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    Irexit

    Since the Brexit referendum in June I have been rapporteur of a Private Study Group of Irish economists and constitutional lawyers who have been examining what we should do when and if the UK leaves the EU. In August their report was sent to the Taoiseach, his Ministers and the Secretary-Generals of all Government Departments. It has been sent also to the EU embassies in Dublin, to UK Prime Minister Theresa May, her key Ministers and senior civil servants concerned with Brexit, and to a wide range of British Brexiteers whom my colleagues and I have got to know over the years. The report’s basic conclusion is that it is in the interest of the Irish people that Brexit should be accompanied by “Irexit” – Ireland exit. We applied to join the then EEC in 1961 because Britain and Northern Ireland did so. We joined simultaneously with the UK and Denmark in January 1973. Now that Britain and the North are leaving, we should do the same, for three principal reasons. The first is that Ireland is nowadays a loser, not a gainer, from EU membership. In 2014 we became a net contributor to the EU Budget for the first time, paying in €1.69bn and receiving €1.52bn. This means that in future any EU moneys that come to the Republic under the CAP, EU cohesion funds, research grants, support for community groups and the like, will be Irish taxpayers’ money coming back, employing some Brussels bureaucrats on the way. Henceforth the EU will no longer be the ‘cash cow’ most Irish people have regarded it as for decades, and which is the basis of much of our official and unofficial europhilia. A bonus would be that outside the EU Ireland can take back control of its sea-fishing waters. Eurostat’s estimates of the value of fish catches by non-Irish boats in Irish waters since 1973 are a many-times multiple of the EU cash we got over that time. The second reason why Irexit should go along with Brexit is that that is the only way of preventing the North-South border within Ireland becoming an EU external frontier, with new dimensions added to Partition, affecting trade, travel and different EU laws and legal standards as between Dublin and Belfast. For example without the UK as an EU Member alongside it, the Republic would be in a much weaker position to withstand pressure to adopt continental norms in EU crime and justice policy, which differ signi cantly from Anglo-Saxon ones in such areas as trial by jury, the presumption of innocence and habeas corpus. Such divergence would adversely affect good relations within Ireland as a whole and while it would not undermine the Peace Process, it would not help it either. If we stay in the EU while the UK leaves it would mean that for Irish reunification to come about at some future date the people of the North would have to rejoin an EU that Britain had long left, adopt the euro-currency, take on board a share of the €64bn of private bank debt which the ECB insisted that Irish taxpayers nance during the 2008-2010 currency crisis, and implement the further integration measures that are likely to be needed over the coming years if the Eurozone is to be held together. It would give 26 EU Governments in addition to the UK and the Republic a veto on eventual Irish reunification. Such a development should be unacceptable to all Irish nationalists. Another consideration is that if the South remains in the EU while the North leaves along with Britain, future Irish reunification would make the whole of Ireland part of an EU military bloc that is likely to come under greater Franco- German hegemony following Brexit. That potentially could be a security threat to Britain. This will surely change significantly the calculus of British State interest and give Britain a strategic reason for keeping the North inside the UK, an interest it has not got today. The third reason why most Irish people should now reassess their attitude to the EU is that the business case for Ireland remaining an EU member diminishes significantly if the UK leaves. Most foreign investment that comes here is geared to exporting to English-speaking markets, primarily the UK and USA, rather than to continental EU ones. Once the UK leaves the EU two-thirds of Irish exports will be going to countries that are outside it, as they are going today to countries outside the Eurozone, and three-quarters of our imports will be coming from outside. Outside also, Ireland’s 12.5% corporation tax rate would no longer be under EU threat. Of course our relations with the UK and the EU in the Brexit context are complicated by our membership of the Eurozone. Irish policy-makers abolished the national currency and joined the Eurozone in 1999 on the assumption that the UK would do so also and that by going first they would show how communautaire they were. It was an utterly irresponsible action in view of the fact that the Republic does most of its trade with countries that do not use the euro. With the pound sterling falling against the euro as the UK disengages from the EU, Ireland desperately needs an Irish pound that can fall with it, so maintaining its competitiveness in its principal export markets – the UK and America. That is why the Irish State urgently needs to get its own currency back. Economist Chris Johns noted in the Irish Times on 20 August that if the Irish pound existed today it would be worth some 10 percent more than the pound sterling. This was the level it reached in January 1994, when Irish industry was in crisis because of its overvalued exchange rate – explicitly then, implicitly today. That in turn precipitated the major devaluation which inaugurated our ‘Celtic Tiger’ years. Ireland needs to regain the freedom of being able to determine its own exchange rate. There is no legal way to

