You think so? Germany managed to turn around right quick, after all.
Germany's problems where financial/monetary, which are much quicker and easier to fix than the British malaise of anti-intellectualism, anti-professionalism, and the truth behind the "clogs to clogs in three generations" line. Mosely might manage (through heroic effort) to upgrade the UK's dilapidated industrial/infrastructure base, but breaking the habit of British entrepreneurs to go off and be idle country gentlemen as soon as they've made any money rather than reinvesting in something productive, will be much harder.
Mmm. I don't think this was ever seriously on the table, despite talks and support for it on both sides of the North Sea. Where's the incentive for Britain to take them?
From what I remember, the reason it fell through was because Whitehall let the Norwegians know that Britain was broke and that it wasn't in their best interests to join. Here the same Soviet threat will exist, but the UK will not be broke.
This is around the time the Soviet guerilla groups start fighting back, no?
The population density of the Gulf Emirates and the Nejed is too low to really sustain a guerilla war. Yemen was more troublesome as there was a more than marginally habitable interior. If the British want to be at all tough they'll just import guest workers from elsewhere and drown the natives.