When I listen to Merkel, I wonder just who is
Posted: 27 Apr 2017, 10:31
Delusional?
Personally I think it is long past time for a change in words,
The EU is constantly harping on about a better deal FROM the EU.
Sorry Frau Merkel, the terminology is incorrect. Brexiteers want a better deal THAN the EU.
Let's face facts.
Free market? Only use a small part of it. 42% (correctly calculated), of our exports
Open borders? Don't use it
Common currency? Don't use it
Free movement of people? Yes, we use it, to import large numbers of cheap workers. But the other way around? There are regulations on top of regulations to deter UK citizens from easily going to another EU country. This I know very, very, well. The UK and Ireland have simple and easy regulations in this respect.
In terms of trading and trade balance, of the top 49 importers to the UK, the UK only has a trade surplus with _one_ EU country. Would it surprise you to know that that country is Greece? We have the same trade balance with Germany that we do with China! WE have a $10bn trade surplus with America for god's sake.
We don't want a better deal than the one we have in the EU. We don't even want as _good_ a deal as we had in the EU. What we want is to emerge from the EU and make our way in the world. In the process we want to limit the damage of that exit as much as possible. Both for the UK AND the EU because we're actually sensible people who see no reason to go crazy over leaving and trash the whole world.
The rhetoric coming out of the EU smells massively of fear. Germany has €60bn of exports to the UK at stake. Yes we have €30bn of exports to Germany at stake too. But, this is the point. What we export to Germany is in demand all over the world. Outside of the EU, we can avoid the reciprocal barriers which have been raised due to EU protectionism. The next 2 years gives us the opportunity to negotiate to sell those goods and services to the rest of the world.
Let me ask a simple question. Would you pay 35% (or perhaps even 10%), more for your Audi, Volksagen, Skoda, Seat? Because VAG, after their lies and perfidy, are in really serious trouble. The vast majority of the €60bn in exports from Germany to the UK are cars and the largest portion of that trade is VAG. Will our businesses pay 35% more to get Scania, Vovlo, MAN, Mercedes trucks? Or will they look to other countries to fill that gap? Oh yes, the Scandinavian truck manufacturer's are owned by German companies and their exports go to German GDP, not Swedish.
So Frau Merkel, when are you going to realise that the EU rhetoric could, quite easily, kill VAG, currently sitting on it's sick bed.
Merkel might actually want to be asking "what do you need" and trying to work out how to spin that as a significant reduction in the "deal" that the UK gets from the EU, without actually changing our relationship with the EU, in terms of trade, one little bit.
Food for thought!
Also think this one through. GM got out of Opel and Vauxhall because of the poor performance of Opel in Germany, not the poor performance of Vauxhall in the UK. The sweetener for PSA was Vauxhall because it will give them a manufacturing base in the UK to sell their other cars which they currently export. Of course if things go really badly, they can get rid of Vauxhall workers more easily than Opel one's in Germany, but, think, if they're keeping some €30bn in trade alive via Vauxhall, that's a lot of money to sort out Opel.
There is a highly massaged message going on here which lends itself to both the French elections and the German elections. It is, however, very far from the truth.
About time our government called the bluff.
Personally I think it is long past time for a change in words,
The EU is constantly harping on about a better deal FROM the EU.
Sorry Frau Merkel, the terminology is incorrect. Brexiteers want a better deal THAN the EU.
Let's face facts.
Free market? Only use a small part of it. 42% (correctly calculated), of our exports
Open borders? Don't use it
Common currency? Don't use it
Free movement of people? Yes, we use it, to import large numbers of cheap workers. But the other way around? There are regulations on top of regulations to deter UK citizens from easily going to another EU country. This I know very, very, well. The UK and Ireland have simple and easy regulations in this respect.
In terms of trading and trade balance, of the top 49 importers to the UK, the UK only has a trade surplus with _one_ EU country. Would it surprise you to know that that country is Greece? We have the same trade balance with Germany that we do with China! WE have a $10bn trade surplus with America for god's sake.
We don't want a better deal than the one we have in the EU. We don't even want as _good_ a deal as we had in the EU. What we want is to emerge from the EU and make our way in the world. In the process we want to limit the damage of that exit as much as possible. Both for the UK AND the EU because we're actually sensible people who see no reason to go crazy over leaving and trash the whole world.
The rhetoric coming out of the EU smells massively of fear. Germany has €60bn of exports to the UK at stake. Yes we have €30bn of exports to Germany at stake too. But, this is the point. What we export to Germany is in demand all over the world. Outside of the EU, we can avoid the reciprocal barriers which have been raised due to EU protectionism. The next 2 years gives us the opportunity to negotiate to sell those goods and services to the rest of the world.
Let me ask a simple question. Would you pay 35% (or perhaps even 10%), more for your Audi, Volksagen, Skoda, Seat? Because VAG, after their lies and perfidy, are in really serious trouble. The vast majority of the €60bn in exports from Germany to the UK are cars and the largest portion of that trade is VAG. Will our businesses pay 35% more to get Scania, Vovlo, MAN, Mercedes trucks? Or will they look to other countries to fill that gap? Oh yes, the Scandinavian truck manufacturer's are owned by German companies and their exports go to German GDP, not Swedish.
So Frau Merkel, when are you going to realise that the EU rhetoric could, quite easily, kill VAG, currently sitting on it's sick bed.
Merkel might actually want to be asking "what do you need" and trying to work out how to spin that as a significant reduction in the "deal" that the UK gets from the EU, without actually changing our relationship with the EU, in terms of trade, one little bit.
Food for thought!
Also think this one through. GM got out of Opel and Vauxhall because of the poor performance of Opel in Germany, not the poor performance of Vauxhall in the UK. The sweetener for PSA was Vauxhall because it will give them a manufacturing base in the UK to sell their other cars which they currently export. Of course if things go really badly, they can get rid of Vauxhall workers more easily than Opel one's in Germany, but, think, if they're keeping some €30bn in trade alive via Vauxhall, that's a lot of money to sort out Opel.
There is a highly massaged message going on here which lends itself to both the French elections and the German elections. It is, however, very far from the truth.
About time our government called the bluff.