Cameron finally has a coherent Europe policy - but does his party want to listen?

The PM is inching towards a sceptical but engaged role in Europe. But his MPs won't be bought off.

After the umpteen crisis summits that have dominated Brussels-night life, last week's meeting of EU leaders was one of the dullest in recent memory. With the clock well past 3am, bleary-eyed leaders stumbled along to brief the no-less bleary-eyed Brussels press corps that, after ten hours of painstaking negotiating, a couple of words in the summit conclusions had been changed.

Three months after agreeing to create a single supervisor for the eurozone by the end of 2012, EU leaders confirmed that they had actually meant it and that the legal framework would be in place by the end of 2012.

But while leaders lined up to put their own national spin on the banking union agreement, David Cameron's Friday morning press briefing was significant, not just because of what he said, but also the way he said it.  In the course of a 20 minute briefing Cameron referred to "a new settlement" for both the eurozone and Britain about five times. Every time he spoke of the necessity of a banking union and deeper integration for the eurozone in the next breath he added that Britain would not be involved in any of it.

As a statement of fact, it is hard to disagree with him. Deeper integration of the eurozone will change Britain's relationship with the EU. Whether it is bank supervision by the ECB, a specific budget for the eurozone or a single Treasury for the single currency, all have as profound implications for the 10 countries outside the eurozone as for the eurozone-17. All, particularly Denmark and Sweden, the two other countries where euro-membership is squarely off the political agenda, will have big decisions to make, but a multi-speed Europe will surely become even clearer than it already is.

The first question is whether Cameron genuinely wants Britain to have second division membership and, if so, whether other countries will let him. Although Michael Gove and Iain Duncan-Smith lead the 'get-outer' faction in his cabinet, it seems clear that Cameron does not want Britain to leave the EU. In fact, he was at pains to repeat his commitment to Britain's EU membership, particularly to the single market, and to the country's 'euro-realism' on foreign policy.

The Cameron-doctrine on Europe seems to boil down to the following: pro-single market and in favour of ad hoc co-operation on foreign policy and blanket opposition to everything else - from the euro and JHA policy to social policy. However, while there is plenty to criticise from a left or liberal perspective, it is an ideologically coherent and thoroughly Tory approach.

At the same time, however, his government continues to add fuel to the perception that Cameron's EU policy is one of outright hostility. Indeed, after a week in which his government decided to opt out of over 130 legal acts on justice and home affairs policy and senior ministers mooted the possibility of a referendum on the EU within a year of the next election expected in 2015, the remark by Finland's Europe minister, