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OK, it can be avoided no more.
This is perhaps the most complex 🧵 on #Brexit I've ever attempted. But this issue really matters.
Business, possibly even lives, depend on getting this stuff right.
It is about the complexity of Brexit delay, and what to do about it.
1/25
If negotiations had gone to plan, it would have worked thus:
1️⃣ 🇬🇧&🇪🇺 agree a Deal, politically
2️⃣ That is then turned into a legally ratifiable text
3️⃣ Both sides then ratify - on 🇪🇺 side Member States and the EP, 🇬🇧 side the Houses of Parliament
4️⃣ Deal in force 1.1.2021
2/25
The problem: we do not have 1️⃣ yet.
And with just over 16 days to go - including 🌲 - we do not have time for 2️⃣ and 3️⃣ and hence no 4️⃣.
We *might* have time for 2️⃣ - and that could prove to be significant (see tweet 7 below), but definitely not 3️⃣ on 🇪🇺 side.
3/25
*Essential* problem: by having spent so long talking (I think 🇬🇧 tactic has been to run down the clock - https://t.co/8EJZAJZHqz ) the path to a normal ratification is now ⛔️.
Now ratification becomes harder - legally, politically, practically - with every passing hour.
4/25
The most obvious stumbling block is...
🥁🥁🥁
... the European Parliament!
Parliamentary sovereignty, eh? A topic for another time.
Anyway, the EP has said it will not vote on a Brexit Deal this
This is perhaps the most complex 🧵 on #Brexit I've ever attempted. But this issue really matters.
Business, possibly even lives, depend on getting this stuff right.
It is about the complexity of Brexit delay, and what to do about it.
1/25
If negotiations had gone to plan, it would have worked thus:
1️⃣ 🇬🇧&🇪🇺 agree a Deal, politically
2️⃣ That is then turned into a legally ratifiable text
3️⃣ Both sides then ratify - on 🇪🇺 side Member States and the EP, 🇬🇧 side the Houses of Parliament
4️⃣ Deal in force 1.1.2021
2/25
The problem: we do not have 1️⃣ yet.
And with just over 16 days to go - including 🌲 - we do not have time for 2️⃣ and 3️⃣ and hence no 4️⃣.
We *might* have time for 2️⃣ - and that could prove to be significant (see tweet 7 below), but definitely not 3️⃣ on 🇪🇺 side.
3/25
*Essential* problem: by having spent so long talking (I think 🇬🇧 tactic has been to run down the clock - https://t.co/8EJZAJZHqz ) the path to a normal ratification is now ⛔️.
Now ratification becomes harder - legally, politically, practically - with every passing hour.
4/25
The most obvious stumbling block is...
🥁🥁🥁
... the European Parliament!
Parliamentary sovereignty, eh? A topic for another time.
Anyway, the EP has said it will not vote on a Brexit Deal this
Pretty clear again speaking to Mep's they won't countenance debating or ratifying any EU-UK trade agreement before December 31st #Brexit
— Shona Murray (@ShonaMurray_) December 15, 2020
Mep's are pretty annoyed at the very suggestion that it would be provisionally applied and the ratification would be a simple rubber stamp.
A few thoughts on how Brexit is likely to affect the UK economy in 2021 - with the caveat that much remains uncertain 1/
Most important change on January 1st will be higher trade costs due to creation of UK-EU customs border plus restrictions on what services trade is allowed
Costs from regulatory divergence likely to be at least as important as border costs in the long run, but not immediately 2/
Expect disruption & delays at the border for the first few months
However, I do not anticipate shortages of essential goods, as imports can be expedited if needed, e.g. air freight, priority customs processing 3/
Delays will become shorter and more predictable as firms learn what paperwork is needed and customs capacity improves. Important for just-in-time supply chains where predictability is more important than speed 4/
Contrary to government claims, many costs will be permanent:
- Red tape, e.g. need for customs workers wastes resources & lowers productivity
wasting resources
- Tariffs (if no deal)
- Rules of origin (if deal)
- Lost market access for services
https://t.co/07wNehNn7z 5/
Most important change on January 1st will be higher trade costs due to creation of UK-EU customs border plus restrictions on what services trade is allowed
Costs from regulatory divergence likely to be at least as important as border costs in the long run, but not immediately 2/
Expect disruption & delays at the border for the first few months
However, I do not anticipate shortages of essential goods, as imports can be expedited if needed, e.g. air freight, priority customs processing 3/
Delays will become shorter and more predictable as firms learn what paperwork is needed and customs capacity improves. Important for just-in-time supply chains where predictability is more important than speed 4/
Contrary to government claims, many costs will be permanent:
- Red tape, e.g. need for customs workers wastes resources & lowers productivity
wasting resources
- Tariffs (if no deal)
- Rules of origin (if deal)
- Lost market access for services
https://t.co/07wNehNn7z 5/
Fwiw I get told that economics and process considerations (haulage, logistics, manufacturing etc) play limited role in #brexit inner circle decision-making. Belief it\u2019ll be messy but business will adjust. Q is more short term political embarrassment. 2/2
— Peter Foster (@pmdfoster) December 13, 2020
A quote from this excellent piece, neatly summarising a core impact of Brexit.
