Thursday, June 30, 2016
Geopolitics: Brexit - A Victory For Democracy
The English divorced themselves from an European Central Government - kind of. Brussel has been gaining more and more power over the years - developing the European Union into something like the defunct Soviet Union, a bundle of states ruled by a central government. The European Parliament and the EU committee, especially Jean-Claude Juncker, the President of the European Commission, treat the EU increasingly like a kingdom. Even after the Brexit decision they want to expand the power of the EU and demand more integration, meaning more power for Brussels ( spiegel.de).
In some days the Americans will celebrate their Independence Day (Fourth of July). They had fought a war because they didn´t want to be controlled by an foreign power and pay taxes to her. The English people want independence as well - without a war. Many commentators who want to shame the "leave" decision, don´t understand democracy, they don´t want it. People, who claim that Brexit will cause "chaos", mean that democracy is chaos. They equalize freedom with disorder & disarray.
Brussel is deciding about almost everything in the Union. Take for instance Commission Regulation (EC) No. 2257/94 of 16 September 1994 which is laying down quality standards for bananas, also known informally as bendy banana law. It is a European Union regulation specifying classification standards for bananas ( wikipedia ). According to EU law, the Brits couldn´t work for more than 48 hours a week, averaged over 17 weeks ( marketwatch ). And there is much more: 60% of the laws in Uk came from the EU in Brussels rather than from Parliament in London ( marketwatch.). Growing bureaucracy and controls (Eurosklerosis) are holding growth in the Union back. "It's not hard to understand being pissed off at being subject to unaccountable bureaucrats in Brussels", writes Rolling Stone author Matt Taibbi ( rollingstone ).
I am for free trade and I agree to an European Free Trade area (the more countries participate the better, best would be the whole world). But I am against the overgrowing bureaucracy. And the EU is certainly not for free trade. The EU is a bastion against globalization behind high tariffs and other barriers against foreign goods & services.
The British economy also will benefit because there will be less regulation. A liberal (less regulated) England could attract companies and investors from all over the world. The economy blogger Scott Grannis writes "one of the very good things that could come of a Brexit: shaking off the Eurosklerosis that has held back growth in the Eurozone for many years" ( scottgrannis ).
Small countries can prosper even when they are not part of a big union: Switzerland and Norway aren`t member of the European Community - and both countries are doing well. People worldwide are buying Swiss products & services and don´t care whether the country is part of an union or not. If you need more examples for small independent countries who are prospering, you might take a look on the history of Singapore & Hong Kong. It is highly unlikely that the rest of the world will curb trade with England and invest less there if the country is on her own. Companies are doing business with the island because they are making profits there. Why should they give up these profits?
Btw. In the moment of writing the FTSE 100, the gauge for the British stock market, hovers at 6,422 points. On June 23, the day before Brexit results came out, the index finished on 6,388 points. So what?