Biodun Iginla, BBC News

Biodun Iginla, BBC News

Thursday, March 30, 2017

The Trump presidency is in a hole--an analysis

The White House
by Melissa Gruz and Biodun Iginla, Political News Analysts,  The Economist Intelligence Unit, Washington DC

And that is bad for America—and the world
DONALD TRUMP won the White House on the promise that government is easy. Unlike his Democratic opponent, whose career had been devoted to politics, Mr Trump stood as a businessman who could Get Things Done. Enough voters decided that boasting, mocking, lying and grabbing women were secondary. Some Trump fans even saw them as the credentials of an authentic, swamp-draining saviour.
After 70 days in office, however, Mr Trump is stuck in the sand. A health-care bill promised as one of his “first acts” suffered a humiliating collapse in the—Republican-controlled—Congress (see Lexington). His repeated attempts to draft curbs on travel to America from some Muslim countries are being blocked by the courts. And suspicions that his campaign collaborated with Russia have cost him his national security adviser and look likely to dog his administration (see article). Voters are not impressed. No other president so early in his first term has suffered such low approval ratings.

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It is tempting to feel relief that the Trump presidency is a mess. For those who doubt much of his agenda and worry about his lack of respect for institutions, perhaps the best hope is that he accomplishes little. That logic is beguiling, but wrong. After years of gridlock, Washington has work to do. The forthcoming summit with Xi Jinping, China’s president, shows how America is still the indispensable nation. A weak president can be dangerous—picture a trade war, a crisis in the Baltics or conflict on the Korean peninsula.
The business of government
Mr Trump is hardly the first tycoon to discover that business and politics work by different rules. If you fall out over a property deal, you can always find another sucker. In politics you cannot walk away so easily. Even if Mr Trump now despises the Republican factions that dared defy him over health care, Congress is the only place he can go to pass legislation.
The nature of political power is different, too. As owner and CEO of his business, Mr Trump had absolute control. The constitution sets out to block would-be autocrats. Where Mr Trump has acted appropriately—as with his nomination of a principled, conservative jurist to fill a Supreme Court vacancy—he deserves to prevail. But when the courts question the legality of his travel order they are only doing their job. Likewise, the Republican failure to muster a majority over health-care reflects not just divisions between the party’s moderates and hardliners, but also the defects of a bill that, by the end, would have led to worse protection, or none, for tens of millions of Americans without saving taxpayers much money.
Far from taking Washington by storm, America’s CEO is out of his depth. The art of political compromise is new to him. He blurs his own interests and the interests of the nation. The scrutiny of office grates. He chafes under the limitations of being the most powerful man in the world. You have only to follow his incontinent stream of tweets to grasp Mr Trump’s paranoia and vanity: the press lies about him; the election result fraudulently omitted millions of votes for him; the intelligence services are disloyal; his predecessor tapped his phones. It’s neither pretty nor presidential.
That the main victim of these slurs has so far been the tweeter-in-chief himself is testament to the strength of American democracy. But institutions can erode, and the country is wretchedly divided (see article). Unless Mr Trump changes course, the harm risks spreading. The next test will be the budget. If the Republican Party cannot pass a stop-gap measure, the government will start to shut down on April 29th. Recent jitters in the markets are a sign that investors are counting on Mr Trump and his party to pass legislation.
More than anything, they are looking for tax reform and an infrastructure plan. There is vast scope to make fiscal policy more efficient and fairer (see article). American firms face high tax rates and have a disincentive to repatriate profits. Personal taxes are a labyrinth of privileges and loopholes, most of which benefit the well-off. Likewise, the country’s cramped airports and potholed highways are a drain on productivity. Sure enough, Mr Trump has let it be known that he now wants to tackle tax. And, in a bid to win support from Democrats, he may deal with infrastructure at the same time.
Yet the politics of tax reform are as treacherous as the politics of health care, and not only because they will generate ferocious lobbying. Most Republican plans are shockingly regressive, despite Mr Trump’s blue-collar base. To win even a modest reform, Mr Trump and his team will have to show a mastery of detail and coalition-building that has so far eluded them. If Mr Trump’s popularity falls further, the job of winning over fractious Republicans will only become harder.
Were he frustrated in Congress, the president would surely fall back on areas where he has a free hand. He has already made full-throated use of executive orders and promises to harness the bureaucracy to force through his agenda. In theory he could deregulate parts of the economy, such as finance, where the hand of government is sometimes too heavy. Yet his executive orders so far have been crudely theatrical—as with this week’s repeal of Barack Obama’s environmental rules, which will not lead to the renaissance of mining jobs that he has disingenuously promised coal country (see article). It is the same with trade. Mr Trump could work through the World Trade Organisation to open markets. More probably, the economic nationalists on his team will have the upper hand. If so, America will take a bilateral approach, trade protection will grow and foreign policy will become more confrontational.
The character question
The Americans who voted for Mr Trump either overlooked his bombast, or they saw in him a tycoon with the self-belief to transform Washington. Although this presidency is still young, that already seems an error of judgment. His policies, from health-care reform to immigration, have been poor—they do not even pass the narrow test that they benefit Trump voters. Most worrying for America and the world is how fast the businessman in the Oval Office is proving unfit for the job.
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Brexit begins--an analysis

