Remainers legitimately want a 2nd referendum, but really, is there any way to get it without an election victory for parties advocating it? Given that this Commons opposes it? And an extension has to be for something, not another tortuous process leading to yet another extension.
An election justifies the extension. It will also (by definition) help to legitimize whatever happens next. If the Tories get a majority they will presumably pass this withdrawal agreement, which is what Johnson wants to do. And if the Tories win, that'll be a legitimate outcome.
A no deal Brexit will be avoided which is the greatest danger right now. Of course it is always possible that after transition the EU and UK will revert to a WTO trading relationship but there is nothing anyone can do to rule that possibility out completely...
...given that trade negotiations will only begin after Brexit, that time will be short, and that the EU will be demanding extensive level playing field guarantees in exchange for even a plain vanilla zero tariff zero quota deal. Let alone something deeper.
It's going to be a very tough conversation whoever is in charge in the UK and there are no guarantees of success. For anyone.
If the Lib Dems and Labour get their collective act together and get a majority, they can have a changed political declaration pointing towards a closer political relationship (I am sure the EU would agree to that), or a second referendum, or both.
And presumably they would feel confident that in that situation they would be able to avert a post-transition WTO relationship between the EU and WTO. Or at least they would presumably feel that it was more likely that they could avert it, than that the Tories would.
If the argument is that an election is not to be desired because the result will be wrong...that really isn't a very good argument, nor will it strike most European political leaders as a convincing one. The EU being an association of democratic countries and all...
At the end of the day the only way that Remainers will achieve their ends is by convincing the UK electorate.
And if they get their act together, and cooperate with each other, why should they not be capable of doing that?
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