The Commission’s view, according to several sources, is that Brexit means existing distribution networks and supply chains are now defunct and will have to be replaced by other systems.
Of course, this was never written on the side of a bus. And never acknowledged by government. Everything was meant to be broadly fine apart from the inevitable teething problems.
It was, however, visible from space to balanced observers. You did not have to be a trade specialist to understand that replacing the Single Market with a third country trade arrangement meant the end of many if not all of the complex arrangements optimised for the former.
In the absence of substantive mitigations, the Brexit winners are those who subscribe to some woolly notion of ‘sovereignty’ and those who did not like freedom of movement. The losers are everyone else.
But, of course, that’s not good enough. For understandable reasons Brexit was sold as a benefit not a cost. The trading benefits of freedom would far outweigh the costs. Divergence would benefit all.
The Commission’s view, according to several sources, is that Brexit means existing distribution networks and supply chains are now defunct and will have to be replaced by other systems.
Brexit reality bites: The new dawn of trade friction via @RTENews https://t.co/p6VdlhZUAN
— Tony Connelly (@tconnellyRTE) January 9, 2021
Of course, this was never written on the side of a bus. And never acknowledged by government. Everything was meant to be broadly fine apart from the inevitable teething problems.
It was, however, visible from space to balanced observers. You did not have to be a trade specialist to understand that replacing the Single Market with a third country trade arrangement meant the end of many if not all of the complex arrangements optimised for the former.
In the absence of substantive mitigations, the Brexit winners are those who subscribe to some woolly notion of ‘sovereignty’ and those who did not like freedom of movement. The losers are everyone else.
But, of course, that’s not good enough. For understandable reasons Brexit was sold as a benefit not a cost. The trading benefits of freedom would far outweigh the costs. Divergence would benefit all.
So. The hunt is on in Whitehall for #brexit dividends...to show some clear value in the freedoms given by Brexit.
As we report today one area being looked at is workers' rights...but it is politically difficult territory.
No cabinet decisions have been taken, but per sources, three potential areas been identified in Business Dept...
- the 48 Hour Week
- holiday pay/overtime calculations
- new EU rules on reporting hours worked...
All potentially possible post #brexit /2
The government says it has no intention of “lowering” workers’ rights....and notes that UK has actually gold-plated many EU regulations...BUT (think of government saying it won't "lower" animal welfare standards)...the devil will all be in the detail, if and when it comes /3
So the government likes to talk about ensuring workers’ rights are protected but ALSO making sure businesses has freedoms and flexibility to grow...so one man's reduction in rights is another freedom to get richer/work harder/be more prosperous. It depends how you sell it. /4
So take this 2017 story from The Sun on the cash bonanza that will be rained down on hardworking families by Brexiteers' (long standing) desire to scrap the 48-hour week. Overtime booooom..../5
https://t.co/QLqQ7rCzkv
As we report today one area being looked at is workers' rights...but it is politically difficult territory.
No cabinet decisions have been taken, but per sources, three potential areas been identified in Business Dept...
- the 48 Hour Week
- holiday pay/overtime calculations
- new EU rules on reporting hours worked...
