EU renegotiation: chasing windmills in Birmingham

There is no hope that a renegotiation would be anything but a step towards exit from the EU.

Do you see over yonder, friend Sancho, thirty or forty hulking giants? I intend to do battle with them and slay them.

Perhaps Cameron will not employ the very words used by Miguel de Cervantes (some on the nationalist right of his party will probably take issue with the quotation of foreign writers) but, if recent statements are anything to go by, that will be the sentiment expressed when talking about Europe. The PM is picking a whole host of fights with the EU, in most cases against everyone’s advice, just to satisfy his Europhobic backbenchers.

From the EU budget to justice and home affairs, from fiscal union to banking union the debate is framed in terms of threats rather than opportunities. In fact, the only time the word opportunity is utilised is when talking about using the process of reform in the EU as an opportunity to remove Britain from more and more chapters of European cooperation.

That’s where the illusion starts. This nebulous concept of renegotiating Britain’s membership of the EU is the biggest red herring in the North Sea. It is used to appease those at the right and extreme right who want full withdrawal from the EU. But it is doomed to fail on all counts.

On the one hand no “renegotiation” will ever be enough for those that want to see Britain abandon the EU. The more meat the PM throws at them the more he wets their blood-thirsty appetite. In fact, in this futile effort to appease them, the PM has been compromising the national interest. The December 2011 “veto” locked the UK out of the room where important decisions about the EU’s future are taken. And the mooted opt out for justice and home affairs measures has been criticised by the police and all those involved in the nation’s security as a massive mistake that will make the fight against terrorism, illegal immigration and organised crime even harder.

On the other hand, such “renegotiation” will not be accepted by Britain’s European partners. The Polish Foreign Minister, a Conservative himself, from a country which has traditionally been considered the UK’s ally, came all the way to Oxford to say as much (£). He expressed an exasperation echoed by most EU member states with the UK’s attitude when in Brussels. The perception among our EU partners is that there seems to be more interest in grandstanding for domestic political consumption than constructively engaging to address the challenges the EU as a whole is facing. Germany, which has always been keen to keep Britain at the core of the EU, is now changing tune, with MPs from both the ruling centre right CDU and the centre-left SPD currently in opposition, saying that there is very little will to accommodate Britain’s demands for a “renegotiation”, exactly because of the spoiled child attitude displayed by the PM at European Council meetings since he came in power.

But good will aside, Britain’s hand if such a renegotiation is ever to take place will be weakened by its relative size and trading relationship with the rest of the EU. Whereas about 50 per cent of our trade is done with our EU partners, only 10 per cent of their trade is done with Britain. You do the maths.

Furthermore, why would other EU member states allow Britain to excuse itself from Single Market rules but continue ripping the benefits of Single Market membership? What is to stop others from making similar requests for exemption from areas the UK considers important? Even if the political will was there, even if Britain had the diplomatic and commercial capital to invest in such renegotiation, any concessions would imply the start of the Single Market’s unravelling, which would cost British business and households dearly.

Not to mention that it sends the wrong message; the more the UK isolates itself, the more it tries to remove itself from areas of European co-operation, the less likely it is to be able to gain support to advance areas that are of interest to us.

So instead of picking pointless battles with imaginary enemies, instead of creating impossible to fulfil expectations, the PM and his Ministers should use the EU’s decision-making structures to build alliances with Britain’s EU partners. Rather than threatening opt-outs and vetoes, the best way for Britain to address the areas of Single Market law it wants renewed is to engage constructively with others in the Council of Minister in reviewing EU laws, improving them when necessary and removing them if they have achieved their objective or have reached their sell-by date.

Don Quixote was told by his humble servant Sancho, "Now look, your grace, what you see over there aren't giants, but windmills, and what seems to be arms are just their sails, that go around in the wind and turn the millstone." The hope is that someone will awake the PM and his Europhobic backbenchers to exactly the same fact.

Some red herring. Photograph: misocrazy from New York, NY (CC-BY)

Petros Fassoulas is the chairman of European Movement UK

Getty
Show Hide image

Leader: Theresa May and the resurgence of the state

More than any of her recent predecessors, the Prime Minister seems willing to challenge the economic and political orthodoxies of the past 35 years.

Theresa May entered office in more tumultuous circumstances than any other prime minister since 1945. The UK’s vote to leave the European Union was a remarkable rebuke to the political and business establishment and an outcome for which few had prepared. Mrs May recognised that the result was more than a revolt against Brussels. It reflected a deeper alienation and discontent. Britain’s inequalities of wealth and opportunity, its regional imbalances and its distrusted political class all contributed to the Remain campaign’s ­defeat. As she said in her speech in Birmingham on 11 July: “Make no mistake, the referendum was a vote to leave the European Union, but it was also a vote for serious change.”

When the financial crisis struck in 2007-2008, David Cameron, then leader of the opposition, was caught out. His optimistic, liberal Conservative vision, predicated on permanent economic growth, was ill-suited to recession and his embrace of austerity tainted his “modernising” project. From that moment, the purpose of his premiership was never clear. At times, austerity was presented as an act of pragmatic bookkeeping; at others, as a quest to shrink the state permanently.

By contrast, although Mrs May cautiously supported Remain, the Leave vote reinforced, rather than contradicted, her world-view. As long ago as March 2013, in the speech that signalled her leadership ambitions, she spoke of the need to confront “vested interests in the private sector” and embrace “a more strategic role” for the state. Mrs May has long insisted on the need to limit free movement of people within the ­European Union, and anticipated the causes of the Leave vote. The referendum result made the national reckoning that she had desired inevitable.

More than any of her recent predecessors, the Prime Minister seems willing to challenge the economic and political orthodoxies of the past 35 years. She has promised worker representation on company boards, binding shareholder votes on executive pay, improved corporate governance and stricter controls on foreign takeovers.

The shadow chancellor, John McDonnell, has set the ­Labour Party on a similar course, stating in his conference speech that the “winds of globalisation” are “blowing against the belief in the free market and in favour of intervention”. He pointedly criticised governments which did not try to save their domestic steel industries as China dumped cheap steel on to global markets.

We welcome this new mood in politics. As John Gray wrote in our “New Times” special issue last week, by reasserting the role of the state as the final guarantor of social ­cohesion, Mrs May “has broken with the neoliberal model that has ruled British politics since the 1980s”.

The Prime Minister has avoided the hyperactive style of many new leaders, but she has deviated from David Cameron’s agenda in several crucial respects. The target of a national Budget surplus by 2020 was rightly jettisoned (although Mrs May has emphasised her commitment to “living within our means”). Chancellor Philip Hammond’s Autumn Statement on 23 November will be the first test of the government’s ­fiscal boldness. Historically low borrowing costs have strengthened the pre-existing case for infrastructure investment to support growth and spread prosperity.

The greatest political ­challenge facing Mrs May is to manage the divisions within her party. She and her government must maintain adequate access to the European single market, while also gaining meaningful control of immigration. Her statist economic leanings are already being resisted by the free-market fundamentalists on her benches. Like all prime ministers, Mrs May must balance the desire for clarity with the need for unity.

“Brexit means Brexit,” she has repeatedly stated, underlining her commitment to end the UK’s 43-year European
affair. If Mrs May is to be a successful and even transformative prime minister, she must also prove that “serious change” means serious change and a determination to create a society that does not only benefit the fortunate few. 

This article first appeared in the 29 September 2016 issue of the New Statesman, May’s new Tories