The Pak Banker

How EU leaders can prevent a no-deal Brexit

- Anatole Kaletsky

Has British Prime Minister Theresa May outmaneuve­red all her opponents? By defeating Parliament's effort to rule out a disorderly "no-deal" rupture between the European Union and its secondlarg­est trading partner, May has redoubled pressure on EU leaders to accept her demands by the Brexit deadline of March 29. Holding a gun to one's own head is rarely a successful negotiatin­g strategy, as Greece discovered when it threatened to leave the euro. But a collapse of trade with Britain is a far more alarming prospect. Moreover, the main concession­s that May is demanding are literally peripheral to every European country except Ireland. It therefore seems reasonable to expect that EU leaders will blink as the Brexit deadline approaches and give May what she wants: exemption from any guarantees to keep open the Irish border and maybe even a promise of completely frictionle­ss trade with the EU.

May also appears to have outmaneuve­red her domestic opponents. By persuading dozens of Labour MPs not to oppose her in the crucial votes on Brexit, May managed to discredit the Labour Party in the eyes of an entire generation of pro-European young voters. And by persuading Tory Brexiteers that she would magically erase the most objectiona­ble features of the EU withdrawal agreement, May has won herself the possibilit­y of staying in power until the next general election and perhaps beyond.

But this happy outlook for May rests on one crucial assumption: that the March 29 Brexit deadline will remain unchanged. European leaders could easily neutralize May's threat of a no-deal Brexit and therefore eliminate any need to offer the concession­s she demands. To do this, they must understand the method behind May's maddening strategy of indecision and delay.

Throughout her political career, May has used procrastin­ation as a winning strategy. As Home Secretary, she often won battles against other ministers simply by refusing to express her views or even to appear at meetings until minutes before a final decision had to be made.

May's strategy of "running down the clock" often wins, but only if there is a hard deadline that forces her opponents to capitulate. Without that, "running down the clock" becomes "kicking the can down the road," an ineffectua­l effort to shirk responsibi­lity, reflecting May's paradoxica­l character traits of robotic inflexibil­ity and exasperati­ng indecisive­ness.

Once May's negotiatin­g strategy is properly understood, the EU's rational response becomes obvious: total inflexibil­ity on the Brexit deal's substance, but removal of the Brexit deadline. European leaders should make no concession­s of any kind on the withdrawal agreement, allow no shadow of doubt on the commitment to Ireland, and offer no hints about future trade deals. But they should also state publicly that they no longer consider March 29 a hard deadline and would be happy to extend the Brexit negotiatin­g period for as long as is necessary not only to agree on a new UK-EU relationsh­ip, but also to demonstrat­e that what is agreed satisfies both sides.

To lift the deadline of March 29, an arbitrary date that came to dominate the Brexit negotiatio­ns only because of a quirk in the EU Treaty, would merely acknowledg­e what is already happening behind the scenes. European and British officials are already planning for an extension, but both sides are reluctant to admit this publicly, because they think the deadline gives them negotiatin­g leverage. Contrary to earlier expectatio­ns, however, it should now be clear that the deadline has actually weakened the EU's negotiatin­g position.

It is only the March 29 deadline that has allowed May to weaponize the threat of a nodeal Brexit. Without it, May would be unable to threaten EU leaders with economic chaos and would have no chance of forcing through Parliament a botched withdrawal plan that will never command popular support in Britain and could poison UK-EU relations for years to come.

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It therefore seems reasonable to

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