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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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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