One Nation Labour looks more like West Germany than East

If Cameron wants an accurate comparison for Labour's policies, he should look to modern Germany.

David Cameron told the Sun yesterday that Ed Miliband’s "one nation" philosophy "sounded more like East Germany than Great Britain". The irony here is that what few policies Labour has revealed look startlingly like the political economy of the Federal Republic of Germany more than anything else. 

Workers on company boards

Labour has pledged to put an employee on the remuneration committee of large companies. What has gone unnoticed about this policy is that remuneration committees are a subcommittee of companies’ board of directors: putting an elected employee on the committee would mean having at least one on the company’s board. Miliband hinted as much in his first conference Q&A.

In Germany, large firms’ supervisory boards are 50% elected by workers, and 50% by shareholders – a process called co-determination, or Mitbestimmungsgesetz. The supervisory board in turn elects the firm’s management board and approves all major decisions. This system where workers and capital owners play fairly equal parts is in contrast to the Anglosphere view of company boards as being the exclusive petty fiefdom of shareholders.

It’s not surprising that Ed Miliband has sold this co-determination policy indirectly, in terms of tackling executive pay – reform of corporate governance is hardly sexy stuff for the electorate. While one worker is hardly going to be able to outvote shareholders, Miliband’s former senior policy advisor Sonia Sodha tells me the policy is "an important first step to something more significant".

Vocational qualifications and apprenticeships

Technical and vocational schools are a fundamental part of Germany’s economy, where vocational education actually outstrips academic study and about half of 16-18 year old school leavers take apprenticeships – compared to 9% in the UK.

Two Labour policies lean in this direction: Ed Miliband’s big conference announcement that he would introduce a new "Technical Bacc" route for the "forgotten 50%" not going into higher education was welcomed by further education leaders as a strong way of promoting technical education. Ed’s pledge that all public contractors would have to offer apprenticeship schemes to be considered for tender it also designed change the situation where under a third of large UK firms offer apprenticeships – and bring it closer to the German state of affairs, where nearly all do.

State investment bank

Founded in 1948 as part of the Marshall Plan, Germany’s state investment bank, the KfW, or Kreditanstalt für Wiederaufbau - meaning Reconstruction Credit Institute, is a cornerstone of the country’s active industrial policy. The country’s technology minister sits on the bank’s 37-member board. 

The bank provides cheap finance for housing projects, environmental projects and small and medium sized businesses, particularly those looking to export. Widely regarded as the "safest bank in the world", in the words of the bank’s Chair Ulrich Schroeder, the KfW is active "only in areas where the market does not provide a satisfactory solution".

Shadow business secretary Chuka Umunna visited Germany in February to take a look at the country’s banking system, including the not-for profit Sparkassen and local-authority controlled Landsbanks: it’s not hard to see the connection between Mr Schroeder’s views, Labour’s state investment bank policy, and Miliband’s explicit aim to address market failure in SME finance.

Cooperative trade unions

In Miliband’s second Q&A to the Labour conference, he spoke of a role for business and trade unions as partners in enterprise rather than adversaries. Ed cited the car industry and the Olympics as an example of the sort of cooperation he’d like to see between unions and employers.

This kind of cooperation is straight out of German political economy. On top of participating in institutionalised co-determination, German unions are otherwise central to the country’s economic strategy. In the British car industry Miliband speaks of unions actually hold down wages: this is the strategy of German manufacturing exporters, who held down their unit labour cost, internally devaluing the cost of their exports to other countries and causing an export boom that left them with a €140.3bn trade surplus in 2010 – the highest in the EU. (Conversely, UK has the biggest deficit.) This is, incidentally, the internal devaluation which the PIIGS countries are now struggling to replicate through austerity in order to be able to compete in export markets.

Labour’s support for a public sector pay freeze was justified in terms of prioritising "jobs over wages". If this attitude continues then expect to see it implicitly articulated for the private sector as well.

Under Miliband's leadership, Labour has looked to Germany's social market economy for inspiration. Photograph: Getty Images.

