Labour’s European dilemma

Labour should make common cause with its sister parties and oppose EU austerity.

2011 was dominated by the eurozone debt crisis and the bad news is the same will be true in 2012, well, at least for the first six months of it. The debt crisis is, for wildly different reasons, a major headache for the three major UK parties.

The Conservatives are still hugging themselves with delight at David Cameron's 'obstinate child' act at the EU summit. They were particularly pleased when ministers and Treasury officials traded insults with the French counterparts about the state of the other's economy - for a Tory there is no higher calling than picking a diplomatic fight with the French. The Tories also enjoyed a decent poll bounce following the summit.

But their pleasure will be short-lived. Those who are happiest with Cameron's non-veto are the ones who see it as the first step towards a referendum on Britain's EU membership. Meanwhile, by seeing the summit solely as an opportunity to shore up back-bench support and protect Tory donors in the City, Cameron has shut himself out of the negotiations to resolve the eurozone crisis on which the stability of the UK economy depends. In the meantime, it is almost certain that, one way or another, he will increase Britain's IMF contributions to help foot the bill.

The Lib Dems once again demonstrated their unique capacity in government to pick the least popular position. Their support for the Angela Merkel inspired 'fiscal compact' treaty and fury with Cameron for isolating Britain within the EU follows the precedent of supporting massive spending cuts and the tripling of tuition fees. It is a remarkable change for a party famous in opposition for jumping on ever populist band-waggon that moved.

But Labour, too, has a big strategic decision. Amid the triumphal mood of the House of Commons debate following the summit, Ed Miliband actually had Cameron on the run until cornered by the question: 'what would you have done'. Unfortunately, Miliband had no answer.

The truth is that David Cameron was right to oppose the fiscal treaty. Indeed, most media coverage of the December summit overlooked the fact that the proposed 'fiscal compact' treaty is actually very bad news indeed. While the left should not be opposed to the concept of putting a national debt ceiling into law the automatic sanctions, involving fines of up to 0.2 per cent of GDP, are excessive and pro-cyclical. Fining a country in economic difficulty billions of euros is akin to cutting off a one-legged man's working limb. But it is the limit of 0.5 per cent on structural deficits that is truly daft. Most EU countries can't hope to meet this target within the coming years, only the likes of Germany, Finland and Netherlands, who have a large current account surplus, will be able to consistently meet it. To put the 0.5 per cent figure in context, Britain's structural deficit is currently around 6.5 per cent. Even with George Osborne's spending cuts the OBR's optimistic forecast is that this will only fall to 4 per cent by 2015.

More importantly, this treaty will make it virtually impossible for EU countries to pursue Keynesian-style expansion in the future. If it ever comes into force, Europe will be locked into a decade of austerity and economic stagnation. At a time when most economists are projecting a tough decade of recession and low growth, the treaty is plain daft. Had Ed Miliband been at the summit there is no question that he should have opposed it.

With the Coalition bickering between the Conservatives and the rest of the EU, and the Lib Dems with their Tory colleagues, Labour has a difficult path to tread. Should it join the Tories in some facile, but populist, Brussels-bashing?

For those who think Labour is unwaveringly pro-EU, it's worth remembering that euroscepticism has existed in Labour far longer than the Conservatives. Labour's infamous 1983 election manifesto included a pledge to withdraw from the EEC. Only in the late 1980s under Kinnock's leadership did party policy became pro-European as, crucially, did the trade unions, realising that the EU could be an effectively means to enshrine social and employment protection in European law.

But although there are prominent eurosceptics on the Labour backbenches and in the shadow cabinet, Miliband should realise that there is no electoral advantage to Labour by adopting a Tory-style euroscepticism. This sentiment has been built into the Tory party's DNA ever since the Maastricht Treaty and Labour couldn't credibly outflank them. Besides, while the British public may be sceptical about the EU, they have never elected a party whose platform was to estrange Britain from the rest of Europe.

Instead, Labour should make common cause with its sister-parties, particularly those in France and Germany who face critically important general elections this year. Both Francois Hollande and Peer Steinbruck have opposed the new treaty, rightly arguing that it enshrines austerity economics in a recession and, consequently, won't work.

Indeed, although Labour's relationship with its continental partners has often been marred by mutual suspicion, the reality is that they are all, by and large, singing from the same policy hymn sheet. Rigorous financial regulation, which Britons want but the Tories refuse to countenance, is being adopted at EU level. Laws on short-selling, hedge funds, and bank bonuses have all been adopted at European level with Labour's support but in the teeth of Tory opposition.

