31/12/2016 Dateline London


31/12/2016

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Transcript


LineFromTo

Hello, and welcome to Dateline London's look ahead to 2017.

:00:22.:00:25.

Britain will move calmly towards Brexit, the European Union

:00:26.:00:30.

will solve all its problems with migration, unemployment

:00:31.:00:33.

and insolvent banks, Donald Trump will begin a glorious

:00:34.:00:35.

four years as President, the Middle East will finally be

:00:36.:00:38.

Back in the real world, let's hear what our expert panel think.

:00:39.:00:46.

I'm joined by Stryker McGuire of Bloomberg Markets,

:00:47.:00:48.

Abdel Bari Atwan who is a writer and broadcaster on Arab affairs,

:00:49.:00:51.

Agnes Poirier of Marianne, and Steve Richards who is

:00:52.:00:56.

Britain first, to coin a phrase, and we can all predict that Article

:00:57.:01:02.

50 will indeed be invoked by March, beginning the formal process

:01:03.:01:04.

But where will Brexit, and indeed the EU, be by the end of 2017?

:01:05.:01:11.

With political change in France and Italy,

:01:12.:01:12.

I think 2017 will be much more difficult than this artificial

:01:13.:01:21.

period we've been living through prior to the

:01:22.:01:23.

All kinds of things have been read into what has happened

:01:24.:01:27.

"The UK economy has been better than expected."

:01:28.:01:32.

And so far, the focus has been on the British position.

:01:33.:01:38.

In 2017, we are going to get real, because we will hear

:01:39.:01:46.

And when that becomes clear, I think the dynamic of the internal

:01:47.:01:56.

politics of the Conservative Party, the position of other MPs

:01:57.:02:03.

in the House of Commons, Scotland, will become 100 times more

:02:04.:02:06.

complicated than the position at the end of 2016.

:02:07.:02:14.

So I think Brexit in 2017 is going to become very,

:02:15.:02:17.

very difficult for Theresa May in particular, and the

:02:18.:02:20.

Can I make a prediction about 2017, which I rarely do, which is that

:02:21.:02:27.

Brexit will be top of the news agenda in Britain, and all

:02:28.:02:30.

It will be one of the things, but the French election

:02:31.:02:34.

The German election in Germany, the Italian banks disaster...

:02:35.:02:38.

It might come a close second, I think, after all the elections

:02:39.:02:41.

taking place in Germany, Italy and France.

:02:42.:02:43.

But I agree with Steve, I think 2016 might have been

:02:44.:02:45.

Hell will break loose in 2017, just because it's going to become

:02:46.:02:54.

real from the end of March, when the famous Article

:02:55.:02:56.

Because, so far, we've been discussing Brexit,

:02:57.:03:05.

but just discussing it to say there's nothing to discuss.

:03:06.:03:10.

Predictions in 2016, except 2017 is the real thing.

:03:11.:03:18.

However, I'm not sure that the shock of reality will do

:03:19.:03:20.

much for the Tories, or for Theresa May,

:03:21.:03:23.

Would you agree that the core of this is not just what political

:03:24.:03:31.

uncertainty there may be in Britain about Scotland, and how

:03:32.:03:34.

But the political uncertainty in Europe is vast, and that the EU

:03:35.:03:38.

itself, never mind Brexit, the EU in a year's time could be

:03:39.:03:41.

On the other hand, the devil is in the detail.

:03:42.:03:49.

If you start looking, which I have done, I urge everyone

:03:50.:03:54.

to look into the details of trade deals.

:03:55.:03:57.

This is what civil servants will do throughout Europe and Britain,

:03:58.:04:09.

Because the EU has to approve every single change of quarter that

:04:10.:04:21.

It looks to me very possible that in two years' time,

:04:22.:04:25.

Britain will have no trade deal or agreement with the EU,

:04:26.:04:27.

and they will be somewhere in the wilderness.

:04:28.:04:33.

Some people think that's actually certain, because you can't negotiate

:04:34.:04:35.

a trade deal with the EU when you are a member of the EU,

:04:36.:04:38.

so you have to be out of it, and it will take two years

:04:39.:04:42.

