Retreat from Glory

Last week I blogged on the echoes from the 1930’s and the German position after the Versailles and Locarno treaties and the U.K. position and the E.U. at the present time.
The blog was based on the book Retreat from Glory by R.M. Bruce Lockhart.
The Retreat from Glory can be applied in the ironic sense to the EU as it negotiates Brexit. Here I am indebted to Guido Fawkes for the  chart.
Well, faced with €12 billion walking out of the door who would not be petulant.
What’s more interesting is that France with an economy and population comparable to ours makes a net contribution less than half of ours.
Why does Italy pay make a net contribution and Greece makes a net withdrawal?
There’s a Ph.D. project in the making as to the relationship of contributions to GNP, who comes out best and why.
But looking to the future there are two questions to be asked: What will we do with the money we no longer pay to Brussels and What will the EU do to fill the hole?

Zero Sum Game

Brexit CartoonA Zero Sum Game is a  situation in which a gain by one person or side must be matched by a loss by another person or side. Good examples of this can be found in the following list which was sent to me by email showing losses to the United Kingdom as a result of activities being transferred abroad with EU assistance, often financial.

  • Ford Transit moved to Turkey 2013 with EU grant.
  • Cadbury moved factory to Poland 2011 with EU grant.
  • Jaguar Land Rover has recently agreed to build a new plant in Slovakia  with EU grant, owned by Tata.
  • Peugeot closed its Ryton (was Rootes Group) plant and moved production  to Slovakia with EU grant.
  • British Army’s new Ajax fighting vehicles to be built in SPAIN using  SWEDISH steel at the request of the EU to support jobs in Spain with EU  grant, rather than Wales.
  • Dyson gone to Malaysia, with an EU loan.
  • Crown Closures, Bournemouth (Was METAL BOX), gone to Poland with EU  grant, once employed 1,200.
  • M&S manufacturing gone to the Far East with EU loan.
  • Hornby models gone. In fact all toys and models now gone from UK along  with the patents all with with EU grants.
  • Gillette gone to Eastern Europe with EU grant.
  • Texas Instruments Greenock gone to Germany with EU grant.
  • Indesit at Bodelwyddan Wales gone with EU grant.
  • Sekisui Alveo said production at its Merthyr Tydfil Industrial Park  foam plant will relocate production to Roermond in the Netherlands,  with EU funding.
  • Hoover Merthyr factory moved out of UK to Czech Republic and the Far  East by Italian company Candy with EU backing.
  • ICI integration into Holland’s AkzoNobel with EU bank loan and within  days of the merger, several factories in the UK, were closed,  eliminating 3,500 jobs.

I have edited the comments from e-mail and I have only checked the first statement which can be verified from the Daily Telegraph of 3rd October 2007.

http://www.telegraph.co.uk/finance/markets/2816921/Cadbury-to-move-jobs-to-Poland.html

Nevertheless the sentiments ring true.

 

Brexit

bojesen_brexitMonday’s Daily Telegraph (2nd November) was full of gems. Roger Bootle’s column contained the best arguments I have seen for the Brexit. On past form the EU will continue to stretch its tentacles wider and deeper into every nook and cranny of national life. Hence the costs of its interference will rise substantially. Meanwhile, over time, the EU budget will surely increase. The logic of moving towards a closer union is that the central budget should outrank national ones.
If most of the EU moves towards full fiscal and political union, it will be very uncomfortable for the UK to be inside the EU but outside that bloc. Finally, the EU itself is likely to fall in relative importance in the world.
But if the rest of the world is continuing to grow in importance, the benefits of membership would be proportionally smaller and the costs yet more unnecessary. It is highly likely that there will be a deal which gives the UK special access to the EU markets. We would have freedom to rescind EU laws and regulations – which are estimated to cost several per cent of GDP. We would keep the UK’s net contribution to the EU which is about ₤9bn a year. http://www.telegraph.co.uk/finance/comment/11968813/Three-reasons-why-Britain-needs-Brexit.html
Elsewhere in the Telegraph we are told that Direct CAP payments to Britain will average ₤2.88bn a year from 2014 to 2020 and that without this subsidy many farmers will go bankrupt. But if leaving the EU saves ₤9bn a year, then we can pay for our own food security and not need to have the monies recycled through Brussels.