John Bruton

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Tag: UK

“El Reino Unido ha puesto a Irlanda en una situación casi imposible”

El Mundo correspondent, Carlos Freneda, interviewed John Bruton for Spanish Newspaper. 

“El Brexit dañará más a la economía irlandesa que a la británica”, afirma el ex primer ministro irlandés John Bruton

Londres abonará entre 45.000 y 55.000 millones de euros como factura por el Brexit

John Bruton (Dunboyne, 1947) fue primer ministro irlandés en los “felices” 90: del mercado único que suprimió las barreras físicas entre las dos Irlandas, al Acuerdo del Viernes Santo que allanó el camino al proceso de paz. Bruton advierte ahora que los avances logrados en los últimos veinte años pueden saltar por los aires con el Brexit, que tendrá un mayor impacto económico y social en la vecina Irlanda que en el propio Reino Unido.

¿Hay alguna manera de soluciona el “problema irlandés”? ¿Se puede quedar una parte de isla dentro de la UE y la otra fuera?
El obstáculo está en la mente cerrada de la facción pro-Brexit del Partido Conservador. No entienden que los mercados abiertos requieren normas comunes, decididas democráticamente entre los países e interpretadas de un modo uniforme. Eso es lo que facilita la UE. La permanencia en el mercado único y en la unión aduanera podría ser una solución, pero los brexiteros (y los unionistas) no ven nigún valor en ello… El Reino Unido ha puesto a Irlanda en una posición casi imposible, tanto para preservar el proceso de paz como para asegurar el libre comercio entre las dos partes de la isla. Una vuelta a la frontera dura seriviría para aislar los nacionalistas del norte de una manera peligrosa… El Brexit dañará potencialmente más a la economía irlandesa que a la británica. El Reino Unido puede haber votado a favor de este acto de autolesión económica, pero los ciudadanos de la República de Irlanda no han votado, y los de Irlanda del Norte han votado por la permanencia.
El Gobierno británico ha llegado a sugerir una frontera “virtual” y sin fricciones, sin necesidad de volver a instalar aduanas y con los últimos avances tecnológicos…
Eso no es posible. Dos terceras partes de los cargamentos que atravesarán la frontera tendrían que ser inspeccionados en algún lugar, y eso crearía poblemas.
Usted ha llegado a decir que Irlanda debe hacer cuanto esté en su mano para evitar el Brexit ¿Lo cree aún posible?
Lo que creo que debería hacerse en prolongar el tiempo límite que fija el Artículo 50 y tener un margen de dos a seis años para intentar resolver las complejidades a las que nos enfrentamos. Así se daría tiempo a los británicos para cambiar de opinión si lo consideran, y eso haría innecesario un acuerdo de transición. El Reino Unido debería seguir siendo un miembro con derecho a voto durante ese tiempo.
¿Qué pasaría en Irlanda si el Reino Unido opta por marcharse de un portazo y sin un acuerdo con la UE?
Eso sería desastroso para nosotros a medio plazo, y a largo plazo dañaría considerablemente las relaciones entre Irlanda y el Reino Unido. En ese caso, Irlanda tendería los puentes económicos y culturas hacia otros países como Francia y España, como ocurrió durante los conflictos del siglo XVI y XVII (en la batalla de Kinsale, sin ir más lejos).
¿Reconocerá el Reino Unido el daño que el Brexit puede causar a sus vecinos más próximos?
Hay muy pocas señales de que quieran reconocer el daño, o que les importe lo más mínimo. En lo único que piensan es en sí mismos y en “recuperar el control”. El Brexit es un proceso más “psicológico” que económico, sobre el papel de Inglaterra en el mundo. No olvidemos que el Reino Unido es una idea puesta en marcha para asegurar y preservar los intereses estratégicos y militares de Inglaterra.
¿Qué sectores de la economía irlandesa se verían afectados por el Brexit?
El sector manufacturero sobre todo: las mercancías que no pueden ser transportadas fácilmente por avión para evitar el Reino Unido. Y también la producción de carne y de lana. La agricultura sufriría mucho si tenemos normas distintas en el norte y en el sur. El sector energético lo notará también.
¿Piensa que el Brexit puede en última instancia dar impulso a la unificación de Irlanda?
El principal obstáculo a la unificación es la hostilidad por una parte muy importante de la población en Irlanda del Norte. Las actividades en el pasado del IRA y el papel que juega ahora Sinn Féin refuerza esa falta de voluntad. Tampoco creo que la población en la República de Irlanda esté dispuesta a aceptar el peso de forzar a un millón de personas a integrarse contra su voluntad en una Irlanda unida. El coste no sería solo económico, sino en términos de sociales y de sectarismo. Por supuesto que habría mucho menos problemas si ese millón de personas cambiara de opinión, pero hay pocas señales de que eso sea posible.

