"But what those who seek to mobilise that prospect for leverage in the negotiations fail to appreciate is how the whole threatening idiom – defiant swigging from the bottle marked “no deal” – completes the picture of a nation losing its balance, sliding out of control."
(The Guardian.)
Is "what" a fused pronoun and the object of the verb phrase "fail to appreciate" in the sentence above?
Yes (or "fused relative pronoun" in full). The thing that those people fail to appreciate is how ... etc.
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Yes (or "fused relative pronoun" in full). The thing that those people fail to appreciate is how ... etc. etc.