The EU is terrified that Britain will make a success of Brexit

Now that the EU white paper is out we can see that terms like vassal state, colony and homage were well chosen and that Donald Trump’s doubts are valid. The commitment to a common rule book that includes a pledge to enforce state-aid rules is effectively promising not to try too hard to be economically successful. And yet state aid has hardly been mentioned in the debate.

Freedom from the EU straitjacket gives us the chance to show how an independent people can create prosperity but instead of seizing the day the Government is worried about disrupting integrated EU supply chains, which may involve a car component being made in Italy, then taken to Germany for finishing, before being installed in a car in a UK factory. This remarkably wasteful practice is also environmentally harmful because of avoidable transportation costs and is already being replaced by shorter supply chains.

It makes economic sense for components to be manufactured near the car factory, but there is an initial investment that may involve the Government. Under the white paper, our Government will have to get permission from Brussels before it can support investment in a home-based supply chain and the high-paid jobs that go with it. What will happen when we apply to Brussels for permission to spend our own money? Rival German car manufacturers, some of whom have already shown how unscrupulous they are on emissions testing, will lobby the EU to prevent British investment. Suppressing innovation serves the interests of existing manufacturers but prevents new entrepreneurs from developing the technologies and industries of the future.

Every country that has ever flourished economically achieved its success by wise government policies of investment and support.

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