Ed Balls and Peter Mandelson find common ground on Europe

The Shadow Chancellor and former Business Secretary agree on how coalition policy is failing and wha

There is much chatter in Westminster today about an op-ed in today’s Guardian jointly penned by Ed Balls and Peter Mandelson. 

Predictably, the content of the article – arguing for a more balanced European economic agenda to stimulate growth in parallel with fiscal responsibility – attracted far less comment than the fact that its authors represent an unusual coupling. The two famously disagreed about Briatin’s prospects for euro entry when it was on the agenda in Tony Blair’s first term in government. More generally, they occupied opposing trenches for most of the long Blair-Brown civil war.

They have, it seems, patched up their differences for at least long enough to agree a position on European policy and even to share a platform at a conference this afternoon. The two Labour bigwigs sat alongside European Competition Commissioner Joaguin Almunia and former CBI Director General Richard Lambert on a discussion panel at an event hosted by the Centre for European Reform.

Predictably, Balls was asked at one point if he agreed with Lord Mandelson on the proposition (set out by the former European trade commissioner in a lecture last week) that Britain was heading for a referendum on its membership of a newly configured European Union. The shadow chancellor conceded that such an outcome might indeed by inevitable, but insisted it was not a matter of policy urgency for now. He then turned the question around to attack the government and the Tories for being unable to engage effectively in EU affairs. Ministerial fear of fanatical euroscpticism on the back benches is, said Balls, damaging British interests: “I don’t remember a time when British political leaders were less influential on decisions that have such a big impact.” David Cameron’s decision to walk away from a Brussels summit last December – the famous veto of a pan-EU fiscal stability treaty – was “catastrophic short-termism.”

Mandelson agreed, adding with more than a hint of mischief, that the government was, he believed, much more engaged and pro-European in private talks than it dared let on in public. He suggested the coalition’s real European policy was being conducted “privately, almost secretly.”

Perhaps just as interesting from a policy point of view, Ed Balls, in the discussion of how the eurozone ought to evolve in response to the current crisis, backed the idea of a unified single currency bond. He said: “There must be mutualisation of debt obligations” – which effectively means a eurobond and, by extension, a much more substantial level of financial integration among euro member states. I’m not sure the shadow chancellor has come out so explicitly on this issue before.

Also, even deeper into EU Kremlinology: Almunia was extraordinarily vocal in his criticism of the way the political process of eurozone crisis management turned into a bilateral negotiation between German Chancellor Angela Merkel and Nicolas Sarkozy. The Commissioner referred to this as a “duopoly” and expressed the hope that the next stage of the crisis might be characterised by a “return to intergovernmental” ways of doing things. This might not sound like much, but in terms of Brussels protocol it is pretty unusual for a Commissioner to slam national heads of government so explicitly. There is clearly a lot of relief on the Commission that the “Merkozy” alliance has been disbanded. 

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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Air pollution: 5 steps to vanquishing an invisible killer

A new report looks at the economics of air pollution. 

110, 150, 520... These chilling statistics are the number of deaths attributable to particulate air pollution for the cities of Southampton, Nottingham and Birmingham in 2010 respectively. Or how about 40,000 - that is the total number of UK deaths per year that are attributable the combined effects of particulate matter (PM2.5) and Nitrogen Oxides (NOx).

This situation sucks, to say the very least. But while there are no dramatic images to stir up action, these deaths are preventable and we know their cause. Road traffic is the worst culprit. Traffic is responsible for 80 per cent of NOx on high pollution roads, with diesel engines contributing the bulk of the problem.

Now a new report by ResPublica has compiled a list of ways that city councils around the UK can help. The report argues that: “The onus is on cities to create plans that can meet the health and economic challenge within a short time-frame, and identify what they need from national government to do so.”

This is a diplomatic way of saying that current government action on the subject does not go far enough – and that cities must help prod them into gear. That includes poking holes in the government’s proposed plans for new “Clean Air Zones”.

Here are just five of the ways the report suggests letting the light in and the pollution out:

1. Clean up the draft Clean Air Zones framework

Last October, the government set out its draft plans for new Clean Air Zones in the UK’s five most polluted cities, Birmingham, Derby, Leeds, Nottingham and Southampton (excluding London - where other plans are afoot). These zones will charge “polluting” vehicles to enter and can be implemented with varying levels of intensity, with three options that include cars and one that does not.

But the report argues that there is still too much potential for polluters to play dirty with the rules. Car-charging zones must be mandatory for all cities that breach the current EU standards, the report argues (not just the suggested five). Otherwise national operators who own fleets of vehicles could simply relocate outdated buses or taxis to places where they don’t have to pay.  

Different vehicles should fall under the same rules, the report added. Otherwise, taking your car rather than the bus could suddenly seem like the cost-saving option.

2. Vouchers to vouch-safe the project’s success

The government is exploring a scrappage scheme for diesel cars, to help get the worst and oldest polluting vehicles off the road. But as the report points out, blanket scrappage could simply put a whole load of new fossil-fuel cars on the road.

Instead, ResPublica suggests using the revenue from the Clean Air Zone charges, plus hiked vehicle registration fees, to create “Pollution Reduction Vouchers”.

Low-income households with older cars, that would be liable to charging, could then use the vouchers to help secure alternative transport, buy a new and compliant car, or retrofit their existing vehicle with new technology.

3. Extend Vehicle Excise Duty

Vehicle Excise Duty is currently only tiered by how much CO2 pollution a car creates for the first year. After that it becomes a flat rate for all cars under £40,000. The report suggests changing this so that the most polluting vehicles for CO2, NOx and PM2.5 continue to pay higher rates throughout their life span.

For ClientEarth CEO James Thornton, changes to vehicle excise duty are key to moving people onto cleaner modes of transport: “We need a network of clean air zones to keep the most polluting diesel vehicles from the most polluted parts of our towns and cities and incentives such as a targeted scrappage scheme and changes to vehicle excise duty to move people onto cleaner modes of transport.”

4. Repurposed car parks

You would think city bosses would want less cars in the centre of town. But while less cars is good news for oxygen-breathers, it is bad news for city budgets reliant on parking charges. But using car parks to tap into new revenue from property development and joint ventures could help cities reverse this thinking.

5. Prioritise public awareness

Charge zones can be understandably unpopular. In 2008, a referendum in Manchester defeated the idea of congestion charging. So a big effort is needed to raise public awareness of the health crisis our roads have caused. Metro mayors should outline pollution plans in their manifestos, the report suggests. And cities can take advantage of their existing assets. For example in London there are plans to use electronics in the Underground to update travellers on the air pollution levels.

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Change is already in the air. Southampton has used money from the Local Sustainable Travel Fund to run a successful messaging campaign. And in 2011 Nottingham City Council became the first city to implement a Workplace Parking levy – a scheme which has raised £35.3m to help extend its tram system, upgrade the station and purchase electric buses.

But many more “air necessities” are needed before we can forget about pollution’s worry and its strife.  

 

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