Beltway Briefing

The top five stories from US politics today.

1. Bill Clinton has passed judgement on the Republic field of candidates, offering praise for Mitt Romney, Jon Huntsman and even Michele Bachmann. On Romney, Clinton said:

Romney's a much better candidate than he was last time, because he's not apologizing for signing the health care bill. He's got another creative way of saying we oughta repeal Obamacare, but that's prob'ly the price of gettin' the nomination.

On Huntsman, the former president said:

"Huntsman hasn't said what he's for yet, but I just kinda like him. [laughter] He looks authentic -- he looks like a real guy. [laughter] I mean, a real human being. I like his family, I like his kind of iconoclastic way. And he was a pretty good governor. And he wasn't a right-wing ideologue.

Clinton also offered surprising praise for Bachmann, and argued that her main strengths are her backstory and the support she gets from the right of the party:

Bachmann's been a better candidate than I thought she'd be, and I don't agree with her on nearly anything. But she's got a very compelling personal story, and she gotta lot of juice, and she turns [on] a lot of those anti-government crowd.

2. A Twitter feed belonging to Fox News announced the assassination of Barack Obama after being hacked by members of the hacking collective Anonymous. The hackers sent out tweets that said: "BREAKING NEWS: President @BarackObama assassinated, 2 gunshot wounds have proved too much. It's a sad 4th for #america. #obamadead RIP". (Just to be clear, he's not dead.)

3. Happy 4th of July! The US is 235 today. To celebrate its birthday, the US is teetering on the edge of default, but there is some good news. The US debt impasse moved forward an inch, when a number of prominent Republicans agreed to the principle of some "revenue raisers" (or tax increases, as they used to be called). John Cornyn, a Senator for Texas, and John McCain, a Senator for Arizona, both revealed that they would happy to see some tax perks removed in order to increase government revenues. Congress has until 2 August to decide whether or not it will increase the US's debt ceiling. If the ceiling is not increase, the US will default. This is bad news if you or your company are reliant on any of the 80m bills the US government pays every month.

4. The Obama administration has made a push for greater fuel efficiency, arguing that US cars made in 2025 should be able to do 56.2 miles to the gallon. The auto industry, however, is less keen on these stringent targets. Obama had previously pushed through targets of 35.5 miles to the gallon as a condition of an industry-wide bailout. As car makers have recovered, their willingness to listen to government diktat has reduced.

5. Herman Cain has joined Newt Gingrich and become the latest Republican candidate to face a spate of resignations from his campaign team in the crucial first caucus state of Iowa. Cain's team is putting an optimistic spin on the walk outs, claiming that it is not a "Newt Gingrich situation" (charming). Cain spokeswoman Ellen Carmichael said: "We look forward to staffing up, and not just there. We're in a great financial position to continue to expand." Y'see, staff walkouts aren't a blow, they're an opportunity. I suppose you have to be an optimist by nature on Cain's campaign.

 

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After Article 50 is triggered, what happens next?

Theresa May says Article 50 will be triggered on 29 March. The UK must prepare for years, if not decades, of negotiating. 

Back in June, when Europe woke to the news of Brexit, the response was muted. “When I first emerged from my haze to go to the European Parliament there was a big sign saying ‘We will miss you’, which was sweet,” Labour MEP Seb Dance remembered at a European Parliament event in London. “The German car industry said we don’t want any disruption of trade.”

But according to Dance – best known for holding up a “He’s Lying” sign behind Nigel Farage’s head – the mood has hardened with the passing months.

The UK is seen as demanding. The Prime Minister’s repeated refusal to guarantee EU citizens’ rights is viewed as toxic. The German car manufacturers now say the EU is more important than British trade. “I am afraid that bonhomie has evaporated,” Dance said. 

On Wednesday 29 March the UK will trigger Article 50. Doing so will end our period of national soul-searching and begin the formal process of divorce. So what next?

The European Parliament will have its say

In the EU, just as in the UK, the European Parliament will not be the lead negotiator. But it is nevertheless very powerful, because MEPs can vote on the final Brexit deal, and wield, in effect, a veto.

The Parliament’s chief negotiator is Guy Verhofstadt, a committed European who has previously given Remoaners hope with a plan to offer them EU passports. Expect them to tune in en masse to watch when this idea is revived in April (it’s unlikely to succeed, but MEPs want to discuss the principle). 

After Article 50 is triggered, Dance expects MEPs to draw up a resolution setting out its red lines in the Brexit negotiations, and present this to the European Commission.

The European Commission will spearhead negotiations

Although the Parliament may provide the most drama, it is the European Commission, which manages the day-to-day business of the EU, which will lead negotiations. The EU’s chief negotiator is Michel Barnier. 

Barnier is a member of the pan-EU European People’s Party, like Jean-Claude Juncker and German Chancellor Angela Merkel. He has said of the negotiations: “We are ready. Keep calm and negotiate.”

This will be a “deal” of two halves

The Brexit divorce is expected to take 16 to 18 months from March (although this is simply guesswork), which could mean Britain officially Brexits at the start of 2019.

But here’s the thing. The divorce is likely to focus on settling up bills and – hopefully – agreeing a transitional arrangement. This is because the real deal that will shape Britain’s future outside the EU is the trade deal. And there’s no deadline on that. 

As Dance put it: “The duration of that trade agreement will exceed the life of the current Parliament, and might exceed the life of the next as well.”

The trade agreement may look a bit like Ceta

The European Parliament has just approved the Comprehensive Economic and Trade Agreement (Ceta) with Canada, a mammoth trade deal which has taken eight years to negotiate. 

One of the main stumbling points in trade deals is agreeing on similar regulatory standards. The UK currently shares regulations with the rest of the UK, so this should speed up the process.

But another obstacle is that national or regional parliaments can vote against a trade deal. In October, the rebellious Belgian region of Wallonia nearly destroyed Ceta. An EU-UK deal would be far more politically sensitive. 

The only way is forward

Lawyers working for the campaign group The People’s Challenge have argued that it will legally be possible for the UK Parliament to revoke Article 50 if the choice is between a terrible deal and no deal at all. 

But other constitutional experts think this is highly unlikely to work – unless a penitent Britain can persuade the rest of the EU to agree to turn back the clock. 

Davor Jancic, who lectures on EU law at Queen Mary University of London, believes Article 50 is irrevocable. 

Jeff King, a professor of law at University College London, is also doubtful, but has this kernel of hope for all the Remainers out there:

“No EU law scholar has suggested that with the agreement of the other 27 member states you cannot allow a member state to withdraw its notice.”

Good luck chanting that at a march. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.