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Europe, after the Conservative Party

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Published 19 October 2012, updated 22 October 2012

Margaret Thatcher, John Major and Tony Blair, whatever the other distractions of their premierships, were keen followers of the European debate. Only Gordon Brown, in the terminal stages of his decay, can be accused of such a lack of interest in matters European. David Cameron is in a league of his own, writes Tom Spencer.

Tom Spencer is visiting professor of Public Affairs at Brunel and Chester universities. For decades he enjoyed a distinguished career in public office, serving as the leader of the British Conservatives in the European Parliament and President of the European Parliament's Committee on Foreign Affairs, Human Rights and Defence Policy. This op-ed is a shortened version of an commentary published on BlogActiv

A senior European figure, commenting on David Cameron’s demeanour during European Councils, is reported to have said “He is just not interested”.

Unfortunately “not interested” is not an acceptable position for a British prime minister in the 21st century.  It was a dangerous posture for Lord Salisbury in the days of “Splendid Isolation” at the height of British imperial power. Yet it can stand as a symbol of the strange sense of dislocation which has currently seized so much of the Westminster bubble for whom “Fog in channel – Europe cut off” seems to be simply a self-evident truth. 

As we drift, apparently aimlessly, towards such an In/Out referendum in 2016, it seems sensible to rank the uncertainties in some kind of logical order. We can then contemplate the series of Russian dolls that such a ranking implies. It is my belief that the innermost ‘doll’ has now been settled. 

The euro will survive as part of a deal that creates a political and fiscal union for which the Germans are prepared to pay. The second question therefore is what should Britain’s response be? We can leave. Or we can catch up with the rest of the Union. Or we can define a permanent second-class citizenship, hope to negotiate such a position with our partners and then sell it to the British electorate. The risks in such a process are obviously immense. 

Polish Foreign Minister Radek Sikorski pointed out in a speech at Blenheim Palace on 21 September that Britain, and in particular the Conservative Party, should not expect sympathy or support from the rest of Europe, both inside and outside the eurozone. Sikorski demolishes eurosceptic myths with commendable vigour. His conclusion is worth quoting at length: 

“Now, Britain’s leaders need to decide once again how best to use their influence in Europe. The EU is an English-speaking power. The Single Market was a British idea. A British commissioner runs our diplomatic service. You could, if only you wished, lead Europe’s defence policy. But if you refuse, please don’t expect us to help you wreck or paralyse the EU. Do not underestimate our determination not to return to the politics of the 20th century. You were not occupied. Most of us on the continent were. We will do almost anything to prevent that from happening again.”

As a service to the Conservative Party, I have posted his speech on my website.

The assumption that Britain can lead a second-tier group of countries is an old British fallacy dating back to our departure from the Messina Conference and the subsequent creation and failure of the European Free Trade Association (EFTA). Whatever their reservations, there are no other countries seriously contemplating leaving the European Union. They long ago came to terms with the reality of power for all European countries, whether big or small, in a globally dangerous world.

It is a good example of what Sikorski refers to as the “False consciousness” currently infecting British attitudes to Europe.

Europe plays the same role in the mind of the Conservative Party as is played by abortion, creationism and birther conspiracies in the fevered mind of the Republican Party. On what basis one might ask has the Conservative Party fallen out of love with Europe? It can’t surely still be bent cucumbers and long abandoned menus for the British sausage. Are the worthies of the Party really up in arms about the threat to our liberties from the European Court of Human Rights? How many of them know in any case that this Court bears no relationship to the European Union itself.

Do frightened families gather round their kitchen tables at night to discuss the imminent dangers of the European arrest warrant? How many British families would want us to go back to the days of ensuring that junior doctors were regularly deprived of sleep as part of the natural funding of the NHS? How many British stalwarts rise every morning determined to repel Spanish fishermen, French onion pedlars and German car salesmen?

Surely we have grown beyond such tedious and outdated stereotypes?

Opinion pollsters still ask the same questions they have been asking since we joined. They ask about public understanding of institutions; which we do not teach properly in our schools. They ask our electorate to assess whether or not Europe has been good for us; without presenting any statistics. They ask whether we should stay or leave; without presenting any information on the cost of departure.

The public, who rank Europe well down their list of priorities, respond with the pollsters' equivalent of a shrug of the shoulders and the raising of two fingers. Nobody asks them to seriously contemplate the impact of leaving the European Union on their jobs and lifestyles.  Nobody asks them to explain how their country would be better off outside all the great trading blocs or why inward investment should come to a Britain which has deliberately excluded itself from the rest of the Continent.

COMMENTS

  • To say we are aimlessly drifting towards an In/Out referendum in 2016 seems a little unfair given the massive amount of work being undertaken by very active grass roots organizations, applying increasing pressure on the political parties.

    Most serious economists expect there to be significant changes in the Euro, whether that involves just Greece leaving or a number of joining them still needs to be clarified. Beyond that I would certainly agree that a political and fiscal union (without any express popular support) will be the outcome for those countries that remain in the Euro.

