The Tories' attack on the unions lacks credibility

The Conservative claim that Unite has taken over the Labour Party is absurd.

Here is the new poster the Conservatives have just released, attacking Labour's financial links with Britain's largest trade union, Unite.

It's part of a fierce assault on the union this morning, with the Tories also launching an attack document on the subject and Michael Gove delivering a speech on "Charlie Whelan's new militant tendency".

Brown poster

The Tories aren't wrong to point out Labour's increasing financial dependency on the unions. Last year unions were responsible for 64 per cent (£9.8m) of all donations to the party, with Unite alone accounting for 25 per cent (£3.6m). But isn't this all rather nauseating, coming from a party that for so many years was sustained by the non-domiciled Michael Ashcroft?

As I've argued before, there is no comparison between the donations Labour receives from Unite's political fund (to which nearly 1.3 million members voluntarily contribute) and the millions the Tories receive from Ashcroft, a man who has sat in the legislature for nearly a decade without having the decency to become a full UK taxpayer.

Gove's claim that Labour's political strategy is now dictated by the unions isn't much more convincing. Here's a key passage:

Class warfare has not only been resurrected; it has been elevated to holy principle, used in every possible circumstance including, most famously, in vicious, aggressive and direct attacks from a prime minister who purports to govern in the national interest.

His description of Gordon Brown's rather amusing joke about "the playing fields of Eton" as "vicious, aggressive and direct" is absurd and delusional.

The party's decision to list the 108 MPs who belong to Unite, as if this proves that the party has been infiltrated by a hard-left sect, is equally laughable. It ignores that almost every Labour MP is obliged to belong to a union (after all, the party was founded by them).

Thus, ludicrously, Alan Milburn is at once "outed" as a member of Unite, while also being cited by Gove as a New Labour reformer who has quit parliament in horror at the rise of the unions.

But the Tories, for whom the looming British Airways strike is a political gift, aren't concerned with such objections: they've got an election to win. And today, buoyed by the latest polls and the European Commission's criticism of the government's deficit strategy, they've put Labour on the back foot for the first time in weeks.

Labour should respond not only by pointing out the contradictions I've outlined, but also by arguing that the Tories are rather more vulnerable to the charge of offering policies for cash.

As my colleague James Macintyre pointed out last year, a number of major Tory donors stand to gain more than £500,000 each from Cameron's plan to slash inheritance tax. Labour now needs to go on the attack -- and soon.

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George Eaton is political editor of the New Statesman.

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Why Angela Merkel's comments about the UK and US shouldn't be given too much weight

The Chancellor's comments are aimed at a domestic and European audience, and she won't be abandoning Anglo-German relationships just yet.

Angela Merkel’s latest remarks do not seem well-judged but should not be given undue significance. Speaking as part of a rally in Munich for her sister party, the CSU, the German Chancellor claimed “we Europeans must really take our own fate into our hands”.

The comments should be read in the context of September's German elections and Merkel’s determination to restrain the fortune of her main political rival, Martin Schulz – obviously a strong Europhile and a committed Trump critic. Sigmar Gabriel - previously seen as a candidate to lead the left-wing SPD - has for some time been pressing for Germany and Europe to have “enough self-confidence” to stand up to Trump. He called for a “self-confident position, not just on behalf of us Germans but all Europeans”. Merkel is in part responding to this pressure.

Her words were well received by her audience. The beer hall crowd erupted into sustained applause. But taking an implicit pop at Donald Trump is hardly likely to be a divisive tactic at such a gathering. Criticising the UK post-Brexit and the US under Trump is the sort of virtue signalling guaranteed to ensure a good clap.

It’s not clear that the comments represent that much of a new departure, as she herself has since claimed. She said something similar earlier this year. In January, after the publication of Donald Trump’s interview with The Times and Bild, she said that “we Europeans have our fate in our own hands”.

At one level what Merkel said is something of a truism: in two year’s time Britain will no longer be directly deciding the fate of the EU. In future no British Prime Minister will attend the European Council, and British MEPs will leave the Parliament at the next round of European elections in 2019. Yet Merkel’s words “we Europeans”, conflate Europe and the EU, something she has previously rejected. Back in July last year, at a joint press conference with Theresa May, she said: “the UK after all remains part of Europe, if not of the Union”.

At the same press conference, Merkel also confirmed that the EU and the UK would need to continue to work together. At that time she even used the first person plural to include Britain, saying “we have certain missions also to fulfil with the rest of the world” – there the ‘we’ meant Britain and the EU, now the 'we' excludes Britain.

Her comments surely also mark a frustration born of difficulties at the G7 summit over climate change, but Britain and Germany agreed at the meeting in Sicily on the Paris Accord. More broadly, the next few months will be crucial for determining the future relationship between Britain and the EU. There will be many difficult negotiations ahead.

Merkel is widely expected to remain the German Chancellor after this autumn’s election. As the single most powerful individual in the EU27, she is the most crucial person in determining future relations between the UK and the EU. Indeed, to some extent, it was her intransigence during Cameron’s ‘renegotiation’ which precipitated Brexit itself. She also needs to watch with care growing irritation across the EU at the (perceived) extent of German influence and control over the institutions and direction of the European project. Recent reports in the Frankfurter Allgemeine Zeitung which suggested a Merkel plan for Jens Weidmann of the Bundesbank to succeed Mario Draghi at the ECB have not gone down well across southern Europe. For those critics, the hands controlling the fate of Europe are Merkel’s.

Brexit remains a crucial challenge for the EU. How the issue is handled will shape the future of the Union. Many across Europe’s capitals are worried that Brussels risks driving Britain further away than Brexit will require; they are worried lest the Channel becomes metaphorically wider and Britain turns its back on the continent. On the UK side, Theresa May has accepted the EU, and particularly Merkel’s, insistence, that there can be no cherry picking, and therefore she has committed to leaving the single market as well as the EU. May has offered a “deep and special” partnership and a comprehensive free trading arrangement. Merkel should welcome Britain’s clarity. She must work with new French President Emmanuel Macron and others to lead the EU towards a new relationship with Britain – a close partnership which protects free trade, security and the other forms of cooperation which benefit all Europeans.

Henry Newman is the director of Open Europe. He tweets @henrynewman.

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