You can start negotiating a sort of road map, or you can start talks

:04:43.:04:46.

Everything's possible in diplomacy, I suppose.

:04:47.:04:54.

Where do you think we are going to be on Brexit in a year's time,

:04:55.:04:58.

I just think it's going to get worse.

:04:59.:05:02.

We are, as Steve says, we are in this strange

:05:03.:05:05.

period of complacency, even smugness, on the part

:05:06.:05:10.

of Brexiteers, who justifiably point out that many of the Remainers'

:05:11.:05:13.

economic arguments or predictions before June 23rd

:05:14.:05:14.

Which is true, but don't let that deceive you, it will kick in.

:05:15.:05:24.

You even hear it anecdotally, people saying, this is going to be

:05:25.:05:38.

a good Christmas but then we'll have to start tightening our belts.

:05:39.:05:41.

And we are going to get inflation, growth is going to slow.

:05:42.:05:44.

Is it going to go into recession at some point, who knows?

:05:45.:05:46.

I believe 2017 will be the year of the preparation the divorce,

:05:47.:05:55.

and I believe it will be a very painful divorce between

:05:56.:05:58.

The lawyers will come, and it will be very,

:05:59.:06:13.

It wouldn't be an easy landing for Theresa May.

:06:14.:06:20.

It will be a very, very hard time ahead.

:06:21.:06:24.

The people who actually initiated or supported Brexit disappeared.

:06:25.:06:29.

We don't see them any more talking or arguing.

:06:30.:06:34.

So, I think Britain will face huge difficulties to get any sort

:06:35.:06:37.

of privileges from Europe in the coming two years.

:06:38.:06:43.

I think free trade, which Britain is looking for,

:06:44.:06:49.

the deal they are hoping for to compensate for the losses

:06:50.:06:55.

of Brexit, I think it will be extremely difficult for them.

:06:56.:06:57.

Europe are looking for a quick exit of the UK from the EU.

:06:58.:07:03.

Isn't the counterargument to you gloom mongers that at some

:07:04.:07:05.

point reality will indeed set in, and you've got to make it work?

:07:06.:07:11.

Britain isn't going to be towed out into the Atlantic,

:07:12.:07:19.

Europe isn't going to go away, we'll still want to trade with each

:07:20.:07:22.

other, so somehow we've got to reach a deal.

:07:23.:07:24.

And there is another argument which is that the crisis will not be

:07:25.:07:29.

will not be in the UK, but will be in the rest

:07:30.:07:32.

With the security threat which became a huge issue

:07:33.:07:35.

again at the end of 2016, the elections in other countries

:07:36.:07:38.

There's no point for example Theresa May negotiating

:07:39.:07:42.

with President Hollande, we know he will not be there.

:07:43.:07:45.

So it could be that there is a sort of wider identity crisis

:07:46.:07:51.

for the European Union, which overrides Britain,

:07:52.:07:56.

which will be seen as ahead of the times in getting out

:07:57.:07:59.

I think that is unlikely in the sense that in the UK

:08:00.:08:04.

we are always predicting that the European Union in one form

:08:05.:08:06.

"The euro can't survive," so far it has, and so on.

:08:07.:08:15.

So I think it's unlikely, but it's possible that the big crisis of 2017

:08:16.:08:18.

is within the European Union, and Britain is just getting

:08:19.:08:21.

on with it on the sidelines, which is a safer place to be.

:08:22.:08:27.

I think it's more likely that the negotiations

:08:28.:08:29.

will be a dominant theme, certainly in Britain,

:08:30.:08:31.

Yeah, and can we add to shift the focus to Britain,

:08:32.:08:38.

I think domestically in Britain, I see the Brexit

:08:39.:08:40.

Because, I've seen it in Britain, Brexit has separated families.

:08:41.:08:46.

Children and parents and grandparents.

:08:47.:08:59.

It's the first time I've seen this, and I've been

:09:00.:09:01.

Also, there is this "whose side are you on?