    We are then presented with your three options. It seems unlikely in the extreme that the UK will ‘catch up with the rest of the Union’, I cannot remember the last time anyone including Kenneth Clarke or Paddy Ashdown suggested the UK join the Euro, Schengen etc . That would seem to condemn us to the ‘second tier group of countries’, eventually leaving the UK in a group of two with Denmark as the only other country that is not legally required to join the Euro.

    Most of us do not believe that a genuine renegotiation of membership is possible given the undoubted strain that would cause to our European partners, especially in a period when they will be creating the aforementioned political union. Even were such a negotiation to take place any political leader would as you say have trouble selling it to the electorate, not least because experience has shown that EU agreements often don’t mean what they seem to do.

    That leaves us with your third option, exit. Just because something is not being contemplated by others does not necessarily make it a good or bad idea.

    I am not a Conservative and I would not claim to understand why their party has fallen out of love with Europe. I would however suggest that it has something to do with the fact that the people have consistently said they are not satisfied with the current arrangements with the EU. By their very nature politicians want to remain in power and so must reflect the wishes of their voters. After 40 years the British voters have never loved the EU.

    Membership of the EU under the Lisbon Treaty requires a country to also accept the ECHR, so whilst your comment “that this Court bears no relationship to the European Union itself” is accurate in a narrow sense in a more complete understanding it is inaccurate.

    If the people around their kitchen tables knew how wide sweeping the powers of the European Arrest Warrant were they might well be frightened. Assurances given at the time of its launch that it would be limited to only serious cases have proved baseless. It has been used thousands of times in cases both extremely minor (one case revolved around the alleged theft of a piglet) and worrying in terms of natural justice (warrants have been executed resulting in the arrest of individuals tried in absentia without their knowledge and thus given the chance to defend themselves). More serious than what is in a sausage I think we can agree.

    As you are aware the government has launched a cost benefit analysis of EU membership, something that no other EU government has undertaken. The previous exercise conducted by the British government prior to the accession indicated that the economic benefit did not outweigh the cost but they took the view that the increase ‘influence’ was worth the cost. I suppose most of us feel that that was a mistake. A quick example, the British chemical industry estimates the cost of implementing the REACH directives at £6bn per year. The value of their trade with the rest of the EU is £5.5bn.

    In terms of the impact on jobs, the Institute for Economic and Social Research has previously reported that there will be no overall impact on employment levels in the UK regardless of membership of the EU.

    As a final economic point in 1990 the EU represented 27% of world output (measured in US dollars, at purchasing power parity). By 2002 the EU was 25%, it is estimated that by 2016 this will have fallen to 18%. The Sapir Report (appointed by the European Commission itself) reported in Summer 2003 that the EU was headed for long term economic decline due to a reliance on an outdated model that discouraged innovation and had not adapted to changing world conditions. You will of course remember that the Lisbon Council Meeting which was aiming to address this and make the EU the most competitive economic bloc in the world was quietly abandoned in 2005.

    Although EU supporters inevitably claim that the economic consequences of leaving the EU would be grim, the fact is that there are just as many people who believe that whilst it would require adjustment (of the same scale the UK underwent when it originally joined) the advantages to be gained by leaving are significant.

    By :
    Iwantout
    - Posted on :
    20/10/2012
  • This debate appears already outdated. After several decades of histrionics, the rest of Europe is getting tired... to the point of calling the British PM's bluff... and daring it to leave the EU in earnest. It might be better to have Britain out than being permanently confronted with an insider who does not want to play according to the collectively decided rules. The people of Scotland and Wales may then also reconsider their position and dump the English as well. Little England, your wake up call has come!

    By :
    Stuart Mill John
    - Posted on :
    22/10/2012
  • Out of the EU, what kind of agreements could Britain find elsewhere, to finally put an end to the constantly unsatisfied euroskeptic moaning? As Britain won't all of a sudden reform all its economy to make it fit to some hypothetical trading partnership across oceans instead of across the Channel (presupposing America or a rebuilt Commonwealth would now be waiting for Britain to join them), the UK anyway will long be complaining about its geographical dependancy to the ever-more-united continent. After staying out, getting in, negociating opt-outs and now getting out again, I wonder if the Tories will ever find their place in relation to Europe and eventually live fine next to it, whether in, out, in-between or else.

    By :
    UKskeptic
    - Posted on :
    22/10/2012
  • @Iwantout - some comments:

    "previous exercise conducted by the British government prior to the accession"

    There was no previous exercise. Britain joined after two previous rejected applications which were made on the basis that the EEC (as it then was) was not only thriving (confounding previous UK doubts) but also developing in a way that was contrary to UK interests. Read about it in "The Price of Victory" by Michael Charlton.

    "the British chemical industry estimates the cost of implementing the REACH directives..."

    Perfect example. This directive is also implemented by Japan as they want to trade with the EU. Our companies would have to do the same.

    "the EU represented 27% of world output (measured in US dollars, at purchasing power parity). By 2002 the EU was 25%, it is estimated that by 2016 this will have fallen to 18%."

