At present there are only three options available for Brexit. These are the approval of a changed Withdrawal Agreement, a No-Deal Brexit and an extension of Article 50.The EU is insisting that the Withdrawal Agreement cannot be changed. The EU always plays hard ball in negotiations so no-one is actually believing this position.A No-Deal Brexit is an essential option if the UK is to respond adequately to the EU negotiating position. It is difficult to understand why MPs who support the Single Market or Customs Union believe that No-Deal should be taken off the table because that would immediately remove any power from the UK negotiating team and allow the EU to dictate terms. Fortunately Yvette Cooper's amendment to forbid a No-Deal Brexit was defeated in Parliament.An extension of
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The EU is insisting that the Withdrawal Agreement cannot be changed. The EU always plays hard ball in negotiations so no-one is actually believing this position.
A No-Deal Brexit is an essential option if the UK is to respond adequately to the EU negotiating position. It is difficult to understand why MPs who support the Single Market or Customs Union believe that No-Deal should be taken off the table because that would immediately remove any power from the UK negotiating team and allow the EU to dictate terms. Fortunately Yvette Cooper's amendment to forbid a No-Deal Brexit was defeated in Parliament.
An extension of Article 50 has been discussed widely. It is the preferred option of Labour and Remain MPs. Labour believe it will keep the Tories on the political rack until they self destruct or call an election, Remain MPs believe that while the UK remains a member of the EU there is a chance of the Referendum result being overturned. As the Parliamentary Research Briefing shows, an extension of Article 50 would require approval from all 27 EU States and is by no means a foregone conclusion. Several EU Leaders have voiced concerns about the uncertainty of extending Article 50. The Lithuanian Prime Minister was particularly vocal in opposition to extending Article 50.
So what is going to happen? I believe that the EU will not extend Article 50 unless the UK has a definite plan. I also think that the rational approach for Theresa May is to simply end all the in-fighting and division by declaring Brexit on 29th of May. Once the UK is out of the EU there are no Remainers or Leavers. The issue is closed.
Remain MPs always prefix "No Deal" with words like "disastrous" but the Treasury and Bank of England predictions for no-deal were brazenly fixed by including in the small print massive reductions in UK population growth after No Deal. The Bank also stated openly that its worst case no-deal predictions were for the absolutely worst case imaginable with no measures of any sort being taken to ameliorate any potential dislocations. Remain MPs have been using these imaginary figures as a true account of the results of No Deal. The truth about No Deal is that it will be slightly painful but nowhere near as bad as the 2008 bank collapse and the country will recover within a year or so with the Referendum result respected.
As it turns out, the uncertainty over Brexit is damaging the Labour Party almost as much as the Conservatives. The departure of seven Labour MPs (Ann Coffey, Angela Smith, Chris Leslie, Mike Gapes, Luciana Berger, Gavin Shuker and Chuka Umunna) to form the New Independent Group opens up a split in Labour's ranks that may grow. Three Tories (Anna Soubry, Sarah Wollaston and Heidi Allen) have also now defected to the NIG. The NIG is composed of individuals who have been supported by the European Movement and Big Business. See Who is paying for Remain and the "Peoples Vote".
What is particularly puzzling about all of this debate over No Deal is that the Treasury and Bank of England predict that the growth rate of the UK economy after 2021 will be almost identical whether there is a Deal, the UK remains in the EU or there is a disorderly No Deal. The graph below shows GDP growth % but the GDP per head growth is actually better in the No Deal scenarios than in the Remain scenario because of the vast decrease in population growth predicted by the Bank.