There is a lot of huff and puff today because the European Union failed to agree on a rescue package – there will be no bonds to bail out the superstructure and worst they have had to resort to accepting junk bonds as collateral because Italy will be downgraded. They cannot afford to lose the United Kingdom's budgetary contribution.
The European Union is not a country but a superstructure. The management of the crisis has been left to individual countries so his offer to focus on the crisis whilst we continue to pay to this defunct superstructure is null and void. The EU is begging for the UK not to leave because Germany and Holland will not foot the bill and will not accept to take on liabilities that will weaken their domestic economies.
Tactics
The European Union is asking for the United Kingdom and Brussels to come to an agreement on an extension and we should not budge. What Michel Barnier is doing is moving the goalpost from 31st December to June to restrict times and makes us believe it is not possible to strike a deal by the end of the year even with the best endeavours. It is all posturing.
The European Union is relying on a network of businesses who are already losing money due to Covd to do two things:
- Force Boris' hands to reopen the economy so that they can recoup some of their losses and if the second wave comes it will lose all political credibility because people won't forget the PM if he places money over lives.
- Push for a delay because their businesses will struggle outside the European Union.
Remember when Philip Hammond promised big businesses that 'no deal' will be stopped? Big businesses have never been pro-Brexit. They benefited from Brussels regulatory protection courtesy of lobbyist to stay on top leaving startups unable to cope. The world has changed and perhaps the old guard should do too.
It is not for Michel Barnier to decide what the United Kingdom can or cannot refuse. It is time for the United Kingdom to behave like a sovereign country and stand firm on its promise to leave the European Union. Prepare yourself for further disruptions, tumults and push backs from a very damaged Union.