    And Britain? From manufacturing 54% of the finished products in world trade in 1865, this was 4.7% in 1995. And the EU can't be blamed for this as other European countries actually increased their shares.

    By :
    Patrick
    - Posted on :
    23/10/2012
  • Patrick,

    While the cost benefit analysis currently being conducted is undoubtedly intended to be more comprehensive than previous examinations Richard Crossman in Vol 2 of his diaries (covering April 1967) states that Wilson noted from governmental studies there were "economic disadvantages in entering the Common Market but they are being overlooked by the British Government because of the tremendous political advantage". To assume any country would join a community / union without first considering the economic impact seems unlikely I am sure you would agree.

    I don't contest that the EEC was developing in ways contrary to UK interests. By stalling UK entry until 1973 it enabled the CAP and CFP to be constructed in a way that was extremely disadvantageous to the UK but generous to other countries. (Before we get wrapped up in arguements that the UK should have joined a the start can I please remind you that this was effectively made impossible due to the Euratom aspect of the negotiations.)

    Of course we would have to comply with EU regulations regardless of whether we were in or out of the EU for all goods we wished to export to the single market. Just as currently we must compy with US, Chinese, Russian, Japanese etc etc regulations when we export to those countries, and over which we have no control,other than via the World Trade Organisation.

    But the EU directives apply to all aspects of this country not just those items being exported. It is this that adds enormously to total economic cost. Remember that aproximately 30% of UK economic activity is exports, less than half of which is going to the EU, 43% on the last figures I saw. This makes the UK unique amongst the larger EU countries in relation to exporting by far the lions share of its products to the World outside of the EU. Therefore for roughly 13% of our total economic activity we must enforce EU directives across 100% of our national activity with the associated costs. It is these costs that I was indicating would be removed.

    The point I was trying to make with reference to the declining slice of the world economy held by the EU is that there is a big world outside the Union. The EU by its own analysis has serious issues with innovation and research. and I for one believe that the drive to standardise / regulate everything can only contribute to this as a serious structural problem. As an aside but indicative of a long term issue I would point out that of the top 25 research universities in the World as measured on the Academic Ranking of World Universities, 19 are in the US, UK 4, Japan and Switzerland 1 each. The first non British EU university is placed 37.

    Stuart Mill John has a very valid point, we are reaching, or indeed have passed, the stage whereby a decision will have to be made, in or out. The EZ must move towards further integration to save the currency and we are seeing the steps towards that. Happily given the European Union Act 2011 that means the necessary treaty changes will require a UK referendum and the first chance for the people to decide on the political project that they have been ensnared in for 40 years. That is all any democrat could want. By the way contrary to Stuart's comment the opinion poll conducted by Chatham House July 2012 showed that every region of the UK including Scotland and Wales had majorities rejecting membership of the EU.

    If I could close with a quote from Norman Lamont a person who has seen the EU close up and worked in economic circles for at least 22 yrs, "I can only say I cannot pinpoint a single concrete economic advantage that unambiguously comes to this country because of our membership of the European Union"

    Cheers

    By :
    I want out
    - Posted on :
    24/10/2012
  • @i want out
    * By cost-benefit analysis, I meant a public report along the lines as that prepared by the Swiss. In any event, both Wilson and Crossman were so far to the left that they rejected the EEC as a capitalist project.

    * Far easier to trade with 26 other countries all with the same trading rules rather than complying with US/Chinese/Russian etc rules, most of which exist to block foreign competition. The EU angle also works better as member states get the benefit of trade agreements concluded with non-EU countries and these very often guarantee access to the foreign markets.

    * "13% of our total economic activity we must enforce EU directives across 100% of our national activity", not true as EU directives principally cover the single market and other areas such as defence, justice and home affairs are excluded. Moreover, many of those rules are ones that would have to be adopted in any event and the UK's trade with the EU is more in the range of 50%+ of its total world trade.

    * The UK is not prevented from carrying out innovation and research as an EU member. Also, if I remember rightly the R&D budget over the last 20 or so years has grown substantially.

    * The European Union Act will only help you if the government actually does something. At the moment, it's standing still, thereby creating more of a problem for other EU states.

    * Lamont is probably only slightly outshadowed by Brown as the UK's worst post-war chancellor. His speech (made to the Selsdon group in 1994) came just after his career had gone up in smoke as a result of Black Wednesday. The full text of the speech is available in google books and, interestingly, if you continue reading after the part you quoted, Lamont admits that inward foreign investment (Britain was in 1994 the largest receipient) was largely due to being part of the single market. Lamont also forgets the condition Britain was in in the 1970s and doesn't consider what many writers on the subject have concluded, i.e. membership of the EEC/EU has eased Britain's post-war decline (just as with France) and provided it with a opportunity to create a new role in the world. As Thatcher said in the 1970s, the EEC opened doors where others were previously closing.

    By :
    Continental drift
    - Posted on :
    25/10/2012

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