Vernon Bogdanor writes: ast week, the government set out key elements of its strategy for achieving Britain’s withdrawal from the European Union. It seeks a soft landing to a hard Brexit. It wants a time-limited transition period after March 2019, when Britain is due to leave the bloc. During that period, the government hopes for a “close association with the EU customs union”. When it ends, Britain will leave the customs union but seek “a new customs arrangement” that preserves “the freest and most frictionless trade possible” and Britain will then seek a free trade agreement.

These proposals are beset with ambiguity and difficulty, although the idea of a transitional agreement has been welcomed by business. Brexiters fear – and some Remainers hope – that at the end of the transitional period it will be found to have been so comfortable that it will be extended. In that case, Britain would, to a significant degree, remain in the EU, but as a de facto satellite rather than a participating member.

Remainers put too much faith in the transitional agreement. Business seeks certainty so that new investment can be undertaken without fear that market conditions will radically alter. A transitional agreement cannot provide this. It merely offers a stay of execution. A company seeking to decide whether to invest is not helped by being told that the period of uncertainty, instead of being 18 months, will be prolonged for a further two years. [Continue reading…]