Profile picture
, 7 tweets, 3 min read
My Authors
Read all threads
I fear this is a realistic assessment of the likelihood of a UK/EU deal from the well-placed @JGForsyth. The EU has moved on state aid but the UK has not reciprocated. More likely than not that we leave without a deal. thetimes.co.uk/article/johnso…
The thinking is that we need flexibility over state aid not to support existing industries like car-manufacturing but to build are own tech sector.
But without a robust state aid regime how does the Government resist lots of industries demanding subsidies? And...
... how confident are we that the Govt would be successful in picking winners in the tech sector? (Tbh, I’d say ‘not very’).
And is the Govt really willing to say to car workers etc ‘sorry you’ve lost your jobs but it’s a price worth paying so that we can help tech companies?’
Making state aid a deal breaker with the EU is an extraordinary departure for a Conservative Government.

Here’s my piece from 1 August on what the PM’s attitude to state aid tells us about the future direction of the Conservative Party.
conservativehome.com/thecolumnists/…
And in the referendum campaign Boris Johnson praised EU officials for their ‘fight against state aid’.
telegraph.co.uk/opinion/2016/0…
As for the argument apparently made by some in No 10 that after a few months without a deal, the EU will give us what we want?
This from the same people who said we’d easily get a deal. Or we would if we threatened to walk away.
Consistently delusional.
.@JGForsyth says that the PM quips that “only 3 people in government agree with me” on how purist an approach to Brexit the UK should take. In which case, it is the responsibility of the Cabinet to assert itself.
Missing some Tweet in this thread? You can try to force a refresh.

Keep Current with David Gauke

Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

Twitter may remove this content at anytime, convert it as a PDF, save and print for later use!

Try unrolling a thread yourself!

how to unroll video

1) Follow Thread Reader App on Twitter so you can easily mention us!

2) Go to a Twitter thread (series of Tweets by the same owner) and mention us with a keyword "unroll" @threadreaderapp unroll

You can practice here first or read more on our help page!

More from @DavidGauke see all

Profile picture
David Gauke
@DavidGauke
Interesting piece by @ShippersUnbound on the attitude inside No 10 to a no deal Brexit. Rings true and highlights the reality that the risk of a no deal Brexit is under-priced. thetimes.co.uk/article/covid-…
Some have argued that the Government is more likely to agree to a deal because they’re vulnerable to the accusation that not getting a deal would constitute incompetence. But I think most of their supporters will buy the argument that it’s the EU’s fault.
I don’t think the UK govt is bluffing when it says it’s prepared to walk away without a deal. But I don’t think the EU position is as a consequence of misunderstanding the UK position. The EU won’t give UK good access to its markets without protection from unfair competition.
Read 5 tweets
Profile picture
David Gauke
@DavidGauke
Four things we know about the EU/UK negotiations.
1. An agreement will require the UK to propose a credible state aid regime.
2. There’s no sign of such a proposal.
3. If a deal can’t be reached, the Govt will blame the EU.
4. Brexiteers will accept the Govt’s explanation.
A deal is still possible but the risk of no deal is high and has been consistently under-estimated by most commentators. At no point has the Govt ever accepted what is necessary to reach an agreement.
Some argue that the PM was willing to be flexible to get a deal last October (by agreeing to create a border in the Irish Sea). But that was because it was the only way of leaving the EU (because of the Benn-Burt Act) not a fear of no deal. No such constraint now.
Read 3 tweets
Profile picture
David Gauke
@DavidGauke
My latest piece on @ConHome on state aid, Brexit and the changing nature of the Conservative Party. To get a deal with the EU, at the very least the UK will need a robust & independent state aid regime. But is that what the red wall voters will want? /1 conservativehome.com/thecolumnists/…
As @pmdfoster reported this week, Dominic Cummings is leading the push for a minimalist state aid regime, saying once you have left the EU “you should just do whatever you want”. And red wall voters would favour an interventionist approach. /2
ft.com/content/e29430…
Backing national champions & supporting businesses in the red wall might be popular, but it risks wasting taxpayers money & distorting the allocation of resources. Rishi Sunak should be making the case forcefully for a robust state aid regime. /3
Read 6 tweets

Embed code for your website

×
Follow Us on Twitter!

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3.00/month or $30.00/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!