Cameron comes home to another Europe revolt

The PM's truce with his backbenchers is under increasing strain.

"He's sold us down the river". So said one party leader of David Cameron's new EU stance. Except the leader in question wasn't Ukip's Nigel Farage but Ed Miliband, speaking on ITV's Daybreak this morning. The Labour leader has annexed the language of betrayal from the Conservative right. He went on: "I'm going to be asking him in the House of Commons today what exactly has he agreed to, what protections has he got for Britain." Do his words, combined with the threat to vote against additional UK funds for the IMF, herald the long-awaited rebirth of Labour euroscepticism?

Whatever the answer turns out to be, it's not hard to see why Miliband is keen to maximise Cameron's political discomfort. The Prime Minister will return from Brussels today to a Conservative revolt over his decision to allow EU countries to use the European Commission and the European Court of Justice to enforce their new "fiscal compact". The Prime Minister's "veto", you'll recall, was supposed to prevent just such an outcome. The government continues to warn of legal action if Britain's interests are "threatened" by the new treaty (in other words, that the single market is undermined) but it's still a U-turn by any measure.

So, what explains this outbreak of pragmatism? In a phrase, Cameron has put economics before politics. The priority, he insists, is to resolve the eurozone crisis by ensuring the swift implementation of the new treaty. It's hard to see how the pact, committing EU members to German-style austerity, will aid European recovery but Cameron's intentions, at least, are good. As the PM commented yesterday:

The key point here for me is what is in our national interest, which is for them to get on and sort out the mess that is the euro. That's in our national interest.

But his backbenchers, many of whom are appalled that the UK is collaborating in the establishment of a fiscal union, don't accept Cameron's logic. The PM's willingness to allow the EU 25 (everyone except the UK and the Czech Republic) to use EU-wide institutions renders his veto meaningless, they argue. Here's Tory MP Douglas Carswell:

I don't see how the veto is really a veto if we allow the fiscal union members to form and to then find ourselves subject to the EU institutions being used to govern that.

With 20 MPs reportedly meeting in Edward Leigh's office last night, we can except plenty of dissenting voices when Cameron delivers his statement on the summit at 3:30pm in the Commons. But what the revolt currently lacks is a frontbencher, Iain Duncan Smith, say, or Owen Paterson, to tighten the noose on the Prime Minister. Until such a figure publicly intervenes, Cameron will probably be able to muddle through. But less than two months on from his celebrated "veto", the truce he struck with his MPs is under increasing strain.

George Eaton is political editor of the New Statesman.

Getty
Show Hide image

In your 30s? You missed out on £26,000 and you're not even protesting

The 1980s kids seem resigned to their fate - for now. 

Imagine you’re in your thirties, and you’re renting in a shared house, on roughly the same pay you earned five years ago. Now imagine you have a friend, also in their thirties. This friend owns their own home, gets pay rises every year and has a more generous pension to beat. In fact, they are twice as rich as you. 

When you try to talk about how worried you are about your financial situation, the friend shrugs and says: “I was in that situation too.”

Un-friend, right? But this is, in fact, reality. A study from the Institute for Fiscal Studies found that Brits in their early thirties have a median wealth of £27,000. But ten years ago, a thirty something had £53,000. In other words, that unbearable friend is just someone exactly the same as you, who is now in their forties. 

Not only do Brits born in the early 1980s have half the wealth they would have had if they were born in the 1970s, but they are the first generation to be in this position since World War II.  According to the IFS study, each cohort has got progressively richer. But then, just as the 1980s kids were reaching adulthood, a couple of things happened at once.

House prices raced ahead of wages. Employers made pensions less generous. And, at the crucial point that the 1980s kids were finding their feet in the jobs market, the recession struck. The 1980s kids didn’t manage to buy homes in time to take advantage of low mortgage rates. Instead, they are stuck paying increasing amounts of rent. 

If the wealth distribution between someone in their 30s and someone in their 40s is stark, this is only the starting point in intergenerational inequality. The IFS expects pensioners’ incomes to race ahead of workers in the coming decade. 

So why, given this unprecedented reversal in fortunes, are Brits in their early thirties not marching in the streets? Why are they not burning tyres outside the Treasury while shouting: “Give us out £26k back?” 

The obvious fact that no one is going to be protesting their granny’s good fortune aside, it seems one reason for the 1980s kids’ resignation is they are still in denial. One thirty something wrote to The Staggers that the idea of being able to buy a house had become too abstract to worry about. Instead:

“You just try and get through this month and then worry about next month, which is probably self-defeating, but I think it's quite tough to get in the mindset that you're going to put something by so maybe in 10 years you can buy a shoebox a two-hour train ride from where you actually want to be.”

Another reflected that “people keep saying ‘something will turn up’”.

The Staggers turned to our resident thirty something, Yo Zushi, for his thoughts. He agreed with the IFS analysis that the recession mattered:

"We were spoiled by an artificially inflated balloon of cheap credit and growing up was something you did… later. Then the crash came in 2007-2008, and it became something we couldn’t afford to do. 

I would have got round to becoming comfortably off, I tell myself, had I been given another ten years of amoral capitalist boom to do so. Many of those who were born in the early 1970s drifted along, took a nap and woke up in possession of a house, all mod cons and a decent-paying job. But we slightly younger Gen X-ers followed in their slipstream and somehow fell off the edge. Oh well. "

Will the inertia of the1980s kids last? Perhaps – but Zushi sees in the support for Jeremy Corbyn, a swell of feeling at last. “Our lack of access to the life we were promised in our teens has woken many of us up to why things suck. That’s a good thing. 

“And now we have Corbyn to help sort it all out. That’s not meant sarcastically – I really think he’ll do it.”