:09:02.:09:05.

If you don't share my Brexit conviction you are

:09:06.:09:07.

That's what I call Brexit Inquisition, and I think

:09:08.:09:11.

It's not going to be very good for the British people.

:09:12.:09:15.

That's what happened in Scotland as well.

:09:16.:09:16.

A referendum that was meant to solve and resolve an issue,

:09:17.:09:20.

divided families, friends, and didn't resolve it.

:09:21.:09:24.

At New Year's parties you had to be very careful what you said

:09:25.:09:27.

Donald Trump inherits the presidency of the United States,

:09:28.:09:34.

and also a nation in which more voters voted against

:09:35.:09:36.

A nation divided geographically, politically, culturally

:09:37.:09:38.

Can he pull America together in 2017?

:09:39.:09:41.

Will he surprise us by using his entry level

:09:42.:09:45.

position in politics to, as he puts it, "make

:09:46.:09:48.

This is the year, 2017, when the slogans have to become

:09:49.:09:53.

Well, the answer to all those questions is probably "no".

:09:54.:09:58.

But, having said that, you can't make anything great in a year.

:09:59.:10:06.

When did America cease being great, is one of the questions

:10:07.:10:09.

You can't unite a country any year, either.

:10:10.:10:28.

What probably will happen, which is going to appall people

:10:29.:10:30.

who are appalled by Trump, is that for a short period of time,

:10:31.:10:33.

he's going to pour a lot of money into the country.

:10:34.:10:36.

It's going to be at a huge cost later on, but he's going to cut

:10:37.:10:39.

taxes, and he's going to pour $1 trillion at least

:10:40.:10:42.

We see this in other countries as well.

:10:43.:10:54.

So there could be this sort of bubble, and that is going to,

:10:55.:10:57.

again, that will not heal the divisions, however.

:10:58.:11:01.

The people on the other side will say, yes,

:11:02.:11:04.

but what is going to happen in the future?

:11:05.:11:06.

People outside of the United States are really waiting for him to fail.

:11:07.:11:10.

And they are appalled by what is going on.

:11:11.:11:16.

Somebody was telling me yesterday, it looks like Kazakhstan,

:11:17.:11:19.

where you have the President installing his relatives,

:11:20.:11:21.

and his daughter moving into where the First Lady used

:11:22.:11:23.

Billionaires on the Cabinet, where there's never been a billionaire.

:11:24.:11:31.

I thought that was quite striking that there's never been

:11:32.:11:33.

Not that that means anything, but it's interesting.

:11:34.:11:41.

How do you think 2017 could shape up?

:11:42.:11:44.

There are those who think both Houses of Congress are Republican,

:11:45.:11:48.

there's a chance to make a difference on the Supreme

:11:49.:11:51.

Court, and you've got a Republican President.

:11:52.:11:53.

You've got two years, because that's the next mid-term elections.

:11:54.:11:56.

Two years to prove that Republicans running everything can do so to make

:11:57.:11:59.

America great again, whatever that means.

:12:00.:12:00.

Well, great again, I mean, great again is one thing.

:12:01.:12:03.

I agree with you that there might be a temporary economic relief,

:12:04.:12:06.

just because he's going to inject so much money.

:12:07.:12:13.

I think 2016 showed that we all look up to America in some way.

:12:14.:12:24.

We've done that for 200 years, probably.

:12:25.:12:26.

And, this was the end of something, great.

:12:27.:12:31.

So for Trump, I don't think Trump will make America great again.

:12:32.:12:38.

I think "great" to some people implies the role of a superpower.

:12:39.:12:41.

If anything, the United States is turning inwards.

:12:42.:12:46.

Look at enemies who have been made already.

:12:47.:12:48.

How is 2017 being seen in the Middle East in reference

:12:49.:13:02.

to Donald Trump, what difference will he make?

:13:03.:13:04.

I have a cynical feeling that Donald Trump could create another

:13:05.:13:06.

sheikdom in the United States, to be honest.

:13:07.:13:13.

