Over three years ago I wrote the following post – ‘What is the European Single Market?’ : What is the European Single Market?
I concluded that the executive, or to use my term ‘fiduciary’ duty of the European Commission, which is collegiate, is market efficiency, which depends upon the integrity of the Union, and drew attention to the fact that,
‘EU legislation in its entirety amounts to some 13 per cent of our laws according to the House of Commons library, and single market rules are a proportion of that. Within even that smaller proportion, we would have little option but to keep most of it anyway.
First, some of it is where the EU has set standards that have since become world standards, as frequently happens. Second, sectors such as chemicals, aviation, pharmaceuticals and agriculture will still be dependent on EU rules that apply to their supply chains. Thirdly, some EU rules are the simple application in the single market of world level agreements in the WTO, UN agencies and so on. Fourthly, most rules are not controversial and there would be no particular gain from changing them. All in all, the extra “sovereignty” to do our own thing would, in practice, be limited, and not worth the economic damage of leaving the single market.’
So for Europe, the issue has never been, and is not Britain’s sovereignty, it is the existential issue of market efficiency, because efficiency depends upon integration, and integration determines economic power. In other words, the policy and behaviour of the EU is founded upon their rational economic self-interest as a trading block.
I am not sure that on this side of the Channel that has been, and is, understood by the public, and it may be too late to find a way of collaborating in our mutual ‘fiduciary’ interests.
It appears that the negotiations were never conducted through the prism or lens of a mutual ‘fiduciary’ economic relationship, i.e. they were positional and confrontational.
A mutual fiduciary issue is Private International Law. If there is no deal the Brussels 1 Regulation will not apply from midnight on 31.12.2020, and no arrangement for another private international law convention to fill the vacuum will have been agreed. This will be discussed in my next blog.
For more blogs please google ‘Carl’s Wealth Planning Blog’: Toward a practical theory of fiduciary government | Carl’s Wealth Planning Blog