The EU treaty is a disaster for the left

Stop crowing about Cameron – this is just the latest attack on European democracy.

Stop your crowing about Cameron leaving Britain marginalised, lefties. The proposed EU treaty is perhaps the biggest catastrophe to befall the European left since the Second World War.

Sounds like semi-deranged hyperbole? Consider this: as Paul Mason has written, "by enshrining in national and international law the need for balanced budgets and near-zero structural deficits, the eurozone has outlawed expansionary fiscal policy".

Read that last bit carefully. Left-wing governments of all hues will, in effect, be banned by this treaty. If the French or the German left returns to power in the near future (and both are in a good position to do so), it will be illegal for them to respond to the global economic catastrophe with anything but austerity. An economic stimulus is forbidden – because the treaty has buried Keynesianism.

Cameron opposed the treaty because he feared the effect it would have on the City, which, after all, bankrolls his party. But just because he opposed the treaty doesn't mean the automatic response of the left should be to throw its weight behind it. I proudly marched against the invasion of Iraq; I wasn't deterred by the fact the BNP opposed it, too.

François Hollande – the Socialist candidate for the French presidency – has already spoken out against a treaty cooked up by Europe's overwhelmingly right-of-centre governments. If we're going to listen to European leaders, Hollande is a sounder bet than avowed right-wingers like Nicolas Sarkozy and Angela Merkel.

After this stitch-up, the left really needs to have a long, hard think about its attitude to the EU as it is currently constructed. There's still a sense that any criticism of the EU puts you in the same box as swivel-eyed Ukip-ers who rant about gypsies in shire inns. But there's a powerful left critique that needs to be made.

We've already had elected governments in Italy and Greece toppled by the bond markets with the complicity of senior EU figures. Successive compacts (such as the Lisbon Treaty) have enshrined the privatisation of public services. It was EU Directive 9/440 that made it a legal requirement for private companies to be able to run train services, and the European Court of Justice has issued judgments that have attacked workers' rights, much as making it possible for individuals to sue unions.

The new treaty is just the latest attack on European democracy – and against the European left. So let's stop taunting Cameron, and start working out how we can unite with the European labour movement to stop this total disaster in its tracks.

Owen Jones's "Chavs: the Demonization of the Working Class" is published by Verso (£14.99).

Owen Jones is a left-wing columnist, author and commentator. He is a contributing writer to the New Statesman and writes a weekly column for the Guardian. He has published two books, Chavs: the Demonisation of the Working Class and The Establishment and How They Get Away With It.

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Will Euroscepticism prove an unbeatable advantage in the Conservative leadership race?

Conservative members who are eager for Brexit are still searching for a heavyweight champion - and they could yet inherit the earth.

Put your money on Liam Fox? The former Defence Secretary has been given a boost by the news that ConservativeHome’s rolling survey of party members preferences for the next Conservative leader. Jeremy Wilson at BusinessInsider and James Millar at the Sunday Post have both tipped Fox for the top job.

Are they right? The expectation among Conservative MPs is that there will be several candidates from the Tory right: Dominic Raab, Priti Patel and potentially Owen Paterson could all be candidates, while Boris Johnson, in the words of one: “rides both horses – is he the candidate of the left, of the right, or both?”

MPs will whittle down the field of candidates to a top two, who will then be voted on by the membership.  (As Graham Brady, chair of the 1922 Committee, notes in his interview with my colleague George Eaton, Conservative MPs could choose to offer a wider field if they so desired, but would be unlikely to surrender more power to party activists.)

The extreme likelihood is that that contest will be between two candidates: George Osborne and not-George Osborne.  “We know that the Chancellor has a bye to the final,” one minister observes, “But once you’re in the final – well, then it’s anyone’s game.”

Could “not-George Osborne” be Liam Fox? Well, the difficulty, as one MP observes, is we don’t really know what the Conservative leadership election is about:

“We don’t even know what the questions are to which the candidates will attempt to present themselves as the answer. Usually, that question would be: who can win us the election? But now that Labour have Corbyn, that question is taken care of.”

So what’s the question that MPs will be asking? We simply don’t know – and it may be that they come to a very different conclusion to their members, just as in 2001, when Ken Clarke won among MPs – before being defeated in a landslide by Conservative activists.

Much depends not only on the outcome of the European referendum, but also on its conduct. If the contest is particularly bruising, it may be that MPs are looking for a candidate who will “heal and settle”, in the words of one. That would disadvantage Fox, who will likely be a combative presence in the European referendum, and could benefit Boris Johnson, who, as one MP put it, “rides both horses” and will be less intimately linked with the referendum and its outcome than Osborne.

But equally, it could be that Euroscepticism proves to be a less powerful card than we currently expect. Ignoring the not inconsiderable organisational hurdles that have to be cleared to beat Theresa May, Boris Johnson, and potentially any or all of the “next generation” of Sajid Javid, Nicky Morgan or Stephen Crabb, we simply don’t know what the reaction of Conservative members to the In-Out referendum will be.

Firstly, there’s a non-trivial possibility that Leave could still win, despite its difficulties at centre-forward. The incentive to “reward” an Outer will be smaller. But if Britain votes to Remain – and if that vote is seen by Conservative members as the result of “dirty tricks” by the Conservative leadership – it could be that many members, far from sticking around for another three to four years to vote in the election, simply decide to leave. The last time that Cameron went against the dearest instincts of many of his party grassroots, the result was victory for the Prime Minister – and an activist base that, as the result of defections to Ukip and cancelled membership fees, is more socially liberal and more sympathetic to Cameron than it was before. Don’t forget that, for all the worry about “entryism” in the Labour leadership, it was “exitism” – of Labour members who supported David Miliband and liked the New Labour years  - that shifted that party towards Jeremy Corbyn.

It could be that if – as Brady predicts in this week’s New Statesman – the final two is an Inner and an Outer, the Eurosceptic candidate finds that the members who might have backed them are simply no longer around.

It comes back to the biggest known unknown in the race to succeed Cameron: Conservative members. For the first time in British political history, a Prime Minister will be chosen, not by MPs with an electoral mandate of their own or by voters at a general election but by an entirelyself-selecting group: party members. And we simply don't know enough about what they feel - yet. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.