We are developing the social individualist meta-context for the future. From the very serious to the extremely frivolous... lets see what is on the mind of the Samizdata people.

Samizdata, derived from Samizdat /n. - a system of clandestine publication of banned literature in the USSR [Russ.,= self-publishing house]

Reasons for the UK to leave the EU keep piling up – the EU Arrest Warrant

I have been familiar with some of the details of a Romanian case, which has taken a shocking turn, and it highlights the mess of the European Union’s Arrest Warrant. Stephen Pollard, editor of the Jewish Chronicle,  writes about the case. Even the more cynical out there will be shocked at the brazenness of the Romanian government in this case. And it raises a wider issue about governments co-operating to move alleged suspects from A to B and sharing data with one another about their citizens.

Consider a new anti-tax evasion regime called the Common Reporting Standard, under which certain governments swap data to catch alleged tax dodgers. With CRS, there is a presumption that the countries involved can move information around and that this will not compromise legitimate financial privacy. All I can say is “good luck with that”. Abuses will occur. (Governments in recent times have been happy to obtain data from Swiss banks via thieves, for example.)

The UK has an extradition treaty with the US and this has caused controversy at times because of the alleged lack of a need for a prima facie suspicion of guilt to be proven against a person before extradition (instead, a country has to show “probable cause”, which waters the test down marvellously). What may be a crime in the US, for existence (running an internet gambling site, for example) isn’t in the UK. And so on.

The Romanian case in question here is particularly noxious to a sense of justice because of the heavy-handed behaviour of Romania. Its attempt to bully news organisations that are covering controversies, such as arms dealing, is also outrageous – such an attack on freedom of the press hardly meets the sort of test one would have supposed is necessary for a country to be a member of the EU at all. And as long as this arrest warrant remains, I see zero chance of a country such as Turkey joining the EU.

I’d like to know what the UK government’s view is of the case, and of whether any MPs have taken this matter on. Theresa May, the Prime Minister, is not exactly a poster girl for civil liberty, but even she might be shocked at what is going on here. (When she was Home Secretary, she blocked an extradition of a person to the US.)

One way for Mrs May to prove that “Brexit means Brexit” is to ensure that the UK removes itself from the EU arrest warrant process immediately. The reasons why I am so glad the UK voted to get out of the whole wretched structure continue.

Addendum: As an aside, it is also worth noting that these actions by Romania are often typical of certain regimes seeking to crush alleged corruption. Much of the media will applaud this; I even spoke to a fund manager about Romania, who applauded the steps that the country has made against corruption. But as we have seen in countries such as China, anti-corruption sometimes means little more than score-settling or persecution of political opponents or those who are deemed to be embarrassing. (And needless to say, the ultimate case of this is Putin’s Russia, and Romania is to some extent under Russian influence.)

Apple replies to the EU, and it is magnificent

In an astonishing EU ruling, Apple is being told the pay the Irish state €13 billion(!!!) in retrospective taxation that the Irish state never asked for. And the reply from Apple is very well crafted. It is clear they are not going to take this shakedown by the European Commission lying down.

Another fail by Obama

With the TTIP, the EU and US set out trying to construct a slightly watered down version of the single market – in which corporations would be able to use the courts to force governments to open up their public services to foreign providers. It was doomed to collapse because there is such an obvious asymmetry between the US and the EU on this. The US already has high involvement of private companies in the provision of public services. As for those where the state does still retain a monopoly – like defence – there is no way US courts are going to allow, say, French missile manufacturers to supply weapons. It will be ruled out on grounds of national security.

Europe, by contrast, has a relatively high degree of state involvement in the economy, giving plenty of juicy opportunities for US firms – and plenty of reason for left wing parties in France and Germany to oppose TTIP. Britain may now be at the back of Barack Obama’s queue – though what relevance that has given that it will soon be where we stand in Hilary Clinton’s or Donald Trump’s queue that matters. But my money would be on post-Brexit Britain sewing up a trade deal with the US before the EU has managed it.

Ross Clark, having fun at the expense of Barack Obama, whose comment earlier this year that the UK would be at the “back of the queue” in trade deals with Washington if it had the temerity to quit the European Union has, along with so many others, backfired.

We are often told that President Obama was going to bring us an era of smart diplomacy, unlike that that moron Bush, etc, etc. The gap between the promise, and the reality, is wider than ever.

House Of Lords to overturn referendum?

Over on Facebook, where I occasionally joust with Remainers who are still in shock and anger at the impertinence and evil of their fellows in voting to leave the EU, a person applauded an apparent suggestion that the result could be blocked, by the House of Lords, the upper chamber of the UK political system. I wrote this, and decided I might as well put it on Samizdata as well:

The original post applauded the fact that the House of Lords, which is not elected by anyone, but composed of inheritors and favourites of governments, is to try and block the result of a democratic referendum in which more people voted than in any election since 1992. The enormity of this should give us pause. I find it mind-boggling that it is being contemplated.

