In a rather strange interview with Reuters, John Redwood (HERE) makes some remarkable comments. He wants to exit the EU "within months" by repealing the 1972 European Communities Act and just notifying the EU we are leaving. He thinks it really is that simple and he may be right although I haven't read of anyone else suggesting anything like this.
He then claims we will keep tariff free access, not contribute to the EU budget and implement border controls. "We shouldn't negotiate over freedom of movement, or getting our money back or having our own laws: We are quite happy with the current tariff-free trading arrangements," he said. I will be amazed if the EU agree to this. It is tantamount to breaking up the EU altogether.
If the EU decide to reject his idea and introduce tariffs, he says they will only average 3.5% and we will retaliate by applying the same tariffs to EU goods entering the UK. This is true but the range of tariffs is between 0% and about 36%, with 10% on cars and exporters will need to supply documentation including certificates of origin which will add to their costs.
And finally, he claims financial organisations will be able to keep the passporting arrangements and so continue to trade inside the EU from London using the "doctrine of equivalence" implicit in something called the Markets in Financial Instruments Directive II (MiFID II). Apparently some bankers agree with this but say the EU decides if equivalence is granted and it has no set timetable, is subject to horse-trading and we would have to accept all future changes to MiFID II.
It all sounds extremely simple - but I wonder if it is. Mr Redwood has been viscerally opposed to the EU all his political life and think he would go for exit no matter what the economic or social cost. He would see the nation totally impoverished and still be unable to admit he was wrong.
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