EU pandering for British companies to move offices to EU states while also threatening them with contract cancellations

The Leave vote won the EU Referendum - now for the UK to leave the EU (Brexit) it has to sign Article 50 of The Lisbon Treaty - mocked up here - about to sign.

If it weren’t for the tens of billions of dollars EU states give to the bureaucracy in Brussels each year, the European Commission would be little more than a paper tiger.  However, until more continental governments stand up to growing behemoth that is now threatening their very sovereignty, they will have little choice but to either disconnect from the Union like Britain is doing, or become a vassal state to a small group of unelected technocrats.

Thus it is interesting to watch how the European Commission is treating the UK during the early stages of Brexit talks, and how none of the other member states are saying a word to defend the second largest economy in the Union.  And instead they are simply standing by in silence as the EC both panders and threatens companies in the UK that do business with other EU nations.

Diplomatic relations between the UK and EU are fast approaching zero degrees Kelvin.

One day after Theresa May not only cemented, but allowed herself Brexit negotiating breathing room with her stunning, yet cunning decision to announce snap elections which would only boost the leverage of her party, Brussles has retaliated and as the FT reports, Brussels is starting to “systematically shut out British groups from multibillion-euro contracts” while urging companies to migrate to one of the 27 remaining EU members.

The Brussels note suggests that tensions between the UK and EU mey deteriorate to the point where even Bremainers may turn on Brussels:

In an internal memo seen by the Financial Times, top European Commission officials have told staff to avoid “unnecessary additional complications” with Britain before 2019, highlighting an administrative chill that is biting even before Britain leaves the bloc.

It explicitly calls on EU staff to begin encouraging the UK-based private sector to prepare for the “legal repercussions” of Brexit and consider the need “to have an office in the EU” to maintain their operating permits. Agencies are also told to prepare to “disconnect” the UK from sensitive databases, potentially on the day of Brexit. – Zerohedge

Ironically, it is not as if the UK were completely leaving the confines of Europe as they still will have a significant stake in defending other EU nations under the current NATO defense agreement.  And as for trying to succor or coerce British businesses into moving their offices and/or HQ to remaining EU states if they want to continue conducting business in the Union, that in itself is a form of extortion since the EU doesn’t require trade partners like China or India to do the same if they want to engage in commerce with the European coalition.

What is really at stake in the ongoing Brexit talks is the potential for a great loss of power for thousands of unelected technocrats who have striven to usurp the sovereignty from countries in the European Union, and to make a statement to anyone else who might consider the thought of escaping out from under the thumb of their tyrannical rule.  And they are being quite cleaver in trying to entice multi-national corporations to join their side of the argument since these entities by their very nature have little loyalty to their home countries.

Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.comRoguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.

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