Greece and France have defied the eurosceptics

Both countries voted for pro-European politics and confounded the anti-EU right.

So what does the eurosceptic elite, which controls most of the media, the governing party and has its representatives in both the Lib Dems and Labour, do now? For months, we have been told that "Eurogeddon" or "Grexit" was just round the corner. Lucky Britain with its pound and made-in-Britain recession was not involved as the dreadful Europeans, with the deadweight euro around their necks, would sink below the waves. The best and the brightest of monolingual English commentators flooded into the Plaka in Athens to sip their ouzo with their columns already written, explaining how the Greeks pulled the plug on the euro. The Greek people have let them down.

In the French election, the left-wing windbag, Jean-Luc Mélenchon, was given star treatment by the BBC and English papers, who love a leftie as long as he beats up on Brussels. Then it was the turn of Alexis Tsipras. The Financial Times cleared away its usual stable of Nobel-prize winners on its comment pages to welcome the populist posturing of the new anti-Brussels oracle of Delphi. He said Greece would stay in the euro but not meet a single condition of continued EU help.

Both Mélenchon and Tsipras have a critique of the way the economy has been run in their countries and, more broadly, in Europe in recent years. They are right to reject the recession-generating austerity of British and German conservatives. But it is one thing to denounce 1930s economics, another to come up with policy that makes sense to a democratic electorate. In both France and Greece, voters had a second chance over multi-round elections to reflect and, in the end, they voted to reject the false prophets who offered simplistic solutions that could not work. They also rejected the advice from British pundits like Norman Lamont, Nigel Farage, David Owen, and nearly all press commentators, who insisted that the euro was all a dreadful mistake and the sooner Greece was booted out, the better.

There was generalised talk about the need for a referendum, promoted by both Tories and Labour, as if a single plebiscite (on what question exactly is never made clear) would settle the Europe question once and for all in British politics. Among our political and media elites there was an almost Trotskyist fervour of “the worse the better” as if a collapse into chaos of banks closing down and the euro being forcibly converted into drachmas or pesetas would be a ritual purging of Europe into a new entity approved by the bankers and bank-rollers of entrenched British euroscepticism.

But as so often, Europe failed to conform to the eurosceptic script. Both the Greeks and the French voted for pro-European middle-of-the-road politics. Neither the victory for the left in France or New Democracy’s win in Greece solves any of the underlying problems both countries face. Hard decisions have to be taken and there will be social unrest just as there was a year ago in Britain or as we suffer when doctors and bus drivers go on strike. There is no Brussels fix or German cash cow that can solve the democratic capitalist world’s core problem, one neither the US nor Europe will admit, namely that debt-driven economics and state-financing no longer works.

But just as the US keeps rolling on, so does Europe. Britain can join in a conversation about what needs to be done with the new MPs in Paris and Athens. Or we can believe the Greeks and French have made a terrible mistake and keep pumping eurosceptic iron, hoping the final crisis is only around the next corner.

UK Independence Party leader and MEP Nigel Farage. Photograph: Getty Images.
Denis MacShane is MP for Rotherham and was a minister at Foreign and Commonwealth Office
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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman