Van Gelis
Middle East

BREXIT a Tale of Two Options… or a US Trojan Horse for TTIP? Part Two

Brexit offers hope in destroying the process, but there is no guarantee that a Leave vote will be implemented based on past performance of EU votes.
14 April 2016

Single European Act and the Myth of ‘Social Europe’ 

The SEA (Single European Act) and its marketing angle (Delors’ plan for a Social Europe) essentially sold the concept of a Big Business reform of the EEC by paying lip service to labour rights and standards across the EU. In reality, it set the foundations to ensure a race to the bottom was codified in EU law[i]. Just as the original EEC was sold to Britain as a way of raising labour standards and democracy (work councils were promised to British labour but instead it got mass sackings and privatisations in the car, steel and coal industries), now the SEA was touted as a solution to Germany’s economic problems and all the regulations were drafted by ministries of Thatcher and Kohl. It codified, in a pan-European level, neoliberalism. This means no state support in utility, transport, rail, road, postal services or communication, with the aim of privatizing education and health, i.e. the rollback of the post war consensus of full employment and state nationalisations.

What essentially occurred was the creation of large private monopolies whose infrastructure and order books had mostly been funded by the state of each country, i.e. the working taxpayer. While German industrial firms, French utility companies, agribusiness and Britain’s financial industry gained throughout this period, Britain was at the cutting edge of further expanding the neoliberal nature of the EU and one can argue that it has never strayed from this path. By alleging labour standards were to be maintained, the SEA was sold to German and French workers and the British TUC (Trade Union Congress) adopted them; but in reality, the Brits and the Germans created an EU in their past image: a never expanding, all devouring corporate Empire that would only rest when it took over the planet.

Maastricht and Lisbon Treaties

The Single European Act which was promoted and instigated by Thatcher had to be sold in Britain. Maastricht enshrined in EU law the core five freedoms of the EU: freedom of movement, services, capital, labour and business. Almost four out of every five laws emanate from Brussels and the Treaty of Lisbon, which essentially turned the EU into a Superstate. When Ireland didn’t agree it had to vote twice to get the …right result. In historical terms nation states are defunct and all the gains of the bourgeois democratic revolutions against the autocracy in France, Britain, etc. have been thrown out of the window. One state cannot undo the decisions of the other 27. There is no chance in a million years we would have 28 states in full agreement against the neoliberal order.

The EU in its present form and via its structures, almost all of which are unelectable and appointed in the modern equivalent of Gaulieters, is a top-down entity whose central core is: anti-socialism, pro-big business and ultra-reactionary. The eventual aim is one world currency and one world government and it is this aim the globalist elites work for in Europe and in each party that has representation in national Parliaments. National sovereignty no longer exists and the democratic right of electing governments that go against Brussels’ rules (max 60% public debt, inflation no more than 1.5% of Euro average, national budget deficit max 3% of GDP) does not exist. Case in point was the election of Syriza in Greece, which was greeted with no change whatsoever in economic policy other than …further austerity.

‘British Jobs for British Workers’

The election of Blair in 1997 and the opening of Britain’s borders via student immigration from non-EU countries, as well as being first to accept the East European Accession states in 2004, meant that by 2007 Blair’s finance leader and subsequent PM, Brown, circulated the pseudo protectionist and nationalist slogan ‘British Jobs for British Workers’ to try to arrest the haemorrhaging of support to the Labour Party from Britain’s industrial/post-industrial heartlands, where a splinter from the Tory party started to gain a following (UKIP). There never was any intention in prioritising jobs for British workers, nor could that be allowed under EU laws[ii].

Indeed, the EU codified in law via directives like the one at Bolkenstein and via court rulings in cases such as Laval, Viking and Ruffert , that wages and conditions could legally be undermined in any nation member state by allowing corporations to import workers from states with lower national pay. In other words, the primary purpose of the EU in relation to freedom of movement of workers was to drive wage rates down to the lowest rate in the EU, which was at the moment, Bulgaria’s[iii].

2010 IMF & Euro crash

The Euro came into motion as a fully-fledged replacement currency from 1st January 2002 in a series of countries, although it had been in prototype existence via ERM (European Exchange Rate Mechanism) for almost a decade before. Since its inception 18 countries have joined out of 28 in the EU. Its main stumbling block has been Britain’s non-entry despite the fact that both the Labour Party and the Conservative leaders (Blair and Cameron) have supported it.

Once the Wall St. crash led to global turbulence in relation to the position of the Dollar, a mechanism was required to control money flows away from the US and money which would have gone to the US by controlling the rate of the Euro. The IMF was brought in via the back door by the US born and paid for ex-President of Greece Papandreou (who is also President of the European Social Democrats body, which the Labour Party belongs to) and then the economic devastation of Greece occurred. Various countries around the world who also wanted to stop trading in Dollars were also brought to heel, e.g. Iraq and Libya. The IMF acts as a surrogate child to US economic policy. Once they are in, you stand no chance as they will take the economy in the direction they see fit and destabilise currencies to their advantage.

The Euro was initially at almost parity with the Dollar starting off at 90c to $1. It then went to a high the years after the Wall St. Crash reaching almost 1 Euro to $1.5. This process had to be arrested, so a small crisis in a small state of the EU, i.e. Greece with less than 2% of EU GDP, had to be magnified beyond all proportion. The crisis had to go nuclear to save the Dollar and no other country in the EU faced 40-50% combined wage and pension cuts with official unemployment going from 11% to 28% whilst unofficially at around 35-40%

The Euro crash, which led to Depression economics being applied to a series of countries, led to the opposite development for the UK. It now became a safe haven for money laundering rackets from all the Euro countries. Massive amounts of money from Greece, Italy, Spain, etc. were invested in the London property market alongside Russian, Chinese and other Afro-Asian oligarchs[iv]. The rise in property prices spiralled a new building boom and thus the demand for labour shot through the roof. Just as prior to the Wall St. crash and the entrance of a number of East European  Accession states, i.e. Poland, Czech Republic, Slovakia, and Hungary, were allowed to work in Britain prior to France and Germany, after the Wall St. crash and the onset of the Euro crash tens of thousands started arriving in the UK.