WHY I BELIEVE THE UK SHOULD STAY IN THE EU

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Stonyhurst College

THE EU IS A VOLUNTARY UNION

The fact that the British voters are free to have a referendum, and free to decide to leave the
European Union shows that the European Union is a voluntary Union.
It is not an Empire, which something a country would not be free to leave.
Nor is it a Federal Union like the United States, which does not permit its member states to leave either.
The EU’s voluntary character is one of the reasons why a number of states are still looking to join the EU.

THE FIRST TIME IN 60 YEARS ANY COUNTRY HAS CONSIDERED LEAVING

The 23 rd of June 2016 will, however, be the first time in the EU’s 60 year history, that any state has contemplated leaving.
This is a serious matter not just for Britain, but for all the countries of the EU.
So British voters, acting as as citizen legislators on 23 June, ought to think of the risks, that a British decision to leave might create for neighbouring countries in the EU, like Ireland. Voters here in Lancashire need to think about the consequences for peace in Ireland of the deepening of the border in Ireland that would flow from a Brexit decision on 23 June.

They also should consider the risk that Britain deciding to leave would create a precedent that would weaken the bonds that hold the remaining 27 countries together. The Parliament in Westminster has passed to voters the responsibility for deciding if a possible breakup of the EU would really be good for Britain, and for Europe too. It is a big responsibility.

STABILITY IN EUROPE HAS ALWAYS BEEN IMPORTANT TO BRITAIN

Stability in Europe has been a long term British goal.
Edmund Burke in the 1790’s favoured a Commonwealth of Europe.
Castlereagh worked for a Concert of Europe, with regular Summit meetings like the EU now has, after the end of the Napoleonic Wars.
Winston Churchill, in 1930,advocated a United States of Europe.
These statesmen did not advocate these ideas out of some sort of dewy eyed sentimentalism. No, they had a hard headed appreciation of the fact that stability on the continent meant greater security for Britain, and they made their suggestions to achieve that end.

Now it is British voters, not British statesmen, who must decide what is best for Europe,

+ a Union with Britain on the inside, or
+ a fractured Union, which Britain has left of its own free will.

BREXIT COULD DOUBLE THE REGULATORY BURDEN

We hear much about EU Regulations and the burdens they impose. But even if Britain left the EU, it would still have regulations of its own on things like the environment, financial services and product safety.

In fact, to the extent that a Britain that had left the EU wanted to sell goods or services to Europe, it would have to comply with TWO sets of regulations,

+ British regulations for the British market, and
+ EU regulations for the EU market, including Ireland.

Arguably the duplicated post Brexit regulatory burden on British business would be greater than the present one.

A UK/EU TRADE DEAL COULD TAKE YEARS TO NEGOTIATE

Some believe that the UK could leave the EU, and then quickly negotiate a free trade agreement which would allow British firms to go on selling in Ireland and the other EU countries.
I am sure an agreement of some kind could eventually be worked out, but it would not be quick.
Switzerland negotiated trade agreements with the EU, but that took 9 years.
Canada negotiated a Free Trade agreement too, but that took 7 years.
The British Agreement would be much more complicated than either of these, because it would involve new issues like financial services, and freedom of movement ,and access to health services, for example for Britons in Spain. It would have to cover agriculture.
Even with maximum goodwill from the European Commission, a post Brexit EU trade agreement with Britain would become prey to the domestic politics of the 27 remaining EU countries, each of whom would have their own axes to grind.
There would be a lot of uncertainty, over a long period.

STAY IN, AND MAKE EU BETTER

I believe British people should accept that entities like the EU, which provide a structure, within which the forces of globalisation, can be governed politically are essential, if the prosperity that flows from globalisation is to be shared fairly.
Rather than leave, Britons should consider how they can make the EU better than it is, and there is plenty of scope for that.

Speech by John Bruton, former Taoiseach of Ireland, in Stonyhurst College, near Clitheroe in
Lancashire on Sunday 29 May at 5pm

THE UK VOTES TO LEAVE………WHAT HAPPENS THEN?

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Paper prepared by John Bruton, former Taoiseach, on what would happen if the UK votes to leave the EU, the procedures and options available, and the implications for Ireland , the European Union and the UK itself.  

Next June the people of the UK may vote to leave the European Union. At the moment, a narrow majority favours remaining in the EU, but a large group are undecided. That group could swing towards a “leave” position, for a variety of reasons, including what might be temporary EU problems with refugees. However temporary the reasons might be, a decision to leave, once made, would be politically irreversible.