Now, more than before, socialist parties need each other. In the past two years left-wing parties with a strong history in government have been soundly beaten in the UK, Spain, Sweden, Portugal and the Netherlands to name but four, with Helle Thorning-Schmidt's victory in Denmark the only ray of light. Defeat for Hollande and Steinbruck this year would point ominously towards a Labour defeat at the next election.

Labour needs to sketch out a credible alternative on Europe if they are to effectively attack Cameron's isolationism. Both the Tories and Lib Dems will lose what influence they once had in Brussels. Rather than join them in carping from the sidelines and wielding vetos and threats that do not mean or stop anything, Labour should fill the policy vacuum as the only party with any meaningful answers on Europe.

Ben Fox is chairman of GMB Brussels and political adviser to the Socialist vice-president of economic and monetary affairs.

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"There's nowhere to turn": What it's like to be gay and homeless

Many LGBTQ homeless people cannot ask their families for help. 

Ascania is a 41 mother with a 24 year-old son, who came to the UK from Jamaica in 2002. “I was raped at gunpoint in the area I lived in Jamaica," she says. "They’d found out in the community that I’m a lesbian. They hit the back of my head with a gun- sometimes it is still painful. I had to move from that area, then I went to another part of the island. I lived there for 18 months. People in these communities start to watch you – to see if there are men coming to see you. They begin to be suspicious. Luckily I had a chance to come to the UK before something else happened."

A friend, who was also gay, paid for a ticket for her to reach the UK. She started a relationship, and moved in with her girlfriend, but the girlfriend turned abusive. "It was a nightmare," she remembers. "It ended then I started to sofa surf. Sometimes I would go into pubs meet different girls, go back with them, and sleep over just so I had somewhere to spend the night."

Eventually, Ascania received help from St Mungo's, a homelessness charity, after the LGBT charity Stonewall put her in touch. The charity helped her get food from a food bank, and find somewhere to stay. 

While all homeless people can struggle with physical and mental challenges, lesbian, gay, bisexual, and transgender people face extra stigma, discrimination, and rejection by their families.

“That’s why I think LGBTQ projects are important," says Ascania. "From being on the gay scene, I meet all these people and they don’t know about the support available. They’re out there having a really rough time. They don’t know where to turn."

She feels that in shared accommodation, people like herself can be judged for their friends. 

Homeless charities point out that transgender people are particularly at physical risk due to a lack of acceptance and are sometimes turned away from shelters.

Melissa is a trans women in her early 40s. She is now living in transgender accommodation in London provided by the charity St Mungo’s and says she is successfully engaged with drug and alcohol services and rebuilding relationships with her family.

Before beginning her transition she was married with two teenage children and had been in trouble with the police. 

She says the stress of denying her true self led to self-destructive behaviour.

She said: “I was sleeping rough, in graveyards and stairwells. In 2012 I went to prison for nine months. My probation officer put me in touch with St Mungo’s and now I have a really nice place and I hope to become a project worker with the charity. I can see a path forward.”

According to Homeless Link, a national membership charity for organisations working with people who become homeless in England, the causes of homelessness include poor and unsuitable housing, insecurity in the private rented sector, transitioning/leaving accommodation or institutions such as prison, and loss of employment. These circumstances are often coupled with mental health issues, experience of trauma, relationship breakdown, and fleeing domestic violence or abuse.

Awareness of the specific needs of LGBT homeless people is starting to enter mainstream politics. Last month, LGBT Labour passed a motion at its AGM to affiliate to the Labour Campaign to End Homelessness (LCEH). The two organisations will hold a joint event at Labour's annual conference in the autumn.

Sam Stopp, a Labour councillor in Wembley, is chair of LCEH. He said party activists launched the campaign two years ago, because they wanted to do more than talk about the problem. He said: “LGBT homelessness has some specific aspects. If your parents do not support you and you are thrown out of your home that may require a different approach to help people rebuild their lives. There’s not just an economic reason but your sexuality has closed them off.”

Stopp hopes that by aligning Labour activists with homelessness charities, his organisation will be able to provide practical support to people who need it. 

Chris Wills from LGBT Labour’s National Committee, and chair of LGBT Labour North West, said: “The homelessness crisis is worsening. I live in Manchester, where every day I see more and more people sleeping rough – and that’s just the ones we know about, let alone the “hidden homeless”, who are reliant on hostels or going from one friend’s couch to another’s floor night after night.

“This year marks fifty years since the decriminalisation of homosexuality in England and Wales, and huge advances were made for LGBT equality under Labour between 1997 and 2010. Society as a whole has become more tolerant. Yet even now, coming out as LGBT to your family can still often result in you being kicked out onto the streets, or forced to flee the family home due to verbal and physical abuse.”