The post claimed the referendum is illegal. No grounds are given as to what supposed laws were broken by holding this referendum. None. I’d be grateful if someone could give a law that was broken to justify the claim.

One can argue that the Leave side told lies (the same applies with some of the Remain side, by the way, as they often exaggerated the effects of Leave), but disliking the conduct of those in a referendum does not invalidate the result or render it void. Some Leavers may indeed be bigots, fools, or whatever. Quite a few Remainers are hardly models of logical thought, either, from my experience. If you claim that people voted without full knowledge of the consequences, that could be used to invalidate all elections, and be an excuse for dictatorship of supposed Platonic philosopher kings.

It is quite obvious to me that, when stripped of any flimflam, that a lot of those who wanted to stay in the EU have a low view of most of their fellow citizens, and wish they should be prevented from voting on anything of significance. There are uncertainties ahead; there are also uncertainties of remaining in the EU, particularly given the weak nature of the eurozone and the continued terrible economic and financial problems of Southern Europe.

The House of Lords is an anachronism, but it is at least easier for the UK to reform such a chamber, as it should, than for 28 members of the EU to change the structures of the EU. (I think the HoL should be an elected chamber, maybe by PR, or some other approach.) I think it is good to have an upper chamber to act as a brake on the Commons; all good political systems of ordered liberty need checks and balances. (The US Founding Fathers understood this.) Blocking the results of a referendum, however, is not a step to be taken lightly.

The European Union has been a collection of nation states, but is clearly moving towards full statehood, and the eurozone cannot really work without this to make fiscal transfers, etc, acceptable (consider the rows between Greece and Germany, etc). Such an outcome is not what most Britons want, including, I imagine, some of those who voted Remain. There is no broad mandate for the UK to become part of a European state.

The UK is a parliamentary democracy, and referendums should be used sparingly, and only on matters of overwhelming constitutional importance. The fine details must remain with parliament. The fact remains, however, that the outcome of the referendum, while not overwhelming, is clear enough: Leave.

I may be informed mostly about investment and financial issues in the EU, rather than politics, (I used to be a full-teim political correspondent) but my reporting on the EU and its financial regulations gives me a good vantage point on seeing how the EU works on a daily basis – I have covered the creation of god-knows how many directives over the past 20-plus years (gulps!) and it is clear that despite some good points, it is a centralising, bureaucratic and in too many cases, unaccountable body. It is not, I believe, reformable because too many countries want to keep it as it is. Cameron tried to get concessions and he failed.

Paolo Barnard

Italian journalist Paolo Barnard thinks Brexit is just great for Britain and hopes it spreads.

I’d be interested to know how widespread this view is and how respected Mr Barnard is in Italy.

Samizdata quote of the day

A major power centre has been challenged and almost by definition power centres have some control over the public narrative. For decades EU apologists have wielded their immense budget and nomination powers to promote people with the “right” attitude and projects with the “right” purpose. Simultaneously a highly skewed PR narrative has been dished out so incessantly (complimentary of unaware taxpayers) that numerous voters now confuse this narrative with the truth. This is why so many EU apologists genuinely seem to perceive the EU as a force for everything worthwhile, and every EU-critic as either dumb, a xenophobic throwback or misled by the PR-narrative of the other side.

Mark Brolin

It is such a shame, though, that the term “metropolitan liberal” is used here. I like to think I am a liberal in the John Locke/Ludwig von Mises use of that fine word, and also glory in living in the greatest metropolis on earth – London. It is one of those terms that is in danger of becoming hackneyed. Stop it.

Samizdata quote of the day

The statistical correlation between both age and relatively low levels of education, on the one hand, and a vote to leave on the other, was much remarked upon, not only in Britain but throughout Europe and the rest of the world. Age and lack of education were usually taken by commentators as a proxy for stupidity. The majority vote to leave was therefore a triumph of stupidity: for those who vote the right way in any election or referendum have opinions, while those who vote the wrong way have only prejudices. And only the young and educated know what the right way is.

While age is certainly not a guarantee of political wisdom, the ever-increasing experience of life might be expected to conduce to it. But in the wake of the vote, there were even suggestions that the old should have no vote because they wouldn’t have to live as long with the consequences of it. The reaction to the referendum exposed the fragility and shallowness of that each person’s vote should count for same.

The relation between political wisdom and levels of education is far from straightforward. It was educated people who initiated and carried out the Terror in the French Revolution. The Russian Revolution, and all the great joy that it brought to the Russian people, was the denouement of decades of propaganda and agitation by the educated elite. There was no shortage of educated people among the Nazi leadership. And the leaders of the Khmer Rouge were also relatively highly-educated, as it happens in France. The founder of Sendero Luminoso, who might have been the Pol Pot of Peru, was a professor of philosophy who wrote his doctoral thesis on Kant.