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    Braced for Brexit

    Back in the 1960s I once stood on the plinth of Nelson’s column in Trafalgar Square, London, between Landseer’s lions, at a Connolly Association rally against anti-Catholic discrimination by the Northern Ireland Stormont regime. Lots of people were waving tricolours. Forty years later I spoke again in the same spot, at an anti-EU rally organised by the Democracy Movement, one of Britain’s EU-critical bodies, before a sea of little Union Jacks. I smiled to myself. Here were the English discovering the drawbacks of being ruled by foreigners, by people they did not elect, and how EU laws had come to have primacy over those of their own Parliament. They were reacting against losing their democracy and national independence. British Euroscepticism is largely English nationalism. The political psychology of the governing élites in England and Ireland is very different, not least in their attitudes to the EU. The lack of self-confidence of the Irish élite is shown by their continual anxiety to be seen as ‘good Europeans”’. Hence for example Enda Kenny’s boast that our recent modest economic improvement has “restored our reputation in Europe”. I was at the EU summit in Gothenburg, Sweden, a few days after Irish voters rejected the EU’s Treaty of Nice in 2001. The then Taoiseach, Bertie Ahern, was virtually beating his breast there as he explained apologetically to the international media how Irish voters were mistaken, but they would have a chance to change their minds in a second referendum – which of course duly happened. By contrast England’s governing élite has the psychology of a ruling power. For centuries they backed the second strongest powers of Europe against the strongest, thereby preventing any one power dominating the continent. When the EU came along after World War II they joined it in the hope of either prising France and Germany apart or else of being co-opted by the Franco-Germans as an equal partner to run ‘Europe’ as a triumvirate. Both hopes have proved illusory. Hence English disillusion with the EU. They never shared the Euro-federalist visions of the continentals – something that former Commission President Jacques Delors expressed when he said in 1993: “We’re not here to make a single market – that doesn’t interest me – but to make a political union”. Prime Minister Cameron wants to stick with the EU. But most of his party and large swathes of British public opinion see the EU as a low-growth economic area mired in recession, with a dysfunctional currency and high unemployment. They want to regain their freedom of action, especially over trade, by leaving. They want to develop trade and investment links with the five continents and the far-flung English-speaking world. The obvious power imbalance between the two sides would make it extraordinary if the “Leave” people were to prevail over the “Remain-Ins” in the Brexit referendum. On the one side are the British Government, the American Government, the German and 25 other EU Governments, Wall Street, the CBI, the TUC, the British Labour Party, the Brussels Commission, the European Movement, most EU-based High Finance and Transnational Corporations, plus in Ireland all the parties in the Oireachtas. On the other side is a diverse and sometimes quarrelsome range of groups and individuals on the Left, Right and Centre of British affairs, united only by their desire to get back their right to make their own laws, control their own borders and that their Government should decide independently its relations with other countries. It would be unrealistic though to think that a “Remain-in” vote in June will decisively settle the matter. It is likely merely to delay the inevitable divorce, for the interests of the continentals and the island Britons are just too fundamentally opposed. And what of the Celtic fringe? Contrary to the received wisdom there could well be a substantial “Leave” vote in those areas too. If the UK as a whole votes to leave, will Scotland want to break away from the rest of the UK in order to remain in the EU, abolish sterling and adopt the euro – that being a requirement for all newly acceding States to the EU? It is very doubtful. The Irish media have not yet picked up on one big downside for Irish people of the deal David Cameron concluded in Brussels before he launched his referendum. This is the implication of the EU agreement that if the UK votes to remain, new immigrants to the UK are liable to have lower social benefits for some years than those already there. It will be impossible under EU law to differentiate between Irish immigrants on the one hand and non-Irish ones on the other. This means that new Irish immigrants to Britain or the North must face cuts in social bene ts too if the “Remain” side wins. This proposal will not affect Irish people already settled in the UK, but solidarity with their fellow countrymen and women should still cause lots of them to vote Leave. If a booming British economy, freed of EU regulation, becomes the Singapore of Europe outside the EU, which is perfectly possible, it can only benefit Ireland economically. Lurid scenarios are being painted of the consequences of Britain leaving the EU while Ireland remains in it. If Brexit happens some uncertainty is inevitable for a year or two, but it will not be the end of the world. Free trade will continue between Ireland and the UK under all realistic “Leave” scenarios, so there will be no customs posts on the North-South border within Ireland, no passport controls or anything like that. Such claims are simply scaremongering, part of “Project Fear”. What of Northern Ireland in the event of Brexit? Over the past decade the UK has paid over £150 billion to the EU budget – far more than it has got back. It sends £350 million to Brussels every week. This is some ten times the Northern Ireland schools budget. EU subsidies to the North in the form of

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