“European leaders are likely to favour as amicable a settlement as possible”

A piece notes that after Brexit, the talks, despite minor tensions will be resolved cordially in the interests of all, “There has been no single official response by the European Union to the U.K.’s decision last week to vote in favour of leaving the bloc. Instead, we’ve seen a flurry of mixed and competing messages – a sort of good cop-bad cop routine, with European Commission President Jean-Claude Juncker pounding on the table and German Chancellor Angela Merkel asking Britain to take a few deep breaths and think. Toughest of all have been leaders of the EU’s institutions. Negotiations for exit must start immediately, argued Juncker, alongside European Parliament President Martin Schulz – Europe can’t be held hostage to an equivocating Britain. Seeing a chance to make a power grab, high-profile European parliamentarians – such as former Belgian Prime Minister Guy Verhofstadt – have, too, demanded a speedy departure and pressed for a seat at the Brexit negotiating table alongside representatives from the 27 EU member states”.

The author mentions that “By contrast, the member states themselves, and their leaders in particular, have been much more guarded. Belgian and Italian officials argued for speeding up divorce proceedings at a meeting of national diplomats last weekend, but they were in a minority. Most agreed to proceed with caution. Merkel, in particular, has warned against any anti-British backlash. Europe’s pragmatic national leaders are likely to prevail over the EU true believers in Brussels. All may have been irritated over the years at the U.K.’s prickly relationship with the EU, and its departure from the union will force all remaining member states to think long and hard about how they can renew their cooperation. But none of that’s a reason to expect an ugly divorce. A popular view in Brussels, and in some national capitals, is that ever since the U.K. joined the Common Market in 1973 it has vetoed ambitious projects of continental integration, leaving the EU weaker and more divided. The U.K.’s exit is, for these Machiavellian federalists, a golden opportunity to take the EU in a different direction, to advance their project of “ever closer union,” involving deeper fiscal union and the launching of new pan-European institutions like a European army. But to take advantage of this chance, they believe, they must move quickly – hence the hostility to Britain’s dallying”.

The writer makes the point, “There is also the fear that the referendum result may not stick, and so negotiations on Brexit must start before the U.K. has a chance to change its mind. Options for backing out are already being floated by some from the “Remain” camp. And a cold-feet reversal wouldn’t be as radical as it appears. After all, the EU has ignored referendums in the past: The Irish were asked to vote again after rejecting the Lisbon Treaty in 2008 and the French and Dutch voted against the constitutional treaty in 2005, only to see it reappear virtually unchanged in the form of the Lisbon Treaty a few years later. Most recently, Greeks overwhelmingly rejected a bailout deal in 2015, but their prime minister signed off on a worse one shortly afterward. But this attitude falls on deaf ears in many national capitals, and member states will have the final say on how to deal with the U.K. Among national leaders, the prevailing belief is that the block must proceed with caution when formulating its response to the U.K. referendum. This stems from the realization that the U.K.’s vote is not an isolated event, but connected with wider European politics”.

Crucially he makes the point that “Experienced politicians, such as Merkel, view the political meltdown taking place in the U.K. with great concern. The fallout from the Brexit vote has revealed the fragility of the British government’s authority and how weak mainstream political parties in the U.K. have become. For Merkel, who has made the center-ground in German politics her own, or for embattled leaders like Matteo Renzi in Italy and François Hollande in France, events in Britain are a sobering reminder of their own domestic political struggles. Renzi recently lost mayoral elections in Rome and Turin to the anti-establishment Five Star Movement, and his political future looks more uncertain than ever. Hollande leads a Socialist Party that has lost much of its support among working-class French voters, just like the British Labour Party has. The French political establishment will take the success of the U.K. Independence Party in the EU referendum as a warning about the chances of Marine Le Pen’s National Front in next year’s presidential elections”.

He concludes “In some ways, other EU member states are in more of a bind than the U.K. Since the U.K. does not use the single currency, its vote to leave the EU is complicated but achievable. For eurozone countries, exit is almost unimaginable. Faced as they are with deep domestic discontent, governments in the eurozone share many of the U.K.’s problems but have fewer options available to deal with them. And the already fragile and stagnant eurozone is hardly in a fit state to withstand the economic shock of Brexit. Shares of Southern European banks, for instance, took a dramatic hit after the Brexit result was announced and many eyes are on Portugal and Italy”.

Correctly he ends “For these reasons, the good cops are likely to win out: When negotiations around Brexit do begin, they are likely to be orderly and reasonable. There will be no excessive generosity, given that the remaining EU member states want to discourage their populations from arguing for a similar in/out referendum. But a hostile set of negotiations driven by a desire to punish the U.K. are also very unlikely. After all, voters in France, Germany, Italy, and elsewhere across Europe are angry with their own politicians, whom they consider remote and self-serving. They are far less preoccupied with punishing the U.K., a sentiment that belongs to disappointed Eurocrats more than it does to European citizens. What these citizens are concerned about is the dire economic performance of their economies, one which acrimonious negotiations with the U.K. would not help. Concerned about the impact of Brexit on the eurozone, European leaders are likely to favour as amicable a settlement as possible, where the economic interests of all concerned are accommodated”.

He finishes “As befits a bloc made up of national governments whose politicians are acutely aware of the fragility of their own authority, the response to the U.K.’s decision to leave the EU has so far been muted. The nastier and more jubilant responses have come from those parts of the EU that are more isolated from the realities of national politics – from the European Commission and the European Parliament. The sense of opportunity felt by Euro-federalists does not extend much beyond the Brussels bubble, and it is certainly not shared by governments in national capitals. There, the feeling is more one of a generalised political crisis that needs to be managed carefully if it is not to engulf the EU as a whole. The EU’s future rests upon its national governments being able to contain growing voter dissatisfaction with mainstream political establishments. This is the greatest challenge for the EU, and one that means European leaders will continue to tread very carefully over the next few weeks”.

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