Airbags puffing

Bloomberg: The European Commission fired a warning shot across Theresa May’s bow after her government decided to seek a tailor-made Brexit deal on its own terms, saying that the U.K. could not pick and choose the conditions it preferred. The British premier earlier this week set out the first of her red lines for Brexit negotiations, saying she wanted to curtail the free movement of people coming to the U.K. from the European Union and suggesting she’s willing to leave the bloc’s single market to do so.  

European Commission Vice President Valdis Dombrovskis said inc response in an interview Saturday with Bloomberg Television’s Flavia Rotondi at the Ambrosetti Forum in Cernobbio, Italy, that conditions on free movement of goods, services, capital and labor were “a package and there cannot be cherry picking -- you like free movement of capital but don’t like free movement of labor or the other way round.”

Blowhards.  
Capital moves freely around the world, as do goods.   Are the EU and the Brits planning to staff the ports with hundreds of paper and ink trade  bureaucrats? No, they will set mutual tariffs according to the default WTO rules.  They will plow through the various goods getting partial protection, sign a deal, release a set of tariffs, and the private sector will make the simple Coasian adjustments, requantizing the various transaction costs.  

The only thing to complicate is complexity itself.  We have no complexity here, we have standard operation procedure.