by Emily Straton and Biodun Iginla, Political News Analysts, The Economist Intelligence Unit, London

Britain’s brutal encounter with reality

Time to be honest about the trade-offs ahead
NINE tumultuous months after Britons voted to leave the European Union, the real Brexit process is at last under way. Theresa May’s dispatch of a letter to the European Council on March 29th, invoking Article 50 of the EU treaty, marked the point at which Britain’s withdrawal from the union became all but inevitable. For half the country’s population this was a moment to celebrate; for the other half, including this newspaper, it marked a bleak day. The future of both camps—and of the EU itself—now depends on what Mrs May does next.
The negotiations are sure to be difficult (see article). Time is short, since Article 50 comes with a two-year deadline. The task of unwinding Britain’s membership of the club is fearsomely complex. Neither side is well prepared. In Britain, where Brexit increasingly resembles a faith-based initiative, voters have been given wildly unrealistic expectations of the Utopia ahead. Their first contact with the reality of losing preferential access to their main market will be traumatic. Unless Mrs May can persuade the Brexiteers on her own side that they must accept concessions, Britain may end up flouncing out of Europe without any deal at all.

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Cruising for a bruising
The timetable is tighter even than it looks. The sides may spend weeks arguing over process. The EU wants to fix the terms of the Article 50 divorce, covering such matters as the rights of citizens resident in other countries and Britain’s multi-billion-euro exit bill, before starting work on a future trade deal; Mrs May wants to negotiate on everything at once. Nothing much will be agreed on before the German election in September. At the end of it all, ratifying the deal will take six months. That leaves little more than a year for the talks themselves.
Mrs May’s priority is to fulfil the Leave campaign’s promise to “take back control” by ending the free movement of EU citizens to Britain and the jurisdiction of the European Court of Justice (ECJ). She has acknowledged that this means leaving the EU’s single market. But leaving would be a mistake. Even if it takes control of immigration, Britain will not be able to cut the numbers much without damaging the economy, as ministers are slowly realising. And the government is wrong to claim that there exists some relationship with the single market that has all the benefits of membership with none of the costs.
It is true that many Britons backed Brexit because they wanted to cut immigration and regain sovereignty, but they did not vote to make themselves poorer—as Mrs May’s “hard Brexit” will. Her government has been characterised by U-turns and her letter this week was more emollient than some of her earlier statements. Even so, in thrall to Brexiteering backbenchers and the Eurosceptic press, she is unlikely to change course now.
Mrs May is not just making the wrong choices, but also downplaying awkward trade-offs. By promising barrier-free access to the single market while stopping EU migrants and ending the ECJ’s jurisdiction, she is still telling Britons they can have their cake and eat it. Although she concedes that exporters to the EU will have to obey EU rules, the more Mrs May insists on controlling EU migration and escaping the ECJ, the less barrier-free will be Britain’s overall access to the single market. This is not just because free movement of people is a condition for the EU, nor because it will be hard to secure tariff-free access for trade in goods, something both sides can readily agree on. It is because the biggest obstacles swept away by the single market are not tariffs or customs checks, but non-tariff barriers such as standards, regulations and state-aid rules. Unless Britain accepts these, which implies a role for the system’s referee, the ECJ, it cannot operate freely in the single market—as even American firms trading in the EU have found.
Boxed into a corner
