Brexit Deal: Look at Israel
The small Middle Eastern nation maintains a strong economy whilst in an unenviable geopolitical location
WHEN IT COMES TO BREXIT, it is hard to distinguish what is part of Project Fear - Remoaners attempt to capitalise on irrational fear to promote their EU agenda- or what is actually truth.
This is partly because no country has ever seceded from the EU, and therefore there is no example to draw parallels to.
However, it has always occurred to me that of all the non EU European nations we have looked at that have relations with the EU via the EEA, EFTA, or other trade organisations such as the CEFTA, we have never looked at probably the best example of a country that has a strong economy whilst outside of EU.
Yes, it’s Israel. Yes it may not geographically be located within Europe, but Cyprus is not geographically located in Europe and yet retains membership of the 27 member bloc.
In recent days and weeks, we have seen speculation of the effects
of a no deal, ranging from shortage of food and medicine, to martial law being declared.
Israel is a country that maintains a strong economy whilst not a member of a trade organisation other than the WTO.
Like the UK, Israel is not rich in natural resources. It is a tiny nation. It does not have virtually any trade relations with its neighbours due to the ever contentious hostility between the Arab world and Israel. But despite this, it has managed to make it into the list of the 20th highest economies. It also maintains trade deals with the EU, Africa, China and the US and other non EU countries such as Ukraine.
Over a quarter of British food is imported from the EU, and like Israel, it also imports a large number of products from outside of the country. It’s significantly smaller than the UK, and the population also reflects this.
The UK should follow the direction of Israel and invest heavily in the technology sector. Many technology firms have already left the UK. If you haven’t already read my idea of LTEZs (Low Tax Economic Zones), go ahead and read it, as this could be used to lure firms into the UK and encourage British startups.
We should encourage innovation as this has proved a key strength for Israel, using technology to help agriculture thrive. The desert conditions of Israel would make growing many crops impossible, but the Israelis have developed technology so grass can grow in arid areas.
A no deal scenario would be best avoided. The UK could perhaps join the EEA where it would be able to negotiate trade deals with the EU. However, this would prove contentious with the “free movement of people” clause.
Brexit will not be a disaster if it done correctly. It will be a crisis if it is implemented wrongly. It will be a liberation if it is what the people voted for.
Read about LTEZs (proposed by the Workers' Union Party)
A LTEZ is a “zone” located in various strategic locations in cities and towns where economic growth is forecasted. The concept of an LTEZ would be to encourage British companies and potentially foreign investors to invest in the UK, and pay much less tax than a normal company would providing they guaranteed “X” number of jobs and X % of growth to the UK economy. It would also be expected they invested in the local area, providing facilities such as affordable housing, and investing in transport, healthcare and education.
The aim of an LTEZ would be to promote the UK as an attractive place for investors whilst maintaining the WUP’s position of prioritising social welfare. LTEZs would contribute to the economy whilst also allowing investment in local infrastructure to benefit the local population.
LTEZs would be designed for removing the current London centred economy and helping other cities develop. London is currently a primate city - and it is highly likely it will remain so due to it's massive population. But LTEZs would diversify industry and business so that other cities can grow and provide thousands of jobs. For those companies that would want to invest in the UK but would like a London HQ for example, this would be possible, but a LTEZ in London may be centred on the outskirts of London where there is slow growth and investment.
The identified potential zones for LTEZs are the following
- Northwest London
- Southwest London
The largest LTEZs would most likely be in
These would mean that these five cities would be some of the most economically developed in the UK and wold compete for London in terms of job opportunity and economic investment. The success of countries such as Germany is they do not have for example a “Berlin” centred economy. Their major financial centre is actually Frankfurt - perhaps this change can be replicated in Britain.