Cameron goes hard on the euro – but is this a sensible strategy?

Blame-shifting may be politically expedient, but burning bridges with the eurozone is not going to h

It all started with PMQs on Wednesday, when David Cameron said that the eurozone should “make up or it is looking at a potential break up”. In a speech yesterday, he reiterated the message, telling business leaders that “the return of a crisis that never really went away” should end the current dithering. Now, for the third time in 24 hours, the Prime Minister has pushed the issue of a eurozone break up, this time during a conference call with EU leaders.

Speaking to Angela Merkel, Francois Hollande, Mario Monti, Herman Van Rompuy (president of the European Council), and Jose Manuel Barroso (president of the European Commission), the Prime Minister said that Germany should do more to prevent the single currency from unravelling.

It’s unlikely that this will go down well with Merkel, the German chancellor. Indeed, it’s unlikely that any of it will go down well with EU power-brokers. The fact that Cameron is repeatedly stoking fears of a eurozone break up will probably sour relations ahead of this weekend’s G8 summit. Cameron has defended his aggressive approach on the grounds that Britain’s future is so tied up in the eurozone that it is necessary to put diplomatic niceties to one side. Yet given his unwillingness to help broker a deal, this seems counter-productive.

As the Labour MEP Mary Honeyball put it in a strongly worded blog yesterday:

Cameron’s arrogance and unwillingness to engage with European leaders does not even come from a position of strength. Britain is struggling with a double-dip recession thanks to the Tory-led coalition. What is it that makes Cameron believe he can attack the Eurozone when his own and Chancellor George Osborne’s economic competence is so severely lacking?

. . .

It is becoming ever clearer that the UK   cannot go it alone. Our economy is well and truly tied up with the Eurozone. To believe anything else is to regress to some kind of post imperial cloud-cuckoo land when the EU did not exist and Britain was great.

Of course, it is obvious what the Prime Minister is doing. The country is back in recession and Labour are now neck and neck with the Conservatives on economic competence for the first time in this government, even overtaking them in some polls. No 10 has decided to go big on the single currency. The reasons for this are two-fold. Firstly, it detracts attention from their own floundering economic policy, and a show of strength over Europe may give Cameron a short term popularity boost with his own backbenchers and the public. Secondly, it is an attempt to redefine the debate on the economy – a debate which the government has lost control of in recent weeks – by casting the eurozone as the main factor in Britain’s continued economic woes. It is not a new approach – the first two years of coalition have been defined by an emphasis on the “mess left by Labour” – but it is a shifting of the blame.

There is some logic to this strategy – there is certainly no shortage of struggling foreign economies at which to point the finger. But ultimately, it is unhelpful. As a Guardian editorial argues today:

Britain is not uniquely virtuous in the face of global economic downturn and institutional failure. In fact, Britain is not particularly virtuous at all. We are in recession again because that is the logical outcome of the policies followed by this, not any other, government.

Blame-shifting may be politically expedient, but burning bridges with the eurozone is not going to help find solutions.
 

Angela Merkel and David Cameron, Berlin, Germany, November 2011. Photograph: Getty Images

Samira Shackle is a freelance journalist, who tweets @samirashackle. She was formerly a staff writer for the New Statesman.

Photo: Getty
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The rise of the green mayor – Sadiq Khan and the politics of clean energy

At an event at Tate Modern, Sadiq Khan pledged to clean up London's act.

On Thursday night, deep in the bowls of Tate Modern’s turbine hall, London Mayor Sadiq Khan renewed his promise to make the capital a world leader in clean energy and air. Yet his focus was as much on people as power plants – in particular, the need for local authorities to lead where central governments will not.

Khan was there to introduce the screening of a new documentary, From the Ashes, about the demise of the American coal industry. As he noted, Britain continues to battle against the legacy of fossil fuels: “In London today we burn very little coal but we are facing new air pollution challenges brought about for different reasons." 

At a time when the world's leaders are struggling to keep international agreements on climate change afloat, what can mayors do? Khan has pledged to buy only hybrid and zero-emissions buses from next year, and is working towards London becoming a zero carbon city.

Khan has, of course, also gained heroic status for being a bête noire of climate-change-denier-in-chief Donald Trump. On the US president's withdrawal from the Paris Agreement, Khan quipped: “If only he had withdrawn from Twitter.” He had more favourable things to say about the former mayor of New York and climate change activist Michael Bloomberg, who Khan said hailed from “the second greatest city in the world.”

Yet behind his humour was a serious point. Local authorities are having to pick up where both countries' central governments are leaving a void – in improving our air and supporting renewable technology and jobs. Most concerning of all, perhaps, is the way that interest groups representing business are slashing away at the regulations which protect public health, and claiming it as a virtue.

In the UK, documents leaked to Greenpeace’s energy desk show that a government-backed initiative considered proposals for reducing EU rules on fire-safety on the very day of the Grenfell Tower fire. The director of this Red Tape Initiative, Nick Tyrone, told the Guardian that these proposals were rejected. Yet government attempts to water down other EU regulations, such as the energy efficiency directive, still stand.

In America, this blame-game is even more highly charged. Republicans have sworn to replace what they describe as Obama’s “war on coal” with a war on regulation. “I am taking historic steps to lift the restrictions on American energy, to reverse government intrusion, and to cancel job-killing regulations,” Trump announced in March. While he has vowed “to promote clean air and clear water,” he has almost simultaneously signed an order to unravel the Clean Water Rule.

This rhetoric is hurting the very people it claims to protect: miners. From the Ashes shows the many ways that the industry harms wider public health, from water contamination, to air pollution. It also makes a strong case that the American coal industry is in terminal decline, regardless of possibile interventions from government or carbon capture.

Charities like Bloomberg can only do so much to pick up the pieces. The foundation, which helped fund the film, now not only helps support job training programs in coal communities after the Trump administration pulled their funding, but in recent weeks it also promised $15m to UN efforts to tackle climate change – again to help cover Trump's withdrawal from Paris Agreement. “I'm a bit worried about how many cards we're going to have to keep adding to the end of the film”, joked Antha Williams, a Bloomberg representative at the screening, with gallows humour.

Hope also lies with local governments and mayors. The publication of the mayor’s own environment strategy is coming “soon”. Speaking in panel discussion after the film, his deputy mayor for environment and energy, Shirley Rodrigues, described the move to a cleaner future as "an inevitable transition".

Confronting the troubled legacies of our fossil fuel past will not be easy. "We have our own experiences here of our coal mining communities being devastated by the closure of their mines," said Khan. But clean air begins with clean politics; maintaining old ways at the price of health is not one any government must pay. 

'From The Ashes' will premiere on National Geograhpic in the United Kingdom at 9pm on Tuesday, June 27th.

India Bourke is an environment writer and editorial assistant at the New Statesman.

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