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October 2, 2016 | UK PM Announces “Great Repeal” Legislation Negating EU Power Over UK; Article 50 Deadline Set to March

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

UK prime minister Theresa May has announced a “Great Repeal” bill that will strip the EU of all authority over UK Law.

The legislation is the First Step Towards Britain Leaving the EU.

Anyone who thought she would ignore the Brexit vote was mistaken. Instead, May has become a cheerleader for Brexit.


theresa-may-2

Theresa May is to take Britain’s first step towards leaving the EU by introducing a “Great Repeal bill” that will “make Britain a sovereign and independent country again”, she has said.

Mrs May will announce her introduction of the bill, which she expects to include in the next Queen’s Speech in April or May, to the Conservative party’s annual conference in Birmingham on Sunday.

The legislation will overturn the 1972 European Communities Act — the domestic law that gives the EU powers in Britain — Mrs May told the Sunday Times. It will also convert existing EU-based laws into purely domestic legislation.

Mrs May also said she would not wait until after the German elections next autumn before triggering Article 50 — the official legal notification to Britain’s EU partners that it is leaving the bloc. The timing will be based on “UK interests”, not the convenience of other European nations, she told the Sunday Times.

“The authority of EU law in Britain will end,” she said.

Theresa May, Cheerleader for Brexit

Theresa May believes she can crush parliamentary opposition to repeal of the 1972 European Communities Act. Doing so will make the UK a sovereign nation again.

The Financial Times reports Halfhearted Remain Campaigner Emerges as Cheerleader for Brexit.

She was a halfhearted campaigner for Britain to stay in the EU but speaking before the Conservative party faithful on Sunday Theresa May presented herself as a confident cheerleader for Brexit, declaring: “We are going to be a fully independent, sovereign country.” In doing so, she has embarked on a daring game of brinkmanship with the rest of Europe.

Mrs May turned to the future, setting out plans to trigger the Article 50 exit clause by March 2017, when she will set out a list of demands that sounded like they will comprise the decisive break with the EU demanded by Tory Eurosceptics.

With her insistence that Britain would neither “give up control of immigration again” nor submit to the rulings of the European Court of Justice in Luxembourg, it is hard to see how the UK can continue as a member of the single market.

Mrs May’s team insist no decision on the single market has been taken, while the prime minister herself claimed that the distinction between a “hard Brexit” and a “soft Brexit” was a false dichotomy and said that a bespoke deal for the UK was available. She will find out soon enough: by setting an Article 50 deadline of March 2017, Mrs May has given herself just six months to decide on a negotiating strategy and to find out whether it can fly.

“What if the French say ‘non’?” asked one official — a risk that is more than theoretical, since Mrs May intends to launch her démarche in the heated environment of the French presidential elections in April and May.

The Euroscpetic Sun newspaper, which has lampooned many a Eurocrat, portrayed the prime minister as Britannia — iconography it last deployed for Margaret Thatcher.

May announced that Jeremy Wright, the attorney-general, would himself go into battle in the courts to take on those who were trying “subvert” democracy by challenging in her right to trigger Article 50 without parliamentary consent.

Those who warned of the risks of a “hard Brexit” were often people who had “still not accepted the result of the referendum”, Mrs May added. She believes she can crush any parliamentary opposition to the repeal of the 1972 European Communities Act.

But that opposition is still likely to rear its head. Tim Farron, leader of the pro-EU Liberal Democrats, said: “Theresa May has just confirmed that we are going for a hard Brexit. This means no single market for Britain. This means disaster for British jobs, businesses and our economy.”

Cheers for “Britannia”

A poorly thought out provision of the EU treaty is all nations must approve treaty changes, trade agreements, etc., making even rudimentary changes to the treaty difficult at best.

Whether or not France, Cyprus, or any other country says “non” is in one sense irrelevant: The UK will be out of the EU by 2019.

Prisoners Dilemma of Sorts

Hard Brexit is not a choice the UK will make. Hard Brexit is a choice the EU will make, and the EU will have to live with.

Sure, the EU can opt to punish the UK for leaving, but doing so simply makes the EU look like a prison.

The UK will strive to protect itself. The best way would be to cut the corporate tax rate to zero. That would have the EU hopping mad for sure. Would businesses want to leave the UK for France? Hardly.

Insistence the UK get a “fair but inferior deal” is of course ridiculous by definition. But that is the status quo (See Gang of 27 Hits UK with Impossible Demands: EU Seeks “Inferior” Deal for UK, Spain Wants Gibraltar).

It would behoove the nannycrats in Brussels to consider it would be impossible for the UK to accept freedom of movement of labor and refugees when that is why the UK left.

Gang of 27 Demands

  • Four freedoms or no freedoms. The main sticking point is immigration.
  • Pay to play. The EU wants money for access.
  • Spain wants joint sovereignty over Gibraltar.

UK Demand

Immigration Restrictions

Four Freedoms

  1. The free movement of goods.
  2. The free movement of services and freedom of establishment.
  3. The free movement of persons (and citizenship), including free movement of workers.
  4. The free movement of capital.

EU Hypocrites on Free Movement of Capital

Curiously, the EU does not abide by its own rules. Greece is still under capital controls. Cyprus was under capital controls from 2013 to 2015.

Free movement of capital? Ha!

EU Hypocrites on Free Movement of Services and Freedom of Establishment

To understand the hypocrisy inherent in point number 2, Look no further than French rules on nearly everything. Businesses cannot fire workers, move elsewhere, shut plants, etc.

EU Hypocrites on Free Movement of Goods

Think goods move freely? Then think again.

Please consider French Farmers Dump 90,000 Bottles Worth of Spanish Wine Because…Spanish!

Among the many wonders of the European Union was the creation of a vast, free trade zone in which member countries could more or less import and export goods with, er, impunity (not the right word, as it implies something negative about economic exchange).

French farmers, among the most-subsidized being on the planets, have long been mindful of any and all threats they believe might undermine their way of life. And so, this:

A group of French farmers stopped two Spanish trucks on Monday at the toll gate of Le Boulou in southern France near the border.

The farmers then dumped the wine the vehicles were transporting, according to the Spanish Federation of Freight Transportation (CETM).
The assault took place in front of television crews and French police who “allowed the demonstrators to act with impunity”, the CETM, which represents truckers, said in a statement….

These events, which unfortunately occur regularly, are a cause of concern for the Spanish government, as they represent a flagrant violation of several basic principles of the European Union, such as the free circulation of goods between member states,” [the Spanish foreign minister] added.

EU Hypocrites on Free Movement of Persons

The EU “Dublin” rule requires an asylum seeker to register in the first country the refugee landed. How did that work out? And how many cascading walls in how many countries came about as a result? Is bribing a country with payments as Germany did Turkey in the spirit of the rule? What about the positions of Austria, Hungary, Poland, and the Czech Republic?

Collective Bunch of Hypocrites

The EU is nothing but a collective bunch of hypocrites, insisting the UK abide by rules that many nations freely flaunt.

Hard or soft, the UK was wise to rid itself of EU nannycrats and their impossible to deal with regulations and bureaucracy.

Good riddance.

Mike “Mish” Shedlock

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October 2nd, 2016

Posted In: Mish Talk

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