmetrical interdependence as the basic source of influence in international economic negotiations. When a buyer and seller bargain over the price of a house or a car, the person who needs the deal more is at a structural disadvantage. In world politics, power similarly stems from interdependence: The more dependent a country is on external flows of trade and investment, the more concessions it will make to secure a liberalizing agreement. That is why small countries, for which trade constitutes a critical lifeline, usually have less clout.

Britain is unlikely to extract many concessions from a far larger Europe on which it is asymmetrically dependent. Almost 50 percent of British exports go to Europe: They total 13 percent of British GDP, while European exports to Britain total only 4 percent of European GDP. If no agreement is reached, Britain has at least four times more to lose.

Britain will have to prioritize what it cares most about, such as future migration; it is likely to expend its limited bargaining power to achieve those goals. Yet, generally, if anyone is to make concessions to preserve the basic relationship, it is more likely to be Britain than Brussels. And that means retaining current policies.

To enhance British bargaining power, some Tories suggest rapidly signing trade agreements with non-European countries. Yet such trade agreements generally take a decade or more to negotiate and implement, and Britain is so small that it is unlikely to wield more influence on the United States or China than on the European Union.

Institutions: Why European political institutions block the spread of Euroskeptic populism

British Euroskepticsstill hoping for a hard Brexit might look beyond these international factors and hope that domestic politics will lead to their preferred outcome. Euroskepticism could spread, leading the European Union to collapse. Over the past year, many commentators have jumped on the bandwagon, portraying the Netherlands, France and other European countries as teetering on the brink of government by radical-right Euroskeptic populists who would demand Frexit, Grexit and similar referendums.

Yet a final reason a hard Brexit is unlikely is that surprisingly few Europeans are skeptical about the European Union; almost all who are lack real domestic power.

[The wave" of right-wing populist sentiment is a myth]

European political institutions create a bulwark against radicalism. Electoral systems underrepresent small splinter parties. Two-round elections prevent minorities from imposing their views. Coalition government excludes or moderates extremist parties. Binding referendums are widely illegal or narrowly constrained by the need for parliamentary approval.

Few of the dire press predictions about populism have come to pass or have any realistic chance of doing so. In France, National Front (FN) candidate Marine Le Pens first-round presidential run became global news, although she never had a real chance to prevail in the decisive second round. Now Emmanuel Macrons pro-European party has swept legislative elections, leaving only eight out of 577 seats for the FN. Recent Austrian elections had a similar result. In the Netherlands, even though Gerd Wilderss anti-immigrant and moderately Euroskeptic party came in second in recent parliamentary elections with 13 percent, it has been shunned as a coalition partner.

Even in the rare circumstances when Euroskeptics win, the fundamentals of E.U. policy remain largely unchanged. In a nonbinding referendum a year ago, Dutch voters rejected the European Unions treaty of association with Ukraine yet last month, without any public controversy, the Dutchparliament ratified the treaty anyway. In Hungary, Euroskeptic Prime Minister Viktor Orbns right-wing party controls the government. Yet while Orbn has criticized Brusselss immigration policy, he has never proposed exiting the European Union a suicidal prospect for a small country such as Hungary.

Britain is in a difficult negotiating position: Its economy and security are too deeply connected with Europe, its international bargaining power too limited, and its populists too politically constrained to sustain a hard Brexit. In theory, Britain could ultimately carry out its threat to leave the European Union, but in practice, more will remain the same than will change.

Andrew Moravcsik is professor of politics and public affairs at Princeton University and director of Princetons European Union Program.

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One year after the Brexit vote, Britain's relationship with the EU is unlikely to change much. Here's why. - Washington Post

‘You need a dose of reality’ Irish MEP in attack on Brussels over controversial tax reform – Express.co.uk

GETTY

Brian Hayes has issued a furious statement regarding attempts to unify business taxes for companies which trade in different European Union (EU) countries.

He said the EU was not being clear enough about how this proposal, known as the Common Consolidates Corporate Tax Base (CCCTB), would impact individual states like Ireland.

Mr Hayes described the situation as unacceptable in a post on his website.

The MEP for Dublin wrote: How can any Member State logically sign up to a proposal like this when they dont know the exact impact it will have on their tax revenues?

The Commission needs a dose of reality if they want this file to make real progress.

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German Chancellor Angela Merkel and French President Emmanuel Macron (not pictured) give a press conference at the end of the second day of the European Council in Brussels, Belgium, 23 June 2017

He said Ireland should continue to look into the benefits of the system but more understanding was required from Brussels.

Mr Hayes continued: We have on one hand the Commission telling us that the CCCTB will deliver huge savings to the EU and all Member States.