Because if you look at his Cabinet, it is either

:13:14.:13:15.

generals or ex-generals, and billionaires or businessmen.

:13:16.:13:19.

We need just the headgear, that's all!

:13:20.:13:29.

The problem is, we are extremely confused in the Middle East.

:13:30.:13:46.

He signalled to the left and turned to the right.

:13:47.:13:53.

We don't know actually what his intention is.

:13:54.:13:59.

He said he wants to make America great, but he is,

:14:00.:14:02.

if you look at him, he is supporting or following Vladimir Putin's

:14:03.:14:05.

policies on the Middle East and other parts of the world.

:14:06.:14:12.

So where is that independent American President here?

:14:13.:14:17.

The other thing is, I believe this man's foreign policy in particular

:14:18.:14:25.

could be based on business deals, not political deals.

:14:26.:14:27.

He will look at things from the eyes of a businessman,

:14:28.:14:32.

a billionaire, not from the eyes of ordinary people.

:14:33.:14:35.

About the rift in the United States, I believe this rift will widen,

:14:36.:14:43.

I don't believe it will shrink, next year or the year after.

:14:44.:14:46.

I think we are dealing with absolutely new phenomena

:14:47.:14:49.

I am worried, I am worried because I cannot predict.

:14:50.:14:57.

OK, the Middle East is the most unpredictable area in the world,

:14:58.:15:00.

but also, now, America is an unpredictable quantity.

:15:01.:15:08.

What is he going to do with China, to phone the Taiwanese President

:15:09.:15:11.

and talk to him, even before he took office?

:15:12.:15:14.

It's interesting how tentative everybody is about this,

:15:15.:15:27.

we can't be certain about anything in 2017, but we are all very

:15:28.:15:30.

tentative about what a Trump presidency might mean.

:15:31.:15:32.

All the American commentators are very tentative too.

:15:33.:15:37.

Yeah, but I think what is interesting is the only policy

:15:38.:15:39.

he mentioned when he made his brief victory statement the following day

:15:40.:15:42.

after he was elected, was this focus on capital spending.

:15:43.:15:47.

It was the one policy element he included in the speech.

:15:48.:15:50.

This is fascinating on lots of levels.

:15:51.:15:57.

One, if it's true, if he does it, he will be much more Keynesian

:15:58.:16:00.

than the former Shadow Chancellor here, now Britain's

:16:01.:16:02.

In property, he knows about debt financing, doesn't he?

:16:03.:16:07.

The other thing is, you mention this is an all-Republican

:16:08.:16:16.

ticket in Washington, but a lot of the Republicans

:16:17.:16:19.

in Washington are small state, small government Republicans.

:16:20.:16:25.

Here is a President planning to spend big.

:16:26.:16:31.

Although I think there could be tensions within the Republican elite

:16:32.:16:33.

so-called, at a point of their total dominance.

:16:34.:16:36.

I think the other areas are completely uncertain,

:16:37.:16:38.

As you say, they certainly need that investment, as the UK does.

:16:39.:16:46.

Whether he will or not is an interesting question.

:16:47.:16:52.

It's a funny kind of conservatism, isn't it?

:16:53.:16:54.

It's not conservatism as anyone would understand it.

:16:55.:16:58.

Progressive economists have for years been saying "we need

:16:59.:17:01.

stimulus, we need stimulus, we need stimulus."

:17:02.:17:03.

Now, people like Paul Krugman are saying, "well, yes,

:17:04.:17:07.

Trump is talking about stimulus, but it's the wrong kind."

:17:08.:17:13.

That it's not going to translate into stimulus,

:17:14.:17:15.

because tax breaks to really, really wealthy people,

:17:16.:17:17.

that doesn't mean they're going to spend more,

:17:18.:17:19.

it means they're going to save more, which doesn't help.

:17:20.:17:23.

But you know, Marine Le Pen's economic policies is

:17:24.:17:26.

It's about big infrastructure investment.

:17:27.:17:29.

It's Keynesian, but it's also national socialist.

:17:30.:17:36.

