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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Unite stewards urge members to back Owen Smith

In a letter to Unite members, the officials have called for a vote for the longshot candidate.

29 Unite officials have broken ranks and thrown their weight behind Owen Smith’s longshot bid for the Labour leadership in an open letter to their members.

The officials serve as stewards, conveners and negotiators in Britain’s aerospace and shipbuilding industries, and are believed in part to be driven by Jeremy Corbyn’s longstanding opposition to the nuclear deterrent and defence spending more generally.

In the letter to Unite members, who are believed to have been signed up in large numbers to vote in the Labour leadership race, the stewards highlight Smith’s support for extra funding in the NHS and his vision for an industrial strategy.

Corbyn was endorsed by Unite, Labour's largest affliated union and the largest trades union in the country, following votes by Unite's ruling executive committee and policy conference. 

Although few expect the intervention to have a decisive role in the Labour leadership, regarded as a formality for Corbyn, the opposition of Unite workers in these industries may prove significant in Len McCluskey’s bid to be re-elected as general secretary of Unite.

 

The full letter is below:

Britain needs a Labour Government to defend jobs, industry and skills and to promote strong trade unions. As convenors and shop stewards in the manufacturing, defence, aerospace and energy sectors we believe that Owen Smith is the best candidate to lead the Labour Party in opposition and in government.

Owen has made clear his support for the industries we work in. He has spelt out his vision for an industrial strategy which supports great British businesses: investing in infrastructure, research and development, skills and training. He has set out ways to back British industry with new procurement rules to protect jobs and contracts from being outsourced to the lowest bidder. He has demanded a seat at the table during the Brexit negotiations to defend trade union and workers’ rights. Defending manufacturing jobs threatened by Brexit must be at the forefront of the negotiations. He has called for the final deal to be put to the British people via a second referendum or at a general election.

But Owen has also talked about the issues which affect our families and our communities. Investing £60 billion extra over 5 years in the NHS funded through new taxes on the wealthiest. Building 300,000 new homes a year over 5 years, half of which should be social housing. Investing in Sure Start schemes by scrapping the charitable status of private schools. That’s why we are backing Owen.

The Labour Party is at a crossroads. We cannot ignore reality – we need to be radical but we also need to be credible – capable of winning the support of the British people. We need an effective Opposition and we need a Labour Government to put policies into practice that will defend our members’ and their families’ interests. That’s why we are backing Owen.

Steve Hibbert, Convenor Rolls Royce, Derby
Howard Turner, Senior Steward, Walter Frank & Sons Limited
Danny Coleman, Branch Secretary, GE Aviation, Wales
Karl Daly, Deputy Convenor, Rolls Royce, Derby
Nigel Stott, Convenor, BASSA, British Airways
John Brough, Works Convenor, Rolls Royce, Barnoldswick
John Bennett, Site Convenor, Babcock Marine, Devonport, Plymouth
Kevin Langford, Mechanical Convenor, Babcock, Devonport, Plymouth
John McAllister, Convenor, Vector Aerospace Helicopter Services
Garry Andrews, Works Convenor, Rolls Royce, Sunderland
Steve Froggatt, Deputy Convenor, Rolls Royce, Derby
Jim McGivern, Convenor, Rolls Royce, Derby
Alan Bird, Chairman & Senior Rep, Rolls Royce, Derby
Raymond Duguid, Convenor, Babcock, Rosyth
Steve Duke, Senior Staff Rep, Rolls Royce, Barnoldswick
Paul Welsh, Works Convenor, Brush Electrical Machines, Loughborough
Bob Holmes, Manual Convenor, BAE Systems, Warton, Lancs
Simon Hemmings, Staff Convenor, Rolls Royce, Derby
Mick Forbes, Works Convenor, GKN, Birmingham
Ian Bestwick, Chief Negotiator, Rolls Royce Submarines, Derby
Mark Barron, Senior Staff Rep, Pallion, Sunderland
Ian Hodgkison, Chief Negotiator, PCO, Rolls Royce
Joe O’Gorman, Convenor, BAE Systems, Maritime Services, Portsmouth
Azza Samms, Manual Workers Convenor, BAE Systems Submarines, Barrow
Dave Thompson, Staff Convenor, BAE Systems Submarines, Barrow
Tim Griffiths, Convenor, BAE Systems Submarines, Barrow
Paul Blake, Convenor, Princess Yachts, Plymouth
Steve Jones, Convenor, Rolls Royce, Bristol
Colin Gosling, Senior Rep, Siemens Traffic Solutions, Poole

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.