Brexit: a summary of the situation (Part 2)

Barbara Zak

Brussels’ response : you can’t have your cake and eat it too

British Prime Minister Theresa May (L) welcomes President of the European Council Donald Tusk (R) to 10 Downing Street in London, Britain, 08 September 2016. May and Tusk held talks on Britain's exit from the European Union. EPA/ANDY RAIN

British Prime Minister Theresa May (L) welcomes President of the European Council Donald Tusk (R) to 10 Downing Street in London, Britain, 08 September 2016. May and Tusk held talks on Britain’s exit from the European Union. EPA/ANDY RAIN

Following the announcement of the results of the referendum on the membership of the United Kingdom (UK) to the European Union (EU), it was understood that the EU respected the change of heart of the majority of the UK citizens. EU leaders do not want to go back in time but agree on the UK leaving the EU as soon as possible. Brussels is simply waiting for the formal notification of the UK to trigger the article 50 of the TEU. Even Donald Tusk (the President of the European Council) told Theresa May “the ball is in your court”. However the EU refuses to negotiate with the UK until the government has triggered the article. The reason may be the fear of contagion of a “Brexit” in other EU member states – Brussels is afraid of the ripple effect. With the rise of nationalism and populism, we can expect from far-right ruling parties to hold a referendum about leaving the EU in their countries. Moreover, the current uncertainty around the economy of the UK can have repercussions on the EU’s trade. The decrease of investments in the UK can be contagious to the European continent. There is an economic and ideological cost to the delay of the withdrawal of the UK.

            The heads of the member states, without the head of state of the UK, met informally on the 16th of September 2016 in Slovakia in what is called the Bratislava summit. The aim of this meeting, which was already planned before the referendum, was to discuss the stability and security of the EU. The withdrawal of the UK was not on the agenda of this gathering. However, it was more a way to show the unity and thus the strength and solidarity of the EU. However, on the inside, the EU is at a crisis – it is only a matter of time before another member state reveals its intention to withdraw from the Union. For instance, a referendum on the EU relocation plan will be held in Hungary on the 2nd of October 2016, which goes against the EU refugee policies. This “EU Quotas Referendum” illustrates the fact that some members of the EU disagree with the policies of the EU – it may be the beginning of their rebellion. As a matter of fact, the heads of states of Hungary, Poland, the Czech Republic and Slovakia recently met several times as the Visegrád Group in order to discuss the issues related to the EU. As a consequence, the EU cannot be too soft towards the UK in order not to incite other member states to do the same. The argument of the economy is the strongest: the single market can be open to the UK only if they accept the free movement of people. Leaving the EU does not mean abandoning its drawbacks while still benefiting from its advantages.

The conundrum of Scotland, Northern Ireland and Gibraltar

            Even though the “leave” won over the “remain” in the EU referendum, anti-Brexiters still cannot recover from the results, in particular in the parts of the UK where the “remain” was overwhelming: Scotland (62%), Northern Ireland (55.8%) and Gibraltar (95.9%).

Nicola Sturgeon, First Minister of Scotland

Nicola Sturgeon, First Minister of Scotland (Photo: GETTY)

            Many Scots, right after the announcements of the results of the UK referendum, were asking for a second referendum on this topic. However May’s government declared that a second referendum will not be held. There are some possibilities about a second Scottish independence referendum though – but not before the article 50 of the TEU is triggered. Nevertheless, both Labour and Liberal Democratpoliticiansalongwiththe polls are against the will of the First Minister of Scotland Nicola Sturgeon to have a second independence referendum. The “Reverse-Greenland” concept may be the solution for Scotland as they wish to stay in the UK and in the EU. Parts of the UK can maintain Britain’s membership of the EU. This means that Scotland does not need to apply to access the EU. The Greenland solution refers to the Greenland treaty which entered into force in 1985, following the Greenlandic referendum of 1982: Greenland, at that time part of Denmark, could leave the EU while Denmark was still a member state of the EU. In the case of Scotland, it is the opposite situation. Scotland would have an associate membership of the Union, namely the access to the single market, EU citizenship and free movement of goods/people/workers/students. They will pay membership dues. In a nutshell, they would take the seat of the UK in Brussels.

The case of Northern Ireland is a bit different from Scotland. Leaving the EU would mean too big economic consequences for Northern Ireland in comparison with Britain. There is the fear of losing the agricultural subsidies that are actually much needed and in demand by farmers. In addition, the transaction costs for trading in the EU (that did not exist before) would be overwhelming for Northern Ireland. Instability would resume Northern Ireland’s situation. Another problem, that is geographical this time, would be the border with Ireland, which is a member state of the EU. Irish people are afraid to turn back in time to the Troubles period (conflict in Northern Ireland during the late 20th century). Thus they aspire to keep the free movement and the customs union across the border – the trade between two states decreases the possibility of them being at war. However, everything is in the hands of May’s government and the EU’s willingness to be flexible during the future negotiations. Arlene Foster, Northern Ireland’s First Minister stays confident – May should not negotiate a Brexit that simply suits English interests. Yet the best option for Northern Ireland would be the same as Scotland: the Reverse-Greenland solution, that is to say to remain in the UK and in the EU.

