OK this is how I think Brexit endgame really playing out right now.
Some of the following is based on reported public facts, some on chatter and some merely personal speculation.
A (small) thread
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Boris Johnson is desperate.
He knows his disastrous Covid policies + global recession + no deal would finish UK off.
But he also knows to backtrack now finishes him off, makes UK look ridiculous & ends Conservative/UK reputation for decades.
He can do neither.
So what next?
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Johnson plays the only card he has left - “the stability gambit”.
He appeals to Merkel desire for european stability, green new deal & security. The 2 options above both risk UK imploding - but if Merkel could help choreograph a “fake victory” for UK he can sell to UKvoters.
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Johnson is prepared to compromise and hide concessions in longterm committees, small print etc but he needs something leave voters & Tory voters can wave a Union flag from - I think this will be fish (altho it’s possible something else could work)
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For this to work “the choreography of the deal” must be agreed Before entering “the negotiating tunnel”
The EU must be certain that Johnson serious about concessions & realism on EU deal.
So how will this work?
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Like most things it’ll come down to France & Germany. That’s why Macron talking tough. Macron doesn’t want France to pay the price & will act the bad cop to Merkels consensus cop.
If it’s fish - then Macron will insist on France being compensated - this can be done thru EU
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Germany who’s had a good Covid & whos state finances look healthy will be tempted, as so often in the past, to smooth French/& EU feathers via cash into EU projects to ensure that any EU-UK deal goes through.
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Germany won’t do this because it’s desperate for UK car sales - it’ll do this because it doesn’t want UK to collapse.
We’re the wastrel family member the rest will protect out of enlightened self interest.
But what can UK agree to?
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Answer: I think forms of status quo arrangements + agreement to continue discreetly negotiating beyond January 1st....
...but ONLY if UK signs up to EU rules where applied.
Some of this can be hidden, some can be caveated upon UK good behaviour.
But one thing this isn’t...
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If this really does happen - one thing it won’t be is the Brexit promised.
It will be a disguised concessions with some flag waving around fish - a minuscule part of economy.
Will this happen...?
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Will the EU-UK deal happen?
I can’t answer that..& here’s why:
The only person who knows if the U.K. govt can agree to EU concessions in the next weeks is Boris Johnson...
....and he hasn’t got a f*cking clue what the hell he’s doing.
Supreme Leader Laurence Fox refuses to accept Scottish independence vote as he ‘reluctantly’ agrees to parliament‘s decision to delay the general election as a mark of respect for “victory over the Europeans” in WWII.
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Finance Minister (with special Responsibility for the fashion industry) Sir Darren Grimes introduces a tax on people who finished their degrees as he announces major clampdown on “metropolitans” as part of tax raising measures to subsidise new UK-produced “Farage” car model.
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Incoming BBC Chairman Julia Hartley-Brewer celebrates her promotion from OfCom office by commissioning new 24-part drama series: “Brexit: how we won the war”.
The series is entirely UK financed as global take-up slow - but costs kept low as students requisitioned for roles.
There was actually a way that Coronavirus could have helped Boris Johnson....and perhaps even partially hid the damage of Brexit - at least in the short term...
...but as I’ve been saying for months now that moment has passed.
A thread.
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Right at the beginning of COVID Johnson was remarkably bullish about the issue. And saw no reason why it would impact Brexit.
Why?
4 reasons....
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As EU was hit 1st, GB an island & Tory views of Europeans as anti-risk, anti-science..UK govt assumed UK would suffer the least damage of major EU states.
Such a rosy view also led to idea any COVID damage to economy could hide Brexit costs as UK economy would outperform EU.
Reports from Germany indicate Boris Johnson appealed to “western civilization solidarity” in his calls with Angela Merkel & senior German officials as part of his pleas for a better EU-UK deal.
Johnson said to have raised green & defence issues as “emotional package”.
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Boris Johnson said to have offered Merkel & German govt “full support” on current & future environmental issues as part of Trade deal plea package.
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Likely that Germany would consider “mini-deals” to ease Brexit even without a “grand bargain” trade deal.
Increasing confidence that “complete no deal” can be avoided. And dialogue will continue “longer than originally planned”.
In a few months it will be confirmed that going into Brexit year UK govt debt will exceed 100% of UK GDP - for the 1st time since the 1960s when the UK & global economy where swinging along nicely...
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As interest rates are low the UK govt will be faced with a choice 1. Borrow more 2. Raise taxes 3. Spend less
Nr. 3 will be impossible as it now appears UK is entering COVID 2nd wave in worse shape than rest of EU.
So then what...?
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Tax raising also difficult for a Tory govt faced with low growth & a restless No-longer-loyal-rightwing-media.
So my prediction
UK will spend next 2 years attempting to reflate economy on borrowed money.
Reports out of Brussels indicate that the EU will take legal action against the United Kingdom this week - and that a "letter of formal notice" has been already been agreed among EU legal representatives.
Earlier this year UK govt attempted a high-stakes gamble with UK car industry.
Little remarked upon outside the industry at the time - it was an attempt to "do" Brexit & save the jobs of car workers.
He just lost.
A Thread
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Absurd as this sounds - the UK govt agreed products - specifically car products - from Japan or South Korea would be stamped “Made in Britain” in a plan to save the UK car industry post Brexit.
The point was Nissan & Toyota - key Japanese car makers in UK - were to be safeguarded against Brexit.
He needed to do that as automotive sector worth £18bn to the UK economy & directly employing 168,000 people with hundreds of thousands more in supply, retail & servicing.