UK-EU Logistics and The Business Case for a Good Brexit Deal
On the face of it, it’s easy to see businesses as subservient to the government but in reality the reverse is true. Businesses are the wealth generating component of an economy and so the state has an obligation to acknowledge the intentions of businesses who are trading to meet the demands of the people. This is a core liberty afforded to us by free-market economics.
Every penny of government spending is generated through the taxation of wealth transfer in the form of levies such as corporation and income tax. In essence, Governments rely on businesses operating within their economic framework for the income that allows policy implementation. It is for this reason, if the rhetoric and posturing is put to one side, both the governments of the UK and EU certainly favour a good Brexit deal.
The UK and nations of the European Union are strong trading partners aided in part by the size of the UK economy and more so by its proximity to the European mainland. This gives Brexit negotiators on both sides of the table some accountability. A poor Brexit deal will negatively impact both the UK and the EU and the effects will be felt by the domestic population. Any such domestic impact will manifest in political discontent and pressure on governments to change their position or face removal from office at the next election. This is the population keeping its government in check.
A Close Relationship
In simple terms, a good Brexit deal will mean one where trade between the EU and UK is fostered and not unnecessarily hindered. Of course, the EU for its long term survivability must at least create the effect that the UK’s decision to leave the union was a bad one and give nations within the bloc the incentive to stay.
This will be the tipping point in negotiations, and the outcome will show how much of a priority ‘punishing’ the UK is to the EU. This will be political point scoring but trade relationships go deeper than this. On the other hand, the UK is one of the most powerful economies in the world and already has close ties with the EU. This must be worrying for Brussels.
In summary, a good Brexit deal is in everybody’s interests. However, the EU must show that leaving the bloc isn’t a positive step. In 2019, we will see how important it is to the EU that the UK is hit hard, but in doing so, how this will affect citizens of a post-Brexit EU. The good Brexit deal is the best solution, and that is difficult to challenge outside the world of political strategy, something that the everyday person cares little about.