Jon Stone is a political journalist. He tweets as @joncstone.

John Moore
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The man who created the fake Tube sign explains why he did it

"We need to consider the fact that fake news isn't always fake news at the source," says John Moore.

"I wrote that at 8 o'clock on the evening and before midday the next day it had been read out in the Houses of Parliament."

John Moore, a 44-year-old doctor from Windsor, is describing the whirlwind process by which his social media response to Wednesday's Westminster attack became national news.

Moore used a Tube-sign generator on the evening after the attack to create a sign on a TfL Service Announcement board that read: "All terrorists are politely reminded that THIS IS LONDON and whatever you do to us we will drink tea and jolly well carry on thank you." Within three hours, it had just fifty shares. By the morning, it had accumulated 200. Yet by the afternoon, over 30,000 people had shared Moore's post, which was then read aloud on BBC Radio 4 and called a "wonderful tribute" by prime minister Theresa May, who at the time believed it was a genuine Underground sign. 

"I think you have to be very mindful of how powerful the internet is," says Moore, whose viral post was quickly debunked by social media users and then national newspapers such as the Guardian and the Sun. On Thursday, the online world split into two camps: those spreading the word that the sign was "fake news" and urging people not to share it, and those who said that it didn't matter that it was fake - the sentiment was what was important. 

Moore agrees with the latter camp. "I never claimed it was a real tube sign, I never claimed that at all," he says. "In my opinion the only fake news about that sign is that it has been reported as fake news. It was literally just how I was feeling at the time."

Moore was motivated to create and post the sign when he was struck by the "very British response" to the Westminster attack. "There was no sort of knee-jerk Islamaphobia, there was no dramatisation, it was all pretty much, I thought, very calm reporting," he says. "So my initial thought at the time was just a bit of pride in how London had reacted really." Though he saw other, real Tube signs online, he wanted to create his own in order to create a tribute that specifically epitomised the "very London" response. 

Yet though Moore insists he never claimed the sign was real, his caption on the image - which now has 100,800 shares - is arguably misleading. "Quintessentially British..." Moore wrote on his Facebook post, and agrees now that this was ambiguous. "It was meant to relate to the reaction that I saw in London in that day which I just thought was very calm and measured. What the sign was trying to do was capture the spirit I'd seen, so that's what I was actually talking about."

Not only did Moore not mean to mislead, he is actually shocked that anyone thought the sign was real. 

"I'm reasonably digitally savvy and I was extremely shocked that anyone thought it was real," he says, explaining that he thought everyone would be able to spot a fake after a "You ain't no muslim bruv" sign went viral after the Leytonstone Tube attack in 2015. "I thought this is an internet meme that people know isn't true and it's fine to do because this is a digital thing in a digital world."

Yet despite his intentions, Moore's sign has become the centre of debate about whether "nice" fake news is as problematic as that which was notoriously spread during the 2016 United States Presidential elections. Though Moore can understand this perspective, he ultimately feels as though the sentiment behind the sign makes it acceptable. 

"I use the word fake in inverted commas because I think fake implies the intention to deceive and there wasn't [any]... I think if the sentiment is ok then I think it is ok. I think if you were trying to be divisive and you were trying to stir up controversy or influence people's behaviour then perhaps I wouldn't have chosen that forum but I think when you're only expressing your own emotion, I think it's ok.

"The fact that it became so-called fake news was down to other people's interpretation and not down to the actual intention... So in many interesting ways you can see that fake news doesn't even have to originate from the source of the news."

Though Moore was initially "extremely shocked" at the reponse to his post, he says that on reflection he is "pretty proud". 

"I'm glad that other people, even the powers that be, found it an appropriate phrase to use," he says. "I also think social media is often denigrated as a source of evil and bad things in the world, but on occasion I think it can be used for very positive things. I think the vast majority of people who shared my post and liked my post have actually found the phrase and the sentiment useful to them, so I think we have to give social media a fair judgement at times and respect the fact it can be a source for good."

Amelia Tait is a technology and digital culture writer at the New Statesman.