So it would be wise for Ireland to give thought now to how it might react to a decision by UK voters to leave the EU , and how it would play its hand in the subsequent negotiations. A number of scenarios will arise and Ireland needs to identify its red lines in each one of these.

THE NEGOTIATIONS COULD ONLY TAKE 21 MONTHS

The negotiation of a UK withdrawal from the EU will be done under Article 50 of the Lisbon Treaty. It will have to be a quick negotiation because Article 50 contains a two year time limit. In practice the negotiation of withdrawal arrangements will all have to be finished in about 21 months.

From the date that the UK Prime Minister informs the European Council of his/ her decision to implement the referendum decision, the two year time limit starts to run. Assuming a June 2016 Referendum, I calculate the Withdrawal Treaty would have to been negotiated, ratified, and brought into force by July 2018.

So the negotiations themselves between the EU side and the UK side would probably have to be finished at latest by April 2018, to allow time for parliamentary ratifications.

In the event that no agreement had been reached within the deadline, the EU Treaties “would cease to apply” to the UK. The UK would simply be out of the EU, without even a trade agreement.

This would be exceptionally disruptive of the UK economy, and of some, but not all, EU states’ economies. It would be particularly bad for Ireland. Our exports to the UK would be at risk, and the border would be deepened with incalculable consequences.

UNANIMITY OF ALL EU STATES NEED TO EXTEND THE TWO YEAR LIMIT

The two year limit could be extended, but only with the consent of all 27 members of the EU. If the negotiations had become contentious, or if the UK demands bore heavily against the interests of one or two states, one could see the required unanimous consent for an extension of negotiating time being withheld.

This risk of a single refusal to extend time for negotiation, adversely affects the dynamics of the negotiation, from a UK point of view, because the UK has more to lose from failure. It is not inconceivable that a populist government in a member state might hold a time extension for the UK hostage to obtain some other unrelated matter, such as debt relief. A European Parliament in election year could also be a source of uncertainty.

While a time extension would require unanimity, the actual negotiation of the terms of withdrawal would need a “Qualified Majority” within the European Council.

NO GUARANTEE OF PROTECTION OF IRISH INTERESTS IN WITHDRAWAL TREATY

That means that the terms of the Withdrawal Treaty would need to support of 72% of the 27 EU governments, collectively representing at least 65% of the total EU population. Ireland, on its own, could not block a Withdrawal Treaty that contained terms that were against Irish interests. Nor could Ireland guarantee it would be agreed on terms that would adequately protect Ireland’s interests. For example, Ireland could not necessarily prevent passport controls or customs posts on the border in Ireland.

While 72% of EU member state governments must agree to the Treaty terms, 100% of the 27 national parliaments must do so, and ratification could become entangled in General Elections in some states in the interim.

While our fellow EU member states will undoubtedly recognise the Ireland will suffer more than any other EU state from a UK withdrawal, that does not guarantee that Irish interests will be taken into account in all cases. Quid pro Quo will apply, and that could cause difficulties on vital Irish interests on EU issues that have little direct bearing on the UK Withdrawal as such.

Given the short time involved, the UK will not have the option of pursuing a relaxed post referendum exploration of different types of external association with the EU. It will probably have to decide at the outset what form of relationship it is seeking. It will have to choose among options that do not require the EU itself to change its Treaties.

The options were well described in a recent paper by Jean Claude Piris, former legal advisor to the European Council.

OPTION ONE…..UK JOINS THE EUROPEAN ECONOMIC AREA

The simplest would be to join the European Economic Area (EEA), while leaving the EU itself. The EEA allows Iceland, Liechstenstein and Norway to take part in the EU Single Market, but without being in the EU Agricultural, Fisheries, Judicial and Foreign Policies.

In the EEA, the UK would still have to contribute to the EU budget, to apply EU Single Market rules without having the say it now has in them, and to allow free movement of EU migrants to work in the UK on the same terms as locals.

Ireland’s problem with this option would be the departure of the UK from the EU Common Agricultural Policy which would raise issues of fair competitive access for Irish farm produce to the UK market. Management of Atlantic Fisheries would also become more contentious.

OPTION TWO……THE SWISS APPROACH

Less simple, would be for the UK to seek to make tailor made agreements with the EU, like Switzerland has. This negotiation would be a very complex process where tradeoffs would have to be sought between different sectors and national interests. The Swiss model has not worked well from an EU point of view, and one could expect EU negotiators to take an exceptionally tough line if this is what the UK seeks. The issue of access to the UK labour market for EU citizens would certainly be a demand from the EU side in such a negotiation.

In practice, if not in theory, the UK would have to implement EU law in all the areas for which it sought access to the EU market. This would be very problematic from the point of view of the financial services exports from London to Europe.

