Brexit: Brussels tech folk fear possible UK vote to leave European Union

Lawyers “licking their lips” at prospect of a Brexit and chaos it might create.

Jennifer Baker – Jun 23, 2016 7:00 am | 21

Credit: Emmanuel Dunand/AFP/Getty Images

BRUSSELS—While most of Brussels is palpably on edge over the possibility of a Brexit vote, most tech lobbying organisations don’t have an official position.

Ars contacted the dozen biggest organisations lobbying the European Union in the tech, telecoms, and digital sector. None had an official line, though many individuals pointed out that a “Leave” vote would be bad for the industry.

“The European Commission is working on its digital single market agenda. But the biggest issue is that on tech, and the economy in general, Europe is split into north and south. There is a big open market northern bloc, currently including the UK. But Germany is the swing state in this group—sometimes it votes like a northern country, sometimes like a southern one,” said James Waterworth, European vice president at the Computer and Communications Industry Association (CCIA).

“If the UK is removed, the Scandinavians will lose their champion. All future tech-related policy will become much less liberal and much more prescriptive. The overall economic impact could be quite dramatic as by its nature technology is one of the fastest moving sectors. And a Brexit would definitely be a bad thing for technology companies,” he told Ars, adding on a personal level it’s not good for Brits’ job prospects in Brussels.

Another Brit, who has spent 20 years in Brussels, is Paul Meller—communications director at Digital Europe. He agrees with Waterworth. “The nature of the tech industry is cross border, so maybe it is particularly in synch with a single market approach,” he said.

“Were the UK to leave it would be a blow. The UK is pro-innovation and often the voice of reason on these debates. It is an ally to the commission in its efforts to dynamise the economy and the digital single market is a big part of that,” he added.

Lobbyists at CCIA, DigitalEurope, and other tech groups have decided to stay out of the EU referendum debate. One said that it’s not a tech-specific issue and the impact of a potential Brexit far outweighs sector concerns.

However, general industry body, BUSINESSEUROPE has no such qualms: its members “stand united against Brexit,” its director general Markus J Beyrer said.

Brussels-based tech startup investor Simon McDermott said: “Brexit feels like a real divorce. There is an obvious financial impact of leaving and only some distant hope that things will be better. Tech people will survive regardless, entrepreneurs will flourish anyway. Basically the marginalised will get poorer by Brexit, while a few will make a killing in lobbying, consultancy and legal practice connected to all the new deals, thriving on chaos. I see them on Twitter, already licking their lips.”

Isolated digital island?

But a telecom industry source told Ars that “scale is essential to success in the digital sector. Netflix, Shazam, or Hailo, all tech companies rely on scale and access to big markets. With Brexit, UK would become an isolated digital island and damage its tech sector. Vodafone is one of Britain’s leading businesses, with operations in 12 EU countries. That success would simply have not been possible without the EU.”

Another source said that on issues like platforms, France and Germany might take a more protectionist approach if the UK was out of the way.

Most Brits in Brussels however are primarily concerned for their jobs and the damage a Brexit vote would do to the EU project as a whole.

“I think the tone of the debate has turned really nasty, and, regardless of the outcome, has caused the UK damage. I can’t believe that in 2016 leading politicians are comparing economists to Nazis—it’s Godwin’s Law in real life. In Scotland there’s lasting animosity between yes and no voters and I’m worried it will be the same in the UK, whatever the decision,” said former Brussels correspondent for the Wall Street Journal, Frances Robinson.

“I’m worried because in a campaign that has had more briefings and more fact checking than any I can remember, people are still saying they want facts, and still ignoring the ones we have,” added Anthony Zacharzewski, founder of DemSoc, the Democratic Society.

Non-Brits are also concerned: “I fear, no matter the outcome, euroscepticism, new nationalism and xenophobia, will profit,” MEP assistant Sebastian Raible said. Brussels’ lobbyist Kasper Peters agreed: “I am afraid of the precedent it would set for PVV, FN, AFD, and the like.” [News ed: No, we’ve no idea what that last bit means, either.]