Tag Archives: Brexit

Blue sky thinking?








In a recent report, The Economic Impact of an All Island Economy, the journalist Paul Gosling argues the case for unity. He summarised his point of view in an article in the Belfast Telegraph; 22 February, “Unionists are facing a perfect storm of Brexit and demographic shift”.

His arguments are in some ways strange.

Brexit summary, before the next round….






Policy Exchange’s Chief Economic Adviser Dr Graham Gudgin gave evidence to the House of Lords EU Select Committee on UK-Irish relations after Brexit. Dr Gudgin argued that electronic solutions should be prioritised for the border and argued that securing a free trade agreement with the EU must be a priority.

This is an extract of his presentation; a better version is on the Parliament live site (the embed output quality isn’t great):

The full hearing of evidence can be found at Parliamentlive.TV

The written submission to the EU Committee is below:

The DUP prioritised The Union. Unionists do that.






The whole point of the DUP is to safeguard Northern Ireland’s position within the UK. As unionists, they believe in the nation state and see the UK as the rock on which our prosperity, security and identity is built.

It is unsurprising that these views have lead them into a strongly pro-Brexit stance, though even then there is a pragmatism to their politics that is sometimes missed. The government would have known what the DUP’s red lines were before the latest round of talks hit the buffers.

The Irish government denies the charge that it asked that Monday’s Brexit paper be kept from the DUP, but the reality is that the DUP had received only an emollient verbal briefing and had been asking for days to see a paper. It was passed to them only as Theresa May was going to lunch in Brussels; the frantic phone calls that followed stopped the deal in its tracks.

The issue of the Irish border is important, but not as challenging as the Irish government has made it.

That was the deal that wasn’t.






What might have been the economic impact on Northern Ireland if the Prime Minister had in fact accepted the deal which was proposed by Brussels on the morning of Monday 4 December? Here are some key points:

  1. In order to ensure regulations continued to be aligned between Northern Ireland and the EU notwithstanding any changes in the rest of the UK, this deal implied a substantial increase in the extent of devolution to Northern Ireland.

That begs several questions. Even if we assume devolution can be restored, would it be sensible to give Stormont extra powers when we’ve seen just how erratic the progress of devolved government has been in its almost 20 years 1999-2017?

  1. If regulatory harmony between Northern Ireland and the Republic of Ireland (plus the other 26 EU members) is obtained at the price of opening up a regulatory gap between Northern Ireland and Great Britain that will imply a very large economic cost.

A sensible deal on the Northern Ireland border is very achievable






Brussels and Dublin should stop playing games.

Hell hath no fury like a Commission scorned.

Since the UK is breaking up the European Commission’s cherished Union, the Commission retaliates by supporting those wishing to break up the UK.

The first attempt was Jean-Claude Juncker’s wooing of Nicola Sturgeon when she visited Brussels to drum up support for Scottish independence. The hugs and kisses to camera signified EU support for her efforts, but it all came to nought as falling oil prices rendered an independent Scotland financially unviable.

The second attempt will be equally futile but could cause trouble along the way. This is the suggestion in a Commission document ‘Dialogue on Ireland/Northern Ireland’, leaked last week, that ‘it is essential that the UK commits to avoiding a hard border by remaining part of the EU customs union, and continues to abide by the rules of the EU single market and customs union’.

Mutual Interest






The Legatum Institute has taken a look at maximizing the UK and Republic of Ireland mututal interests in trade opportunities around the world, post-Brexit: depending on the output of current UK/EU negotiations.

EU’s position on ‘Ireland’ is neither coherent nor constructive






Last month the government published its Brexit position paper on ‘Northern Ireland and Ireland’ (by which it meant the Irish Republic). It was hardly a scintillating document, but at least it tried to imagine how a ‘seamless and frictionless’ border might work in practice.

In response, the EU Commission issued a set of truculent and unhelpful ‘Guiding principles for the dialogue on Ireland / Northern Ireland’.

All at sea.






Professor James Anderson in the Belfast Telegraph “Brexiteers are holding NI to ransom” provides an interesting viewpoint on what he sees as the menu of options relating to Northern Ireland and GB trade with the Republic of Ireland post-Brexit. However, his consideration appears to be only partial, and incomplete.

How Bad Will Brexit Really Be For The UK?







The great majority of the economic forecasts have concluded that Brexit will damage the UK economy. In the case of ‘no deal’ between the UK and the EU, the majority view is that the loss of GDP could be severe.

The UK Treasury, the OECD and the London School of Economics’ Centre for Economic Policy (CEP) all agreed, in reports published during the referendum campaign, that with no deal the loss of GDP by 2030 would be in the range of 7-10%.

A free-trade agreement (FTA) would be little better. Much of this was ignored by ‘Leave’ voters in the Referendum, who had long since lost all confidence in economic forecasts.

That the short-term forecasts of these forecasting bodies were largely wrong strengthened this pessimism, but the long-term projections remain influential and form an important context for the Brexit negotiations now underway between the UK and EU.

These long-term forecasts, that leaving the EU with no deal on trade would be economically disastrous, undermine the UK’s optimal negotiating strategy.

Opportunity knocks





We don’t yet know how Brexit will affect Northern Ireland exactly, but the referendum result certainly revived the nationalist trope that Irish unity is ‘inevitable’.

The Republic’s national parliament recently published plans for a forum “to achieve the peaceful reunification of Ireland”, Sinn Fein blithely assure unionists that the “British identity” will be protected in a thirty-two county state and newspaper columnists rush to tell readers that the fourth green field will soon “bloom again”. One particularly excitable author, Kevin Meagher, a former special adviser to Shaun Woodward, (remind me again why unionists didn’t trust that former secretary of state), even called his book “A United Ireland: Why unification is inevitable”.

In response, unionists have challenged nationalism’s “self-regarding, single certainty” in a series of astute articles.