A sensible Brexit deal

Although Parliament has officially broken up for the summer, the debate about Brexit continues to heat up as MPs head for their summer holidays. The current momentum appears to be moving towards the Chancellor’s position of accepting the need for a transitional phase after Britain’s formal exit from the European Union. This transitional phase could see Britain stay in the Single Market and Customs Union for a limited time period as the final stages of a trade deal are negotiated and business adapts to the new environment.

This apparent change in direction and policy from the Government is a direct consequence of the recent General Election. It is wrong to claim, as some do that the result of the General Election was an uprising against Brexit, but it is also wrong to claim the Government can continue as if nothing has changed. The new parliamentary arithmetic does impact on the type of Brexit the Government could hope to get through Parliament. This indicates the Government is going to have to compromise.

The benefits of a transitional phase are clear. It ends the prospect of a cliff-edge Brexit and reduces the danger of a ‘no-deal’ solution, and in doing so limits the possible economic consequences. This level of compromise would appease some of the more moderate Remainers in Parliament. It would also help provide businesses with clarity, whilst accepting their argument that they will need time to adapt to the new climate. Furthermore, the additional time period could be vital in thrashing out the final details of a satisfactory trade deal between Britain and the EU.

This gives clear ground to ‘Remainers’ but may worry the ‘Brexiteers’. Therefore, in order to highlight the referendum deal is being respected, then there must be a clear end date to the transitional phase when Britain formally cuts all ties with the European Union. A transitional phase cannot be used as an excuse to stay in the European Union indefinitely. A transitional phase which ends before the next General Election which is scheduled to occur in 2022 would appear to most a sensible time limit, which gives the Government time to deliver on their Brexit promise and for business to adapt.

A transitional phase will not please everyone. The most ardent Remainers will never accept the referendum result, while the most extreme Brexiteers will reject the need for any negotiations with the European Union. However, this sort of agreement could appeal to moderate Brexiteers and Remainers who want to make Brexit work.  With the evidence showing this is where most of the population lie, expect this solution to gain more and more traction in the immediate future.

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