Did no-one spot that Britain is leaving the EU in five years' time?

It didn't get much attention but a draft European treaty leaked last week maps out a course that, if

Despite the twin facts that European Union affairs came to dominate political news towards the end of last year and the eurozone crisis remains the single most important factor in deciding whether or not the UK economy can recover in 2012, Britain - or rather the British media - just don't seem to be able to sustain in interest in the EU for very long.

Most of the political coverage and commentary in the weekend just passed has focused on two themes: the troubles with Ed Miliband's leadership and David Cameron's ambitions to occupy the electorally popular terrain of moral outrage at the excesses of freewheeling capitalism.

Hardly anyone seems to have noticed or picked up on an extraordinary scoop on Friday by ITV business correspondent Laura Kuenssberg - a draft copy of the proposed new treaty for Eurozone members and their fellow EU travellers. This, remember, is the document that David Cameron will not sign. Its very existence rather contradicts the established story that the prime minister somehow wielded a "veto", since - as has subsequently been noted on a number of occasions - a veto prevents something from happening. And yet here, the other 26 members of the Union are pressing ahead with their plans unimpeded by grumpy Britain.

And, as Evan Davis successfully established in his interview with Cameron on Friday, the fact of the UK's exclusion doesn't actually guarantee any of the safeguards for the British financial services industry, procurement of which was the ostensible motive for wielding a "veto" in the first place.

Of course, the document revealed last week is just the starting point for negotiations. There is a European summit due at the end of this month when the real work of putting a new treaty together will get under way. How much influence Cameron will have over that process is an open question - as is the matter of how much leeway his party will give him to inch back towards a slightly more cooperative stance (as Nick Clegg insists ought to be the case). One thing helping Cameron is the fact that several of the proposed signatories to the euro-plus pact share Britain's concerns about a hardcore fiscal union run, essentially, by Paris and Berlin. The 26 v 1 scenario that emerged at the end of last year masks more subtle diplomatic manoeuvres as negotiations around an actual treaty proceed.

Still, the outcome is looking very tricky indeed for Cameron.

Here are just a few paragraphs that stand out from the draft treaty (written, as usual, in the arcane jargon of European legal documents):

The Contracting Parties undertake to work jointly towards an economic policy fostering the smooth functioning of the Economic and Monetary Union and economic growth through enhanced convergence and competitiveness. In this context, particular attention shall be paid to all developments which, if allowed to persist, might threaten stability, competitiveness and future growth and job creation. To this aim, they will take all necessary actions, including through the Euro Plus Pact.

That sounds a lot as if the inner core of EU members that sign up to the treaty (i.e. not Britain) will be talking on a regular basis about all sorts of economic plans that cut across the wider single market. The idea of the europlus group hatching a "competitiveness" agenda without consulting London will be completely unacceptable to the UK.

With a view to benchmarking best practices, the Contracting Parties ensure that all major economic policy reforms that they plan to undertake will be discussed ex-ante and, where appropriate, coordinated among themselves. This coordination shall involve the institutions of the European Union as required by the law of the Union.

So that confirms it - the euro-plus group will set the economic agenda for the whole EU in advance of Brussels summits and then railroad their plans through the Council.

The President of the Euro Summit shall keep the other Member States of the European Union closely informed of the preparation and outcome of the Euro Summit meetings.

Britain will be allowed to find out what has been arranged in her absence and invited to agree.

Within five years at most following the entry into force of this Treaty, on the basis of an assessment of the experience with its implementation, an initiative shall be launched, in compliance with the provisions of the Treaty on the European Union and the Treaty on the Functioning of the European Union, with the aim of incorporating the substance of this Treaty into the legal framework of the European Union.

And eventually - in the not too distant future - whatever grand new economic schemes have been settled by all of the signatories to the new treaty will be presented to the non-signatories as a fait accompli and turned into a new pan-EU treaty after all. At that point Britain will have to sign up (having had minimal input) on a take it or leave it basis. It is very hard to see any government agreeing to that, let alone parliament ratifying it, whoever is running the government by 2017.

In other words, this draft treaty sets up a framework and a timetable for the evolution of European economic policy as mediated by EU institutions that, if not substantially amended, all but guarantees Britain's departure from the Union. Not long ago it was scarcely thinkable; a distant hope for the most hardline sceptics. Now it's all queued up to happen in five years' time. It is odd, to say the least, that this didn't get more coverage over the weekend.

 

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

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Jeremy Corbyn is not standing down - 172 people cannot drown out democracy

The Labour Party could right now be exploiting a bitter Conservative leadership contest, writes shadow chancellor John McDonnell. 

