Tag Archives: UK

Brexit: The future and the fallout

Brexit has won. It is not yet possible to understand all of the serious consequences of this popular – and populist – decision.
Three aspects seem to be central at this early moment after the counting of votes.

One, divorce negotiations have to be led in a constructive and fair spirit, but also in a way to make clear to everybody that exit means good-bye. There are Norwegian models of formalizing a new relationship, as well as Canadian and Swiss models. That remains to be seen. But the EU side has to make absolutely clear that leaving does not come with a premium, thereby setting an incentive for others to follow.

Two, there are politicians who want to play domino. Erdogan, not even being a member (and looking at his policies without a chance to become one), prepares a referendum on terminating the accession negotiations. Wilders in the Netherlands wants to have a referendum on ‘Nexit’ now as well. Others will follow. While the EU cannot and should not prevent that when national legislation allows for a referendum, these options should not look attractive. And, as expected, the first economic trends look disastrous.

Thirdly, the underlying problem is the huge and growing wave of popular resentment toward politics and politicians. And yes, decision makers in most countries are underperforming. The EU was and is not able to convey the impression that it can cope successfully with the challenges like the Eurocrisis and overspending in some countries; terrorism and related security issues; conflicts and failing states in the MENA area, the growing relevance of social networks, and the resulting migration streams; an unpredictable, rule-violating and assertive Russia; an arc of frozen conflicts from Ukraine to the Trans- and Northern Caucasus; and others. All of this is fuelling populism.

I invite you today to share your opinion on any or all of these aspects.|
– Prof. Dr. Klaus Segbers

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Brexit – The Beginning of the End?

The prospective of an exit of the UK from the EU has turned from a distant opportunity and a bargain chip into something quite real. It very well may happen that early this summer the EU will lose, for the first time, a member state.

For the EU, this could mark a potential watershed beyond which a much loser agglomeration of states would constitute a weaker union. Also, a less liberal one. There would be a whole range of agreements that have to be annulled, or re-negotiated. The EU also would have to secure its fabric and avoid that other member states also claim special rights for themselves.

For the UK a phase of deep uncertainties would begin. There are no bilateral trade agreements with individual member states of the EU. The future of the City of London would be even more uncertain. And Scotland may finally opt to leave the rest UK.

So would the EU become more consistent without a UK notoriously asking for a special relationship? Or would this indicate the beginning of the end?

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Will the Joint Comprehensive Plan of Action survive US ratification? Could this agreement lead to a new role for Iran and serve as a stabilizing factor for the region?

The agreement between Iran and the ‘5 + 1’ group (the five permanent members of the UN Security Council, plus Germany) has been signed.

This seems to be good news for all parties involved for the following reasons: First, the economic sanctions against Iran will be lifted gradually. Second, the break-out options of a nuclear bomb for   Iran will be reduced. Third, western and Russian economic cooperation with Iran now has the ability to blossom. And lastly, some people are now able to visualize potential for a more moderate influence by Iran in the neighborhood of MENA.

BUT, it is not quite clear if the agreement will actually be ratified. In Iran the highest leader Khamenei has verbalized some critical remarks, but he seems to be in overall support of the agreement.

The Israeli government is openly ranting about their unwillingness to form any agreement with Iran, just as they have in the past. The most difficult impediment the final ratification is facing is coming from Washington. Congress is very skeptical, and may try to de-rail this agreement after all.

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