All potentially possible post #brexit /2
The government says it has no intention of “lowering” workers’ rights....and notes that UK has actually gold-plated many EU regulations...BUT (think of government saying it won't "lower" animal welfare standards)...the devil will all be in the detail, if and when it comes /3
So the government likes to talk about ensuring workers’ rights are protected but ALSO making sure businesses has freedoms and flexibility to grow...so one man's reduction in rights is another freedom to get richer/work harder/be more prosperous. It depends how you sell it. /4
So take this 2017 story from The Sun on the cash bonanza that will be rained down on hardworking families by Brexiteers' (long standing) desire to scrap the 48-hour week. Overtime booooom..../5
https://t.co/QLqQ7rCzkv
1. #Belfast #IrishSeaBorder There is no doubt that Brexit & the accompanying Irish Sea Border has destabilised the Union. Whilst the constitutional status of Northern Ireland has not changed, the fact of N.I remaining in the single market of the EU confirms it is”a place apart”.
2. Belfast Steve Aitkin/UUP, Mervyn Gibson/OrangeOrder,Jim Allister/TUV, Jamie Bryson/Unionist Blogger, etc etc, all see the Irish Sea Border & different economic arrangements for NI apart from Britain as a “betrayal”. It comes in a long line of Tory”betrayals”.
3. #Belfast They are correct. The Irish Sea Border & EU single market moves N.Ireland closer to the Republic of Ireland in terms of economic https://t.co/tdKZhjKhWu,it doesn’t change the constitutional status of NI but it is a huge psychological blow to a Unionism.
4. #Belfast The DUP utterly failed to “strengthen the Union”. Their attempt to hold the minority Tory Theresa May govt to ransom backfired spectacularly when Boris Johnson won a significant majority. Their arrogance led them to be isolated & resented in Westminster.
5. #Belfast How does Unionism now react to this?Retreat to the”Bunker”?Repeat the ineffective “Flag”street activism of the past? The Union can now only be saved imo by reaching out to the 5-10% swing vote that will decide a future Border Poll on Irish unification,& it is coming.
2. Belfast Steve Aitkin/UUP, Mervyn Gibson/OrangeOrder,Jim Allister/TUV, Jamie Bryson/Unionist Blogger, etc etc, all see the Irish Sea Border & different economic arrangements for NI apart from Britain as a “betrayal”. It comes in a long line of Tory”betrayals”.
3. #Belfast They are correct. The Irish Sea Border & EU single market moves N.Ireland closer to the Republic of Ireland in terms of economic https://t.co/tdKZhjKhWu,it doesn’t change the constitutional status of NI but it is a huge psychological blow to a Unionism.
4. #Belfast The DUP utterly failed to “strengthen the Union”. Their attempt to hold the minority Tory Theresa May govt to ransom backfired spectacularly when Boris Johnson won a significant majority. Their arrogance led them to be isolated & resented in Westminster.
5. #Belfast How does Unionism now react to this?Retreat to the”Bunker”?Repeat the ineffective “Flag”street activism of the past? The Union can now only be saved imo by reaching out to the 5-10% swing vote that will decide a future Border Poll on Irish unification,& it is coming.
A not-so-little thread on how post-Brexit work permit regulations will apply in Scottish football and why it’s, broadly, not a good thing...
1) Work permit calculations are based on the points formula from this site - https://t.co/sjqx8Df7Zg
As things stand, while this article deals with England, the system applies to Scotland also.
The goal is 15 points and the article shows various ways to get there. Essentially, play regularly internationally or in a top 5 league and you’re in. But read the article because it’s a bit trickier than that.
2) There are elements of this I’d dispute. For example, here’s the banding of leagues and, lower down, it’s an absolute mess - Denmark (ranked 14 in coefficient table) and Serbia (16) banded lower than Croatia (20), Greece (18) and Czechs (19)? It’s wholly random.
I get the point that leagues should be banded, but there doesn’t seem to have been loads of sense applied to how these things are actually banded, rather they’ve just shoved a bunch of leagues together and hoped for the best.
1) Work permit calculations are based on the points formula from this site - https://t.co/sjqx8Df7Zg
As things stand, while this article deals with England, the system applies to Scotland also.
The goal is 15 points and the article shows various ways to get there. Essentially, play regularly internationally or in a top 5 league and you’re in. But read the article because it’s a bit trickier than that.
2) There are elements of this I’d dispute. For example, here’s the banding of leagues and, lower down, it’s an absolute mess - Denmark (ranked 14 in coefficient table) and Serbia (16) banded lower than Croatia (20), Greece (18) and Czechs (19)? It’s wholly random.
I get the point that leagues should be banded, but there doesn’t seem to have been loads of sense applied to how these things are actually banded, rather they’ve just shoved a bunch of leagues together and hoped for the best.