The shadow chancellor writes exclusively for The New Statesman amid one of the most turbulent weeks in politics this century.

The “coup” taking place in the Labour Party

The instability from Brexit has extended into the Parliamentary Labour Party with members of the shadow cabinet standing down. I would like to thank all of those who have participated with me for their work.

Frustratingly, this has come at the worst possible time for our country. And at a time in which we our party could have used to reset the economic narrative that the Tories planted in the public during the summer of 2010 when our party was in the midst of a leadership contest.

Our party right now could be exploiting a bitter Conservative leadership contest that’ll probably lead to electing a Tory leader who will be responsible for any economic fallout from Brexit. The Tories have peddled lies over the past six years over the management of our economy and the state of the public finance, which the decision last Thursday is sadly exposing.

I strongly believe that if some colleagues are not careful then they may cause irreparable damage to our party and the country. 

The Labour Party changed last September. Jeremy was elected with the largest mandate of any political leader in the history of our country. Our party’s values of democracy and solidarity seem to be asked of the membership and always met. Sadly not by some members of the PLP. 

There are those in our party who could not come to terms with the fact that a quarter of a million members could clearly see that the our party’s broken election model has lead to two back to back defeats and needed replacing. Like the wisdom of crowds, our membership understands that we cant keep going on doing the same thing electorally and getting the same results.

I believe that we can all still work together, but I feel some MPs need to get off their chest what they have been holding back since last Autumn. Maybe then they will hear the message that our membership sent them.

The truth is that Jeremy is not standing down. In the Labour Party our members are sovereign. There was an election held and a decision made, and 172 people cannot outweigh a quarter of a million others. 

It would risk sending the worst possible message we could send as a party to the electorate - that Labour does not respect the democratic process.

The economics of Brexit

The Leave vote delivered an immense shock to the political system creating great instability. Of immediate concern is the deteriorating economic situation. Credible economic forecasters virtually unanimously warned that leaving the European Union would be an enormous shock to the economy. 

The disagreements centred on the severity of the shock, and the long-term damage done. To that initial shock must be added the realisation that there was no plan made for a post-Brexit Britain. 

George Osborne has not secured the foundations of our economy and the market volatility reflects that missed opportunity. With turmoil continuing, and major employers already threatening redundancies, the immediate task is to stabilise markets and reassure investors and savers that financial institutions remain rock solid. 

The measures announced by Bank of England Governor Mark Carney early on Friday morning, and the later statement from the Chancellor, are to be welcomed and we have requested a briefing under Privy Council rules on the financial authorities’ contingency plans. It is also reassuring that George Osborne has now moved a threatened, post-Brexit austerity Budget until at least the Autumn. 

Nonetheless, with a recession now forecast, any attempt to push further austerity measures in response to the crisis would be an act of exceptional economic folly. The Chancellor’s own fiscal targets have long since been missed and simply redoubling the misery of spending cuts and tax rises will not bring them any closer to achievement. 

What is needed in a crisis like this is urgent government action to shore up investment, already falling before the vote. Shovel-ready projects should be brought forward, creating jobs and focused on beginning to rebuild those parts of the country currently most deprived – and where the vote to Leave was strongest. As a country we will get through this crisis, and we will do so when we no longer tolerate a situation in which too many of our people are excluded from even the chance of prosperity.

The referendum result

I have been in consultation with many economist, trade union and business leaders since the early hours of the morning when we learnt the result. I hope to give a speech this Friday going into further details of Labour’s economic response, but the result last Thursday came as a blow to many of us in the Labour Party.

All wings of the Labour movement fought hard, and two-thirds of our voters swung to Remain – the same as the SNP, and far more than the Tories, who split 60:40 for Leave. 

Labour will now be fighting to ensure whatever negotiations now take place, and whatever proposals the government chooses to bring forward, will maintain hard-won protections for working people in this country.

The new Labour leadership inherited the Labour In campaign last year. Obviously as with any campaign we will now have to reassess, but the hard work of the staff who worked on the campaign cannot be questioned. They did a fantastic job. 

Jeremy Corbyn also managed to help get out a larger number of our voters than the other main Westminster leaders across the country. 

But the sad truth is that we lost regardless. We need to learn lessons of the referendum and the General Election campaigns, and question whether the way we campaign as a party needs to be changed. 

It is clear that we cannot fight the next election using the same outdated practises and policies that were in place at the last two general elections, and the recent referendum. 

We cannot continue to do the same things in the same ways and get the same results. Those people who need a Labour government the most cannot afford it.


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015.