On the other hand, the Commission now says that they are not in a position to do a proper evaluation of the overall impact of CCCTB on each Member State.

We must remember that this is the Commissions proposal, they have ownership of it. If they want to convince Member States to back it, they need to have the necessary evidence available.

GETTY

Mr Hayes has repeatedly expressed frustration at the EU, recently warning against threats to punish Britain with a harsh Brexit deal.

He said last month: We know that there will be Member States who want to punish the UK, especially given that the British government is taking a hard Brexit line.

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There needs to be a strong counter balance to this view and Ireland should take a leading role in rallying against this harmful course of action.

He also said the months and years ahead would be a battle for all sides but Brussels must resist playing hardball.

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'You need a dose of reality' Irish MEP in attack on Brussels over controversial tax reform - Express.co.uk

Google Could Be a Day Away From At Least $1 Billion EU Antitrust Fine – Wall Street Journal (subscription)


Wall Street Journal (subscription)
Google Could Be a Day Away From At Least $1 Billion EU Antitrust Fine
Wall Street Journal (subscription)
BRUSSELSThe European Union's antitrust watchdog will as soon as Tuesday hit Alphabet Inc.'s Google with a fine of more than 1 billion ($1.12 billion) and demand changes to the company's business practices, according to people familiar with the ...
Google to Face EU Antitrust Fine as Soon as TuesdayBloomberg
Google's $1 Billion EU Antitrust Fine Could Be ImminentFortune
Google could be days away from $1 billion EU antitrust fineFox Business

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Google Could Be a Day Away From At Least $1 Billion EU Antitrust Fine - Wall Street Journal (subscription)

‘Absolutely disgraceful’ Gibraltar furious at EU for helping Spain SNATCH the Rock – Express.co.uk

Dr Joseph Garcia said the European Council had betrayed Gibraltars residents, who voted overwhelmingly to remain in the EU in last Junes historic referendum.

A draft document on the blocs Brexit strategy said no agreement on the EUs future relationship with the UK would apply to Gibraltar without the consent of Spain, giving Madrid a potential veto.

In the guidelines, the European Council identified future arrangements for the Rock as one of its 26 core principles.

It wrote: After the UK leaves the Union, no agreement between the EU and the UK may apply to the territory of Gibraltar without agreement between Spainand the UK.

GETTYEXPRESS

The European Council bent over backwards to give Spain something over and above anyone else

Dr Joseph Garcia

Speaking to Express.co.uk, Dr Garcia, Gibraltars Deputy Chief Minister and Brexit spokesman, regarded the EUs actions as a slap in the face for Gibraltars residents, who have relied on the bloc to protect them from Madrids aggressive attempts to snatch back sovereignty of the region.

He said: Let me say, 96 per cent of Gibraltar voted to remain in the European Union, and I think circumstances were driven because we have a large hostile neighbour next door that is trying to take Gibraltar over and European Union law has provided a degree of protection for Gibraltar against the different excessive governments in Madrid.

"For example, border fluidity which the European Commission at the request of David Cameron got involved in 2013. They sent inspectors to the border many times since then to make sure the Spaniards behave themselves in terms of the intensity of controls being conducted on people using the border at that particular time and were facing queues of up to eight hours waiting to cross in our direction.

I think that is something we should bear in mind, and why a large proportion of Gibraltar voted to remain in the European Union. "Weve come to terms with the fact that the UK is leaving the European Union and Gibraltar is now leaving with it.

There was one particular area which annoyed many people here, and that is the fact the European Council decided to give Spain a second veto, in what is known as Clause 24 in the Councils negotiating guidelines, over the application of a future relationship agreement between the UK and the EU, and the application of that agreement to Gibraltar."

Dr Garcia said the decision by the European Council to allow Spain the apparent veto on Gibraltars inclusion in any Brexit deal caused considerable concern and annoyance on the Rock.

He said: That was a slap in the face to the 96 per cent who voted to remain in the European Union, that is very much how people see it and people were extremely annoyed by that. What is the practical effect of that decision?

"Well, at the moment all member states of the European Union have a veto on anything relating to Brexit including Spain as well. What Spain secured in those guidelines is a second veto in relation to the application of the UK-EU deal to any aspect of the deal it is unhappy with, and that veto will affect Gibraltar only not the United Kingdom or the wider European Union.

That is totally unacceptable to Gibraltar, and we think it is absolutely disgraceful. It may have undermined the 96 per cent support the EU obtained in the referendum at this time last year.

Madrid, in the wake of Britains decision to leave the EU, said it would only consider agreeing to a deal involving Gibraltar if Madrid is given joint sovereignty of the Rock.

