The European Parliament's hand-out to the far-right

The decision to award money to anti-semitic parties shows where the EU is going wrong.

The fight against anti-semitism has just got a whole lot more difficult. The Conservatives, Socialists and Liberals in the European Parliament have just decided to extend a massive subsidy to promote political anti-semitism. €289,266 of taxpayers' money will now be given to openly anti-Jewish parties like Hungary's Jobbik, whose MEPs tried to take their seats in Strasbourg wearing the uniform of the anti-Jewish Hungarian Guard. Krisztina Moravi headed the Jobbik list in the last European Parliament elections and declared she "would be glad if the so-called Hungarian Jews went back to playing with their tiny circumcised dicks instead of vilifying me."

Another beneficiary is the British National Party, whose leader and senior MEP, Nick Griffin, has denied the holocaust and whose only lengthy publication, Who are the Mindbenders?, accused Jewish journalists of forming a secret lobby to control the media. Griffin has moved on to plough the more politically profitable furrows of Islamophobia and anti-immigrant xenophobia but across the European far-right the threnody of a disappeared national identity lost of Jewish influence remains strong.

Predictably, le grandpère of anti-semitic parliamentary politics, Jean Marie Le Pen, who is still an MEP at the age of 83 after decades of anti-Jewish sneers, will also benefit from the handout. The European Parliament grant has been given to the European Alliance of National Movements, (EANM) a grouping of 13 far-right parties. Only three of them have MEPs - eight in total from Britain's BNP, France's Front National, and Hungary's Jobbik.

The grant is to the EANM, even though European Parliament rules stipulate that any political group in Strasbourg should have at least 25 members and have MEPs from at least seven member states. The hurdle is not that high and Britain's Conservatives were able to forge their own alliance with fellow Eurosceptic parties after the 2009 Strasbourg election. But under no interpretation of the European Parliament's rules is there any justification for giving thousands of Euros to extremist anti-democratic parties that do not even have the support to win the odd seat in the Strasbourg assembly under its lax proportional representation electoral system.

Instead this is a fix within a fix. Once elected, MEPs operate an Ottoman system of divvying up the spoils of office between themselves. In the closed corridors of Brussels and Strasbourg, the leaders of the Socialists, Conservatives, Liberal-Democrats, Greens, Communists and Christian Democrats decide who will be president of the European Parliament and who will chair all the key committees. The votes are pure formalities as the deals are decided by a handful of top MEPs without any reference to their colleagues, to their parties, still less to voters.

It is the depressingly undemocratic and unaccountable nature of the European Parliament that has led more and more pro-Europeans like Germany's former Foreign Minister, Joschka Fischer, France ex-president, Valéry Giscard D'Estaing and myself, to call for reform of the European Parliament so that is has some connection to European citizens.

The scandal of handing out cash to Europe's anti-semites and to parties without even an MEP to their name might encourage governments, who ultimately vote this money, to think harder about overdue reform of the European Parliament. Ever since David Cameron quit the mainstream centre-right grouping in the European Parliament to build links with Latvian defenders of the Waffen SS or the clericalist, nationalist Law and Justice Party in Poland, the Conservatives have had an unhappy relationship with the European Parliament. Their best-known MEP, Edward MacMillan Scott defected to the Liberal Democratic group in 2009 and last week, the Tories' best-known Midlands MEP, Roger Helmer, defected to UKIP.

But Labour and the Lib Dems are scarcely in better shape. UKIP and BNP MEPs outnumber Labour MEPs as the European Parliament allows the election of extreme or fringe candidates who have little real purchase in national politics in terms of parliamentary or local elections. The three decades of the European Parliament's existence has seen ever-decreasing participation in its elections. National parliaments feel utterly excluded from oversight of EU decision-making. The decision to award money to anti-semitic parties should be the occasion for a major re-think about the role and purpose of the European Parliament.