But that's why many working people in France will vote

:17:37.:17:38.

for Marine Le Pen, and it's also why people like Marine Le Pen,

:17:39.:17:41.

Donald Trump and others, Ukip in this country,

:17:42.:17:43.

Of course, because the left has stopped doing it.

:17:44.:17:47.

So, somebody's taking the flag of Keynesian policies.

:17:48.:17:52.

When Trump was elected, some people said, he's going to be

:17:53.:17:57.

LAUGHTER In 2017, Bari, the Middle East we touched on,

:17:58.:18:10.

but specifically, we've seen the fall of Aleppo in 2016.

:18:11.:18:13.

In 2017, is the war in Syria going to be over, do you think?

:18:14.:18:18.

The talk about removing him from power is eroding completely now.

:18:19.:18:34.

Turkey, which is a major player in the Middle East, now is actually

:18:35.:18:37.

And also towards Assad in the later stages.

:18:38.:18:42.

They realised that they were wrong in the last six years, fighting,

:18:43.:18:46.

or concentrating on toppling Assad, and it didn't work.

:18:47.:18:50.

So, I can see some sort of formula coming this year, 2017.

:18:51.:18:57.

Yesterday, there was a meeting between the three foreign

:18:58.:18:59.

ministers of Turkey, Russia and Iran.

:19:00.:19:09.

They are working on some sort of formula.

:19:10.:19:13.

This formula is to create a new momentum for negotiations

:19:14.:19:16.

between the Syrian regime and the opposition.

:19:17.:19:18.

So, we can see some sort of stability here.

:19:19.:19:24.

But the problem is, Islamic State, that major danger, is still there.

:19:25.:19:31.

The war against Mosul, to remove them out completely from Mosul,

:19:32.:19:37.

There is also Raqqa, which is still in Syria,

:19:38.:19:46.

and there are plans to evacuate to root out Islamic State from it.

:19:47.:19:52.

Until now, there is no concrete plans to attack them,

:19:53.:19:58.

simply because they proved to be a very, very hard nut to crack.

:19:59.:20:07.

We've got a few minutes left, maybe time for some predictions.

:20:08.:20:10.

Will there be a general election in 2017?

:20:11.:20:13.

Prediction there won't be a general election, Theresa May hasn't got

:20:14.:20:16.

a cause to justify a general election, because Parliament

:20:17.:20:18.

So, she said there won't be, and what she says tends to be pretty

:20:19.:20:23.

close to what she does, so there won't be

:20:24.:20:25.

And it will be a year dominated, as ever, by Europe, and its impact

:20:26.:20:32.

on the internal politics both of the governing Conservative Party,

:20:33.:20:34.

and indeed the confused opposition Labour Party.

:20:35.:20:43.

Her difficulty is she's not ever going to please everybody.

:20:44.:20:49.

There are those who don't want Brexit to happen,

:20:50.:20:51.

there are some who want Brexit to happen tomorrow, and to be

:20:52.:20:54.

Whatever deal she comes up with, she can't keep everybody happy,

:20:55.:20:58.

It's going to be very difficult for her.

:20:59.:21:01.

I had some sympathy for her, because she has inherited

:21:02.:21:03.

an impossible position, whereby exactly that.

:21:04.:21:08.

And it's not just that she can't deliver for the Remainers

:21:09.:21:10.

or the Brexiteers, but there are different forms of Brexit

:21:11.:21:13.

By definition she can't please all of them.

:21:14.:21:16.

Because in the UK, Europe is such an emotive issue,

:21:17.:21:24.

MPs are feeling neurotic and highly charged, a lot of the Brexit MPs

:21:25.:21:28.

fear this dream they've had will be somehow stolen from them

:21:29.:21:30.

And equally, there are Remainers who are so convinced this is heading

:21:31.:21:39.

towards a cliff edge, they wonder why she won't stop it.

:21:40.:21:44.

And somehow she's got to deal with this, and it

:21:45.:21:47.

And in France, how about Francois Fillon becoming

:21:48.:21:51.

But the important thing here is not Francois Fillon,

:21:52.:21:58.

but that Marine Le Pen is not going to become President.