Gibraltar was one of the territories where the “remain” vote was strong: nearly 100%. The main reason is the economy: Gibraltar imports exclusively from the EU. The transaction costs for trading with the EU would be utterly crushing Gibraltar. The Reverse-Greenland solution could be effective, only if there was no hiccup – more precisely, a Spanish hitch. In fact, Spain has a sovereign claim over Gibraltar due to its history. If the UK leaves the EU, Spain could isolate Gibraltar from Europe by building a wall alongside the border. Crossing the wall would mean paying border fees. In the case of applying the Reverse-Greenland solution, Gibraltarians are afraid that Spain would not accept it and veto it. The Spanish Government could veto the terms of any Brexit negotiation between the UK and the EU that sought to include Gibraltar. Indeed, Spain is fully entitled to do so: as soon as the UK activates the withdrawal process, the European Council must agree the broad terms of the withdrawal negotiation by unanimity. Spain’s Minister of Foreign Affairs and Cooperation José Manuel García-Margallo is resolute and says Spain will not leave the case until it receives at least the joint control of Gibraltar. As a result, Gibraltarians call for a second referendum explaining that the “leave” option was not clear enough – yet it is well understood that it is probably their last hope to stay in the EU.

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Sources:

Brussels’ response

https://www.theguardian.com/politics/2016/sep/08/donald-tusk-theresa-may-article-50-brexit-negotiations-eu

https://www.theguardian.com/politics/2016/jun/25/uk-faces-brexit-crisis

https://theconversation.com/brexit-et-dependances-61830

https://www.theguardian.com/world/2016/sep/16/bratislava-summit-donald-tusk-urges-eu-leaders-not-to-waste-brexit-crisis

http://www.telegraph.co.uk/news/2016/09/15/bratislava-summit-what-is-on-eu-27s-agenda—and-what-is-not—a/

http://www.france24.com/fr/20160916-sommet-bratislava-ue-relancer-apres-brexit

Scotland

http://www.express.co.uk/news/politics/683056/Brexit-will-Scotland-leave-UK-Britain-second-Scottish-independence-referendum-break-up

http://www.independent.co.uk/news/uk/politics/brexit-scotland-nicola-sturgeon-eu-uk-theresa-may-scottish-veto-block-withdrawal-a7141231.html

http://www.dailymail.co.uk/wires/pa/article-3805290/Sturgeon-call-second-Scottish-independence-referendum-autumn-2017.html

https://www.theguardian.com/politics/2016/jul/17/nicola-sturgeon-would-consider-2017-scottish-independence-referendum-brexit

http://www.express.co.uk/news/uk/706467/Nicola-Sturgeon-humiliated-Scots-second-independence-referendum-vote-Brexit-EU

https://www.theguardian.com/commentisfree/2016/aug/28/the-guardian-view-on-a-second-scottish-referendum-sturgeon-has-no-choice-but-caution

http://www.itv.com/news/2016-08-13/uk-could-do-a-reverse-greenland-to-allow-scotland-to-remain-in-the-eu/

Northern Ireland

https://www.theguardian.com/uk-news/2016/aug/10/northern-ireland-leaders-set-out-brexit-demands-to-theresa-may

https://www.theguardian.com/uk-news/2016/jul/25/theresa-may-hard-border-fears-northern-ireland-visit-brexit

http://www.newstatesman.com/politics/staggers/2016/07/brexit-beginning-end-northern-ireland

http://www.lemonde.fr/referendum-sur-le-brexit/article/2016/07/27/l-irlande-casse-tete-de-l-apres-brexit-pour-theresa-may_4975155_4872498.html

Gibraltar

http://www.express.co.uk/news/politics/665033/EU-Referendum-2016-What-Brexit-Mean-for-Gibraltar-Rock-British-Territory-Spain

http://www.express.co.uk/news/uk/650355/Brexit-threat-Spain-will-control-Gibralter-soon-as-Britain-leaves-EU

http://chronicle.gi/2016/07/spain-could-veto-brexit-talks-margallo-says/

http://chronicle.gi/2016/03/britain-must-include-gibraltar-in-post-brexit-negotiations-report-says/

http://www.bbc.com/news/world-europe-36618796

https://www.ft.com/content/bea8ecf4-452a-11e6-9b66-0712b3873ae1

Read more:

https://theconversation.com/the-eu-bratislava-summit-explained-65604

https://www.theguardian.com/world/2016/sep/13/expel-hungary-from-eu-for-hostility-to-refugees-says-luxembourg

http://uk.reuters.com/article/uk-britain-eu-scotland-greenland-idUKKCN0ZJ0A1

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