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Gibraltar has its own political system that makes many decisions within the territory but issues like defence and foreign affairs are determined by the UK Government in London

In February, Spanish prime minister Mariano Rajoy offered to assume joint sovereignty over Gibraltar, so its residents were not left without access to the EUs single market.

He said: I am absolutely convinced that we will reach an agreement so that these people will not be affected by political decisions.

Dr Garcia accused the European Council of bending over backwards to help Madrid in its desperate and aggressive attempts to take control of Gibraltar.

The Deputy Chief Minister said: It was something that caused considerable concern in Gibraltar, and also considerable annoyance.

People were not happy to see the European Council bend over backwards and give Spain something over and above what the other member states of the European Union are going to have.

The wording of the veto says it applies to any future agreement between the UK and the European Union, which suggests to us it doesnt apply to the exit deal we were talking about earlier.

That in itself is totally unacceptable because citizens of Gibraltar are EU nationals.

"The European Union likes to go around the world preaching about human rights, democracy and the defence of minorities this is actually a case where they have betrayed the human rights and legitimate expectations of people who live in Gibraltar.

All EU citizens who live in Gibraltar expected to be treated in the same way as EU citizens who live anywhere else. They had the right to ask for a veto if they want to, but the Council should not have bent over backwards and agreed to a Spanish veto.

Speaking after triggering Article 50, Theresa May vowed to defend the interests of Gibraltar, insisting she will not enter into negotiations over the Rock's sovereignty.

The Prime Minister said: "We are absolutely steadfast in our support of Gibraltar, its people and its economy.

"Our position has not changed. We have been firm in our commitment never to enter arrangements under which the people of Gibraltar would pass under the sovereignty of another state against their wishes, nor to enter into a process of sovereignty negotiations with which Gibraltar is not content.

"The letter is a notification in relation to our withdrawing from the European Union. Gibraltar is not a separate member of the EU, nor is it a part of the UK for the purposes of EU law, but we are clear that it is covered by our exit negotiations.

"We have committed to involving Gibraltar fully in the work that we are doing. We have been having regular discussions with the Government of Gibraltar, and we will continue to work with them in the future."

Express.co.uk have contacted the European Council for comment.

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'Absolutely disgraceful' Gibraltar furious at EU for helping Spain SNATCH the Rock - Express.co.uk

Albanians Go To Polls To Elect Parliament, Bolster EU Hopes – RadioFreeEurope/RadioLiberty

Albanians are heading to the polls on June 25 for parliamentary elections as the country looks to bolster its democratic credentials ahead of potential European Union membership talks.

The ruling Socialists and the rival Democrats are the leading parties looking to gain an outright majority in the parliament of the NATO-member country of 2.9 million people.

The country gained EU candidate status in 2014, but movement has been slowed by its perceived lack of reforms, including those involved with the election process.

The Democrats had threated to boycott the elections, demanding that Socialist Prime Minister Edi Rama resign ahead of the vote to ensure a fair vote.

The United States and European Union brokered a deal in May between the sides that overhauled election rules and allowed the opposition greater oversight over the process.

Voting starts at 0500 GMT and ends at 1700 GMT, with preliminary results expected on June 26.

Rama, 52, will be seeking his second term as prime minister. He described the vote, which will be held in front of international observers, as a pivotal moment for the country.

"These elections in Albania will either open the door to the European Union, giving us a seat at the negotiating table, or we can again slam it shut ourselves," said Rama, whose party appears to be ahead in most polls.

Focusing on the economy, Rama has set an annual growth target of more than 5 percent, from the current 3.5 percent. He has vowed to shrink the national debt from 71 percent of GDP to the low 60s.

Ramas Socialists will be facing the center-right Democrats of Lulzim Basha. Neither of the two was able to win the 70 seats needed for a majority in the 2009 or 2013 parliamentary elections.

The 43-year-old Basha has cabinet experience and has run on a platform of low taxes and has vowed to fight corruption.

His party has promised a 9 percent flat tax, free school meals, and a revamped health system.

Both men have served as past mayors of the capital of Tirana.

Both parties are seen as pro-Western and have expressed support for the global fight against terrorism.

Basha has expressed his admiration for U.S. President Donald Trump. Rama has expressed concerns about Russian influence in the country.

Lurking behind the scenes is Ilir Meta, the face of the center-left Socialist Movement for Integration (LSI), and widely described as a kingmaker in past coalition governments.

Former Prime Minister Meta, 48, a veteran of post-Communist politics, is president-elect after being voted to the largely ceremonial post by parliament on April 28. He stepped down from the LSI as required to assume the presidency.

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Albanians Go To Polls To Elect Parliament, Bolster EU Hopes - RadioFreeEurope/RadioLiberty