Denis MacShane is MP for Rotherham and a former Europe Minister

Denis MacShane is MP for Rotherham and was a minister at Foreign and Commonwealth Office
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By refusing to stand down, Jeremy Corbyn has betrayed the British working classes

The most successful Labour politicians of the last decades brought to politics not only a burning desire to improve the lot of the working classes but also an understanding of how free market economies work.

Jeremy Corbyn has defended his refusal to resign the leadership of the Labour Party on the grounds that to do so would be betraying all his supporters in the country at large. But by staying on as leader of the party and hence dooming it to heavy defeat in the next general election he would be betraying the interests of the working classes this country. More years of Tory rule means more years of austerity, further cuts in public services, and perpetuation of the gross inequality of incomes. The former Chief Secretary to the Treasury, Seema Malhotra, made the same point when she told Newsnight that “We have an unelectable leader, and if we lose elections then the price of our failure is paid by the working people of this country and their families who do not have a government to stand up for them.”

Of course, in different ways, many leading figures in the Labour movement, particularly in the trade unions, have betrayed the interests of the working classes for several decades. For example, in contrast with their union counterparts in the Scandinavian countries who pressurised governments to help move workers out of declining industries into expanding sectors of the economy, many British trade union leaders adopted the opposite policy. More generally, the trade unions have played a big part in the election of Labour party leaders, like Corbyn, who were unlikely to win a parliamentary election, thereby perpetuating the rule of Tory governments dedicated to promoting the interests of the richer sections of society.

And worse still, even in opposition Corbyn failed to protect the interests of the working classes. He did this by his abysmal failure to understand the significance of Tory economic policies. For example, when the Chancellor of the Exchequer had finished presenting the last budget, in which taxes were reduced for the rich at the expense of public services that benefit everybody, especially the poor, the best John McConnell could do – presumably in agreement with Corbyn – was to stand up and mock the Chancellor for having failed to fulfill his party’s old promise to balance the budget by this year! Obviously neither he nor Corbyn understood that had the government done so the effects on working class standards of living would have been even worse. Neither of them seems to have learnt that the object of fiscal policy is to balance the economy, not the budget.

Instead, they have gone along with Tory myth about the importance of not leaving future generations with the burden of debt. They have never asked “To whom would future generations owe this debt?” To their dead ancestors? To Martians? When Cameron and his accomplices banged on about how important it was to cut public expenditures because the average household in Britain owed about £3,000, they never pointed out that this meant that the average household in Britain was a creditor to the tune of about the same amount (after allowing for net overseas lending). Instead they went along with all this balanced budget nonsense. They did not understand that balancing the budget was just the excuse needed to justify the prime objective of the Tory Party, namely to reduce public expenditures in order to be able to reduce taxes on the rich. For Corbyn and his allies to go along with an overriding objective of balancing the budget is breathtaking economic illiteracy. And the working classes have paid the price.

One left-wing member of the panel on Question Time last week complained that the interests of the working classes were ignored by “the elite”. But it is members of the elite who have been most successful in promoting the interests of the working classes. The most successful pro-working class governments since the war have all been led mainly by politicians who would be castigated for being part of the elite, such as Clement Atlee, Harold Wilson, Tony Crosland, Barbara Castle, Richard Crossman, Roy Jenkins, Denis Healey, Tony Blair, and many others too numerous to list. They brought to politics not only a burning desire to improve the lot of the working classes (from which some of them, like me, had emerged) and reduce inequality in society but also an understanding of how free market economies work and how to deal with its deficiencies. This happens to be more effective than ignorant rhetoric that can only stroke the egos and satisfy the vanity of demagogues

People of stature like those I have singled out above seem to be much more rare in politics these days. But there is surely no need to go to other extreme and persist with leaders like Jeremy Corbyn, a certain election loser, however pure his motives and principled his ambitions.

Wilfred Beckerman is an Emeritus Fellow of Balliol College, Oxford, and was, for several years in the 1970s, the economics correspondent for the New Statesman