Once such a deal had been concluded, the EU side would be under pressure to tilt its own internal rules to favour financial service providers in the EU itself. If a system of mutual support and mutual supervision of financial service providers existed within the EU, and the UK was not part of that, there would then be valid grounds for objecting to UK financial service providers benefitting from a market they were not supporting on the same basis as EU providers.

This could hurt London, and Dublin could be a beneficiary. Outside the EU, the UK could do little to stop this. The European Banking Authority would have to leave London and there would be a good case for relocating it in Dublin.

OPTION THREE……A CANADA STYLE AGREEMENT WITH THE EU

Another option would be for UK just to seek a trade agreement with the EU, like Canada has. This option is favoured by some of those who want the UK to leave the EU, so it needs to be studied.

The first thing to say about this is that it would have to be negotiated within the two year time limit applying to a Withdrawal Treaty under Article 50, and would presumably have to be part of the Withdrawal Treaty. The existing Canada Agreement took 6 years to negotiate and dealt with a much less complex relationship than that between the UK and the rest of Europe. It is very hard to see how all this could be done in the time frame. The European Parliament would actively involve itself in the details. The UK would be excluded from the European council discussions on the topic.

A Canada type agreement would not necessarily mean continuing tariff free access to the EU for all UK goods. Some tariffs remain on some Canadian goods for the time being.

It is unlikely that a trade agreement like this, or even a Customs Union of the kind Turkey has with the EU, would allow the UK access to the EU financial services market and financial services are one of the UK’s biggest exports.

It is clear that under a Canada style agreement, the UK would have to comply with EU rules on any goods or services it wanted to export to Ireland or to any other EU member state. The UK would have no say in the framing of these rules, but it would still be bound by them.

Of course, the UK would be free to make its own rules for goods and services sold within the UK, but the downside of that would be that UK firms would then have to operate under two different rule books, one for the UK and another for the EU, thereby adding to their costs and damaging their competitiveness.

Once a Canada style agreement had been made, the UK would be out of the EU and would have no control over any further rules on new topics that the EU might need to make.

The Canada agreement is clear that it does not restrict the EU making “new laws in areas of interest” to it.

If the Canada model was followed there would be a Regulatory Cooperation Forum to cover this sort of thing. In the Canadian model, this Forum would allow

  • “exchange of information and experiences”,
  • “only provide suggestions and make no rules” and
  • “not have decision making powers”.

In other words the UK would be in a worse position than it is as a voting member of the EU.

If , after the UK had withdrawn, the EU deepened its service market further, allowing new access rights across border for service providers within the EU, the UK would miss out on this and would have to negotiate access for its service providers on a case by case basis.

The rights of the 1.8 million UK citizens now living in EU countries would also be less secure. UK citizens, living in Ireland or the continent, would enjoy only what Canadians enjoy.

WHAT WOULD HAPPEN TO EXISTING EU TRADE DEALS, AND TO EU LAWS NOW ON THE UK STATUTE BOOK?

Furthermore, the UK would have to start from scratch negotiating trade agreements with countries all over the world, to replace the trade agreements it now has with all those same countries as a member of the EU.

The UK Parliament would certainly be busy as well, in that it would have to pass new UK laws to replace all the EU regulations that are now part of UK law.

The only alternative to this would be for the UK to decide to leave all the “acquis” of EU rules and regulations, which are now supposedly so objectionable, on the UK statute book, as they are, for a long time to come.

One proponent of UK exit from the EU, Lord Lamont, admitted, in a debate with me recently, that this is what they would have to do.

Leaving the EU, only to leave EU rules on the UK statute book, seems like a lot of trouble to achieve very little!

A SECOND REFERENDUM?

There would be no second referendum on the final terms of any Withdrawal Treaty.

This has been made clear by Chancellor Osborne. That has to be his position because, if there was to be such a referendum, the choice would presumably be either to leave on the basis of the terms of withdrawal Treaty, or stay in on the basis of the EU membership exactly as it is today.

If such a second referendum was formally in prospect, it is hard to see that the EU side would have any incentive at all to offer the UK any concessions at in the Withdrawal Treaty negotiations. They would be mad to do so, because all the concessions would achieve, would be to make withdrawal more attractive.

CONCLUSION

I believe that the architects of the UK’s renegotiation/referendum strategy did not adequately consider how hazardous the voyage is, on which they have so casually embarked. They may have overestimated the EU’s political capacity to devise yet another special deal for the UK.

Ireland, for its part, will have to adopt a very tough, deliberate, and multifaceted negotiating strategy, as long as this avoidable uncertainty prevails.

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