As the Brexit process grinds on, attention elsewhere in Europe is
turning to the political dynamics of the EU without one of its most
reliably free-market member states.
For many years, the UK, both because of its economic heft and the often
under-appreciated skills of its civil servants, has led an informal
economic bloc pushing for liberalisation in the single market and
external trade. Some members, usually including the Nordic nations, have
frequently relied on the UK to persuade other states.
A new counterweight to economic mercantilism is sorely needed. EU member
states have, regrettably, been moving in a more protectionist direction
in recent years. They have, for example, rewritten their laws on
antidumping and antisubsidy duties, giving themselves more leeway to
impose emergency blocks on imports.
Germany, traditionally the swing voter in the EU, has shifted more
towards the protectionist end of the spectrum, dominated by France and
Italy.
In theory, the accession of Emmanuel Macron as France’s president, with
his talk of freeing up markets to boost growth, should shift the centre
of gravity back towards the liberal side.
In practice, Mr Macron’s commitments to liberalisation tend to stop at
the French frontier. In order to buy some political space for his
changes to labour law, Mr Macron has taken restrictive positions on
cross-border issues including migration, foreign direct investment and
signing trade deals that will endanger France’s perennially vocal
farmers.
Read more: A daunting task for the EU’s economic liberals
