Obama vs. Congress: the re-election campaign begins

With his speech on the jobs bill, Obama has set himself up against the "do-nothing" Congress.

It looks like Barack Obama has launched his re-election campaign. In a speech to Congress, he unveiled the American Jobs Act, and in effect dared Republicans not to pass it.

The bill reaches out to Republicans on many points. Much of it consists of tax cuts, with a $240bn expansion of the cut in payroll taxes promised, as well as a tax holiday for smaller businesses hiring new employees. He also said that Medicare spending needed to be cut. The bill also retains some spending commitments, such as $140bn for modernising schools and repairing roads and bridges.

In his speech, Obama eschewed the soaring rhetoric for which he is famed, instead urging Congress to "pass this jobs plan right away". Initial responses from Republican leaders imply that they are receptive, although it is unlikely they will pass it in its entirety.

With the lowest approval ratings of his presidency, currently floundering in the 40s, Obama faces the dual challenge of shaking off the public perception that he has failed to deliver on the economy, and the intransigence of the Republican-controlled House.

Tactically, this speech adopted a clever position. Obama's own approval ratings may be dipping, but an incredible 82 per cent of the US public think that Congress is doing a bad job. This suggests that the cynical politicking seen during the debt ceiling crisis did not go unnoticed.

Over at the Huffington Post, Howard Fineman suggests that the speech will set the tone for Obama's re-election campaign:

By putting forward a simply-named, to-the-point bill -- the American Jobs Act -- and by challenging Congress to pass it and pass it now, Obama hopes to create a win-win: either the Congress accedes or, as President Truman did in 1948, he can run against the "do nothing" Congress.

This strategy has the potential to be effective, given public frustration with politics in general. With some comments bordering on sarcasm, he presented the debate as a conflict between the majority of voters, and those who believe that "the only thing we can do restore prosperity is just dismantle government, refund everyone's money, let everyone write their own rules, and tell everyone they're on their own."

But the relentlessly confrontational stance that Republicans have so far adopted is not Obama's only problem: there is also the jobs question itself. Analysts predict that the plan, if passed, will encourage growth, but unemployment remains stuck at 9.1 per cent and it is unlikely that this bill -- however well-intentioned -- will substantially change that. However, after weeks of what many viewed as a frustrating lack of action, it is good to see Obama get off the back foot and go in fighting.

 

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

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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.