Theodore Dalrymple

Surge in support for EU on the continent… say polls

… and we all know how reliable and objective polls are, right?

“Brexit shocked people in the EU,” Francois Kraus, head of the political and current affairs service at IFOP, told Reuters on Wednesday.

“Seeing the Eurosceptics’ dream come true must have triggered a reaction in people who usually criticise the EU and blame it for decisions such as austerity measures.

“But when people realise the real implications of an exit, there’s new-found support for the European project,” he said.

Ah that magical term “austerity“. Taxing people less so that they get to spend their own money, rather than the government spending it, is not “austerity”. And there I was thinking keeping more of my own money was “abundance” rather than “austerity”. Go figure.

“With Brexit, the stagnant pool has been replaced by a running stream …”

Andrew Kennedy writes at Conservative Home about how the Conservative Party has seen a post-Brexit surge in membership. Commenters point out that the same thing has happened in the other British political parties. But why? None of the parties performed in recent weeks in a particularly attractive manner, so what’s happening?

I think that commenter David Webb, a recent (re)joiner of the Conservative Party, nails it:

I rejoined post-referendum because of a feeling that politics mattered again. Within the confines of the EU, nothing much was worth debating, as nothing much could be changed. Apart from the continuous drift to the bureaucratic European superstate, inertia ruled.

With Brexit, the stagnant pool has been replaced by a running stream … that’s not to say everything will be wonderful, but once again ideas count, and things can get done.

But then, I would think that David Webb nails it, because I said something very similar in my posting here at the time when the referendum result was becoming clear. I didn’t say that all the political parties would now have a membership surge, but I could have and should have, because it was the logical thing to deduce from what I was then realising. Political debate matters again, not just for me and for all those who think as I do, but for everyone with any sort of political opinion.

As David Webb says, “ideas count” means that bad ideas also now count for somewhat more than they did, unless they are the bad ideas that the EU stood for and imposed upon us, in which case they now count for slightly less.

It will be interesting – and no doubt in some ways rather scary – to see what British public opinion now consists of, given that for the last few decades much of it has been sedated by our EU membership. First out of the blocks were the racists, who perhaps imagined that Britain voting Leave meant that all the bloody foreigners now had to leave.

But what other political ideas will emerge? As I also said in that earlier posting: good times for blogs like Samizdata, where our good ideas will be celebrated anew and the bad ideas of others will be denounced. Again, speaking for myself, I find that the urge to blog is now stronger. Because it will count for a bit more than it did.

Perhaps the most important next discovery about another bit of British public opinion will concern the forthcoming Labour leadership contest. Labour has also, see above, had a post-Brexit surge in membership. But are those new members yet more Corbyn supporters, or are they anti-Corbynists, wanting a nicer and more traditional Labour Party? My guess is that the Labour leadership contest will be closer than it was last time around, with quite a few who voted for Corbyn last time voting against Corbyn this time around, but not close enough to unseat Corbyn. The Labour collapse will continue. But, what do I know? We shall see.

How will we know that we have left the European Union?

When it comes to actually doing Brexit – as opposed to merely voting for it – there appear to be a myriad of options. I do not know precisely how many there are but when three years ago the Institute of Economic Affairs held a competition to find the best way they were not short of entries. Worse still there are many people in positions of power who would very much prefer it if the UK did not leave the EU. If they fail to achieve their aim I am sure that some will try to create a situation where the UK has the appearance of independence but none of the reality.

So, how will we know when we have truly left as opposed to merely having left on paper? Here are a few tests:

  1. Is it possible to buy good in pounds and ounces, feet and yards?
  2. Can train operators also manage track?
  3. Have those annoying cookie notices disappeared?
  4. Are Google search results once again uncensored?
  5. Are some residents of the European Union denied the right to live and work in the UK?

I should point out that I am not particularly keen on the last one but it is a good test. Free movement within the EU is, after all, one of its fundamental principles.

I am sure the commentariat can think of a few more.

Act I, Scene II. A public place.

The Great Leader

Flourish. Enter CAESAR; ANTONY, for the course; CALPURNIA, PORTIA, DECIUS BRUTUS, CICERO, BRUTUS, CASSIUS, and CASCA; a great crowd following, among them a Soothsayer.

A hundred billion here, a hundred billion there, and pretty soon you’re talking real money

Bloomberg reports:

EU Banks Need $166 Billion, Deutsche Bank Economist Tells Welt

Europe urgently needs a 150 billion-euro ($166 billion) bailout fund to recapitalize its beleaguered banks, particularly those in Italy, Deutsche Bank AG’s chief economist said in an interview with Welt am Sonntag.

“Europe is extremely sick and must start dealing with its problems extremely quickly, or else there may be an accident,” Deutsche Bank’s David Folkerts-Landau said, according to the newspaper.