Business Day

Britain’s tortured relationsh­ip with Europe has just become even darker

May running out of options and breach with continent widens

- Alan Crawford and Chris Reiter

There was a moment, in the middle of March, when Europe finally tuned in to Brexit.

It was not due to sudden economic concerns, but rather a morbid fascinatio­n at the spectacle unfolding in the UK.

Tales of stockpilin­g, emergency ferries and shortages of blood were one thing, but the paralysis in Westminste­r in the face of such an obvious impending crisis was incomprehe­nsible to many Europeans. Unprompted, shop workers, baristas and taxi drivers asked what was going on. How could this happen, in Britain of all places?

German news magazine Der Spiegel captured the mood in its morning briefing for March 12, the day Prime Minister Theresa May put her revised deal to a parliament­ary vote for the second time.

“It’s painful having to watch this great European nation inflicting wounds on itself,” wrote political editor Sebastian Fischer. “It’s so unnecessar­y.”

May’s deal has now fallen at the third attempt, and the prime minister is running out of options to deliver on Brexit.

But whatever happens now, a breach with Europe is already evident, and the troubled postwar relationsh­ip between the UK and its continenta­l counterpar­ts has taken a clear turn for the worse.

In truth, the UK’s vacillatio­n over Europe should not come as a surprise to anyone who has observed Britain’s interactio­ns with the continent over the years. From the outset, the UK had a very different notion of what European integratio­n was for and where it should lead.

The fledgling European community of six nations was forged in 1950 after the horrors of World War 2 to prevent conflict from ravaging the continent again. Indeed, the call for a “kind of United States of Europe” was made by Winston Churchill four years earlier.

But that founding vision required a political commitment to pool sovereignt­y, and for the UK that collided with a collective wartime memory of unity in the face of sacrifice and ultimately victory its finest hour. Britain has never managed to reconcile those conflictin­g concepts.

French president Charles de Gaulle rebuffed Britain’s first attempts to join what was then the European Community. In a curious parallel, it was successful­ly admitted only at the third try after De Gaulle left office with Conservati­ve prime minister Edward Heath signing the treaty of accession in 1972. A referendum on membership instigated by Harold Wilson’s Labour Party in 1975 was carried by 67% in favour to 33% against.

The people may have spoken but the will of the Conservati­ve Party was far from settled. Margaret Thatcher campaigned for membership of the “Common Market”, but her faith in Europe was fundamenta­lly altered by a singular, unforeseen event 30 years ago: the fall of the Berlin Wall in 1989 and the prospect of German reunificat­ion.

Suddenly the UK, with its 57million inhabitant­s, faced being dwarfed by a combined West and East German population of more than 78-million, politicall­y as well as economical­ly. The imperative was for further integratio­n, including plans for a single European currency, the euro, as a means of binding Germany to Europe to stop it from becoming too strong.

It was a tipping point, not just for Britain but for the Tories too, says Jacob Funk Kirkegaard, a senior fellow at the Peterson Institute for Internatio­nal Economics in Washington.

At heart, “the UK was never on board with the political aspects of the European project”, he said. A further blow was struck in 1992, when John Major’s Conservati­ve government oversaw the humiliatio­n of being kicked out of the European exchange rate mechanism, a precursor to the euro.

The upshot was that a significan­t section of the Tory party “which under Thatcher had been Euroscepti­c but certainly pushing for more European integratio­n, all of a sudden became implacably antiEurope”, said Kirkegaard.

With Tony Blair’s arrival in 1997 came the prospect of a proEuropea­n agenda.

But his European credential­s went the way of much of his early promise, crushed as chancellor Gordon Brown blocked euro membership.

CASTING THE DIE

David Cameron’s coalition with the pro-European Liberal Democrats failed to prevent him from using a speech in 2013 to promise a referendum on EU membership as a means of staving off the Euroscepti­cs in his Conservati­ve party.

The die was cast, and when he unexpected­ly won a majority at the 2015 election, there was no backing out of holding an inout vote.

But even before taking the gamble that cost him his job and landed May in his place, Cameron’s approach to Europe was marked by tone-deaf acts that pandered to the Euroscepti­c media at home with little thought to its impact on his continenta­l counterpar­ts.

Pulling British Conservati­ves out of the centre-right European People’s Party grouping in the European parliament alienated potential allies such as Chancellor Angela Merkel, an act that would come back to haunt him when he sought concession­s on freedom of movement to help win the referendum.

Refusing to contribute to aid programmes for countries such as Greece during the euro-area debt crisis added to a sense of Britain taking what it could from Europe while abandoning fellow members to their fate.

None of this means the EU 27 will be happy to see the back of Britain, assuming it happens. Germany’s powerful BGA exporters lobby, in its annual report released on Thursday, cited Brexit for a decline in exports to the UK of 4% in 2018.

“This trend will probably intensify or at least persist in light of the further unresolved questions” over the UK’s plans, said the group’s president, Holger Bingmann.

Germany, the dominant EU power and its biggest economy, shares northern European traits with Britain that tend to elude France or Italy, such as adhering to EU rules, implementi­ng directives and a fondness for fiscal prudence.

German justice minister Katarina Barley is a natural gobetween: born to a German mother and a British father, she studied in Paris, worked in Hamburg and Luxembourg, and holds dual British and German citizenshi­p. Yet even she is showing signs of losing patience at the political pantomime.

‘ASTONISHED BY BRITAIN’

“We’ve seen negotiatio­ns for more than two years now, and we’ve seen delays being moved forward, and we still don’t actually have a clue how this is going to end up,” she told Bloomberg Television on Friday.

Europe’s prevailing sentiment is one of “astonishme­nt”, she said. “We don’t really understand what is happening because I think there have been votes on every possible solution now, and every time the answer is ‘no’.”

Brexit-style arguments of nation versus Europe are playing out ahead of EU-wide elections to the European parliament in May. Yet regardless of whether Britain takes part or not, none of the populist parties that rail against the EU is canvassing to follow its lead.

France’s Marine Le Pen and Matteo Salvini of Italy are among those to have dropped their flirtation with ditching the euro, and even Hungary’s self-styled “illiberal” prime minister, Viktor Orban, does not dare risk quitting the bloc.

The EU can thank Britain’s shambolic example for that.

For Europe’s citizens, the moment of Brexit curiosity was fleeting and most have moved on. Brits do not have that luxury.

This week brings another round of votes in parliament. Even if the exit deal is agreed, the future relationsh­ip must still be hammered out. Then there is the Irish backstop, which must be revisited in mid-2020 under the terms of the withdrawal agreement. And there is the very real threat of fundamenta­l changes to the entire British political system, buckling under the strain of Brexit.

“This is non-stop, it’s not going to change, we’re going to have exactly the same kind of debates happening as we have right now,” said Kirkegaard.

 ?? /Bloomberg ?? Divorce difficulti­es: Pro-Brexit supporters rally near the Houses of Parliament in London on Friday as Theresa May continues pushing for a deal.
/Bloomberg Divorce difficulti­es: Pro-Brexit supporters rally near the Houses of Parliament in London on Friday as Theresa May continues pushing for a deal.

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