:21:59.:22:01.

Or perhaps a hope first and a prediction, because we know

:22:02.:22:11.

And it's also, I think, the end of the French left,

:22:12.:22:15.

I predict, whoever it is, the French left candidate will clock

:22:16.:22:22.

I think they are in the wilderness for the next-generation.

:22:23.:22:28.

That's true pretty much across western Europe,

:22:29.:22:30.

Now, I don't know where you're going to go with this!

:22:31.:22:37.

LAUGHTER I'm just going to cough and pass it back!

:22:38.:22:41.

What we learned this year is to expect the worst,

:22:42.:22:46.

Next year it's going to be the same thing all over again.

:22:47.:22:55.

In the United States, people are going to just be amazed,

:22:56.:22:58.

I think, over and over again by what's happening in Washington.

:22:59.:23:00.

Outside of the United States, people are going to be

:23:01.:23:03.

looking at what's going on, and they are going to be astounded

:23:04.:23:06.

It's going to be unpredictable, as you said, Bari.

:23:07.:23:10.

That unpredictability is where we are these days.

:23:11.:23:14.

Maybe one thing one can predict is that America

:23:15.:23:21.

has thrived, despite rather than because of anybody

:23:22.:23:23.

In other words, there is a genius within the American people,

:23:24.:23:27.

300 million of them, to get things done.

:23:28.:23:29.

It's not irrelevant, who's running the country,

:23:30.:23:33.

And, at some point, whatever people feel is wrong now,

:23:34.:23:39.

may well be righted in part down the road.

:23:40.:23:41.

I think we are looking well beyond 2017 for that to happen.

:23:42.:23:48.

It's not going to fall apart in 2017.

:23:49.:23:56.

No, although there is a movement to do so!

:23:57.:24:00.

LAUGHTER We will watch that movement.

:24:01.:24:01.

Gavin, I cannot give you an optimistic prediction when it

:24:02.:24:04.

comes to the Middle East, unfortunately.

:24:05.:24:06.

I believe the bloodshed could continue.

:24:07.:24:12.

Now Russia has the upper hand in that part of the world,

:24:13.:24:15.

I believe, personally, that Islamic State, Isis,

:24:16.:24:21.

Unfortunately it is like a wounded tiger, now.

:24:22.:24:26.

They are hitting here, hitting there.

:24:27.:24:33.

They could actually try to prove they are still alive and kicking

:24:34.:24:37.

by carrying out a lot of terrorist attacks,

:24:38.:24:39.

probably in the Middle East itself, but also in Europe.

:24:40.:24:42.

It is a very, very frightening year, when it comes to the Middle East.

:24:43.:24:45.

The problem is it will flow to the sides of the Middle East.

:24:46.:24:48.

But at least in Syria there is some progress, here.

:24:49.:24:52.

It could be we see less bloodshed in Syria in 2017.

:24:53.:24:54.

But, as I said, Islamic State is a monster, a huge monster.

:24:55.:24:57.

They managed for the last two or three years to

:24:58.:25:00.

We can see what happened in Germany, they declared responsibility

:25:01.:25:11.

for the attack on the Christmas market, and also they declared

:25:12.:25:14.

It seems, unfortunately, we will see a lot of terrorist acts

:25:15.:25:27.

somewhere in Europe, but also in the Middle East.

:25:28.:25:31.

It is sad to say that, but this is what we can

:25:32.:25:36.

see, OK, what I can see in my crystal ball.

:25:37.:25:39.

Well, in that case, I think we will leave 2016 behind

:25:40.:25:43.

That's it for Dateline London's look ahead to 2017.

:25:44.:25:47.

You can contact the programme on Twitter @GavinEsler,

:25:48.:25:49.

and you can argue with our guests, if that's the way you want to go.

:25:50.:25:53.

We are back next week at the same time, please make a date

:25:54.:25:56.

The good news is the fog isn't quite as dense, widespread or long-lasting

:25:57.:26:26.

as it has been recently.

:26:27.:26:28.

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