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No big deal

Britain’s decision to leave the European Union must be one of the riskiest decisions taken by a capitalist state – abandoning hassle-free access to a nearby large market (and a say in its rules and future development) in the hope of obtaining more trade through yet-to-be-negotiated deals with states in other parts of the world. A classic case of letting go of a bird in hand for two in the bush.

It was not a decision that any government, charged with looking after the overall general interest of a capitalist class (as all governments are), would normally have taken on its own. In fact it didn’t. Plagued by internal conflict within his party, David Cameron’s Conservative government decided to put the matter to a referendum in 2016 which it expected to win. It didn’t. A campaign to leave the EU, funded by maverick financiers opposed to any EU regulation of their activities and led by opportunist politicians, won narrowly by 52 to 48 percent.

A rearguard action in parliament, in the interest of the majority section of the capitalist class who wanted to remain, failed and the matter was settled in a general election won decisively by the Conservatives on a Brexit platform. A Vote Leave government came into office and negotiated a withdrawal from the EU on 31 January last year, with a transition period until the end of the year during which a trade deal with the EU would be negotiated.

It was touch and go. Apart from fishing, stumbling blocks were, on the UK side, ‘sovereignty’, and, on the EU side, a ‘level playing field’. Neither of which were matters of interest or concern for the majority class of wage and salary workers.

A political area is constitutionally ‘sovereign’ when its rulers have the final say in matters concerning that area. They make the laws and sign agreements with other states. They also enforce the laws and have the coercive power to do so. However, when it comes to what they decide, states are in the same position as Marx said humans were in making history. They do exercise sovereignty but not ‘as they please’, not ‘under self-selected circumstances, but under circumstances existing already.’ Those already-existing circumstances are capitalism, a world system, the operation of whose economic laws means that states are restricted in what they can in practice do. From a political point of view they have the formal ‘right’ to make the final decision — and exercise their ‘sovereignty’ in making it — but it will be a decision ultimately circumscribed by these economic laws.

Even apart from this, all inter-state agreements involve surrendering a degree of their decision-making power to some other body to make final decisions on whether or not the agreement has been infringed. In the case of the post-Brexit trade talks, it was never going to be the European Court of Justice but some other body whose decisions both parties agreed to accept – and override their sovereignty.

It should be quite obvious that the arrangements a state makes to exercise its ‘sovereignty’ are of no concern whatsoever to workers.

The EU’s concern was more pragmatic. They wanted a ‘level playing field’, by which they meant that the UK, no more than its own member states, should not have a competitive advantage in selling on the Single Market by subsiding (state-aiding) any of its industries or imposing less onerous standards on them (as over workers rights or the environment). The main problem was over future changes. The EU wanted a binding commitment from the UK to make roughly corresponding changes. The UK was reluctant to commit itself too much to this in a treaty as it regarded this as limitation on the future exercise of its sovereignty. It probably would have kept up with changes but as a ‘sovereign’ decision by an ‘independent’ state, not as something it was obliged to do.

Some pragmatic arrangement was always possible. It depended on how insistent the UK Vote Leave government under Johnson was going to be on having (or appearing to have) full, formal ‘sovereignty’. Would they give priority to something symbolic over being pragmatic? Would they be the prisoners of the rhetoric and tub-thumping about ‘independence’ that helped them win the referendum? We now know the answer.

As far as the working class are concerned, deal or no deal, we were going to be collateral damage in that our freedom to move between Britain and the Continent was to become more of a hassle as visas and stricter border controls are re-introduced and having to face shortages and price rises. Something we could well have done without in the middle of a worsening pandemic.

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