Euro Crash Impact on the UK

As the UK imports more goods from Europe than the other way round and it still maintains its own currency and can print money like a drunken sailor spending it on a night out, it has been able to support a property based economic boom almost similar in form if not in size with that which existed after 1997 until the Wall St. Crash of 2007/8.

Britain pioneered the financialisation of everything, adopting the US Wall St. model whereby wealth creation no longer meant creating long-term value from productive activity, but generating short-term value using financial re-engineering, which was only possible because of a massive increase in the money supply (debt financing). Hence, house prices became a form of collateral in ensuring ever increasing living standards, without the recourse to higher wages which had remained essentially static, while all other prices had gone up (housing,  transport, utilities, etc.).

Whilst it was possible on a worker’s wage to buy a whole house in central London in the 1970s, now one would have to be a Russian oligarch with a couple of million pounds spare. This new economy, possible primarily due to Britain not adopting the Euro and as a consequence of being the next best thing after America (after the Soviet Union collapsed), allowed a free for all in terms of capital flows, which were then recycled into the property market, which alongside capital growth could also provide rental income, which in many cases was a state subsidy in the form of a housing benefit. In today’s world, one left University with around £50k in debts and for the skilled working class, apprenticeships no longer existed due to the opening up of the EU labour market and the mass importation of labour. According to media reports, in the last 3 years alone 3.3m National Insurance cards have been issued (work permits) and this level of migration has led to massive shortages in school places, lack of affordable flats to rent and notices by a central metro station in London (Victoria) to not use it during rush hour, as the safety of passengers cannot be guaranteed due to …overcrowding[v].

Extreme Centre Imploding 

Hyper globalisation, which in London meant the twin evils of hyperinflation in property prices (i.e. cost of living due to almost all under 50 renting) and the mass importation of labour under both Labour and Tory, led to the rise of a party that emphasised the problem of mass migration (UKIP), and this forced the Brexit Referendum on the Tory party as many of its MPs were ready to jump ship at the last election (only the guarantee by Cameron that a Referendum would occur kept the party from splitting). The fact as well is that 100 Labour seats were under threat from UKIP where they came second, and after Nigel Farage destroyed the Liberals (after debating them on Europe), there is much to play for. The extreme centre parties are imploding over globalisation and nothing can keep them together as the fissures of a split are too great.

26m votes went to the three extreme centre parties in 2010, i.e. around 60% of overall electorate, which was reduced in the following election of 2015 to 22.5m votes,  i.e. around 50% of overall electorate (2015) and 4m to UKIP. Half the Tory MPs (150 out of 300) are for Brexit. A 30-40% swing away from the extreme centre parties if the UKIP vote held would guarantee Brexit. The Liberals have already imploded, the Tory party is already at daggers drawn and is trying to dominate the Brexit campaign by placing the Mayor of London, Boris Johnson, in the Brexit camp (when he never, ever had a history of being anti-EU) in order to save the party in case Brexit wins. The Labour Party, despite having an anti-EU leader, has gone for supporting the EU, which is also absurd as one would assume they would love the disintegration of the Tory Party and Cameron’s government.

Brexit then TTIP?

The TTIP (Transatlantic Trade and Investment Partnership) is about removing all barriers to trade between the EU and the US and undermining the sovereignty of EU member states by increasing power to the large transnational corporations that rule the world. The whole of the EU becomes like Greece in terms of sovereignty. Originally the TTIP was to be called TAFTA – Transatlantic Free Trade Agreement, but bad press over NAFTA meant they had to avoid that name, but its content is identical.[vi]

US pharmaceutical corporations and health corporations have reached the limits of their domestic market expansion. They need to go elsewhere. Britain has gone furthest down the path of privatisation in both the National Health Service and the Education system compared with the rest of continental Europe. No other country on the planet has sold more than 50% of its companies to foreigners.[vii] The UK is the globalists’ wet dream.

Every event that occurs in mainland Europe, from the alleged terrorism in Paris and Brussels to the alleged war refugees arriving in their millions on the shores of Greece, shifts the debate for Brexit. The Stay In camp, known as Project Fear, daily comes out with absolute nonsense. Flights will go through the roof, tampons will be overtaxed, 3m jobs will be lost, all EU migrants overnight will be booted out, all major businesses are for Staying In, stock prices will go up, all the British pensioners will come back from Spain, etc. The list is endless. Almost three months to go. Soon one will be told one will go blind if one votes for Brexit!

Whatever the outcome, and it is too soon to be able to make a realistic prediction, millions are already against the EU Superstate and its domination by unelected Brussels Gauleiters. National economic policy can no longer occur by elected governments (as evidenced by the announced closure of last remaining steelmaking company in the UK, Tata Steel). The mass importation of labour, whether intra-EU or from outside the EU (Mode 4 Agreements, students, fake refugees, etc.), continues unabated, and if the price is to keep the EU juggernaut afloat instead of breaking it apart, things will only get much, much worse. Brexit offers hope in destroying the process, but there is no guarantee that a Leave vote will be implemented based on past performance of EU votes. This could actually be a marriage, whereby having gone on honeymoon many moons ago, there can be no divorce from the Brussels roadshow… so provisional separation may be inevitable, if not predictable, and the breakup of the Conservative party is now upon us.


[ii] ‘British Jobs for British Workers.'