The most dangerous of Mrs May’s illusions has been her claim that no deal is better than a bad deal. Her letter this week steps back from this notion, but only a pace. To revert to trading with the EU only on World Trade Organisation (WTO) terms would cause serious harm to Britain’s economy. It would mean the EU imposing tariffs plus a full panoply of non-tariff barriers on almost half Britain’s exports. No big country trades with the EU only on WTO terms. An acrimonious break-up would make it harder to co-operate in such areas as foreign policy and defence. And it would surely increase the risk of Brexit triggering Scotland’s exit from the United Kingdom.
Mrs May needs not merely to soften her tone, as she has started to do this week, but to lower expectations. Instead of threatening to undercut her European partners by building an unregulated Singapore-on-Thames (something that, despite its appeal to free-traders, would horrify most Brexit voters), or hinting that Britain might co-operate less fully on security, or claiming that the EU needs Britain more than the other way round, she should accept that in these negotiations she holds the weaker hand. She should hence be more flexible over payments into the EU budget, a subject her letter skates over.
Because negotiating a full free-trade deal is certain to take more than two years—no country has concluded one with the EU in so short a time—she should accept another consequence: that transitional arrangements will be needed to avoid “falling off a cliff” in March 2019. Her letter talks airily of “implementation periods”, but does not acknowledge how hard these may be to sort out. A proper, time-limited transition might mean prolonging free movement of people and the rule of the ECJ, but that price would be worth paying for a better Brexit.
The softer tone of Mrs May’s letter might, with luck, encourage her EU partners to be more accommodating. So far they have reacted to threats from London in kind, talking up the exit bill, insisting that Britain ends up being worse off outside the club than inside and digging in over terms for co-operating in foreign and security policies. There is a possibility of a deal between Britain and the EU that minimises Brexit’s harm. Unfortunately, in a negotiation against the clock where both sides start so far apart, there is also a big risk of one that maximises harm instead.
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Netanyahu vows to move ahead on new settlement plan



by Jenny Feder and Biodun Iginla, France24, Jerusalem

    © AFP/File | Israeli settlement building in east Jerusalem and the West Bank is seen as illegal under international law and a major obstacle to peace as they are built on land the Palestinians see as part of their future state

    JERUSALEM - 
    Prime Minister Benjamin Netanyahu vowed Thursday to move ahead on a plan to create Israel's first new settlement in the occupied West Bank in more than 20 years despite international concern over the issue.
    "I promised to create a new community and we are going to respect that commitment and create it today," Netanyahu said in a statement from his office ahead of an expected meeting of his security cabinet in the evening.
    He said details would be released in the coming hours.
    Netanyahu has said previously he intends to build a new settlement for residents of a wildcat Jewish outpost in the West Bank known as Amona, which was evacuated under court order in February.
    An Israeli government-sanctioned settlement would be the first official new settlement in more than 20 years and would surely draw international criticism.
    Construction in recent years has involved expanding existing settlements in the West Bank, with many countries warning it is gradually eating away at any chance of a two-state solution with the Palestinians.
    Netanyahu has been in discussions with US President Donald Trump's administration on how to move ahead with settlement building.
    Trump, while pledging unstinting support for Israel, has also called on Netanyahu to "hold back on settlements for a little bit" while his administrations looks for ways to restart Israeli-Palestinian talks.
    Settlements are seen as illegal under international law and major stumbling blocks to peace as they are built on land the Palestinians see as part of their future state.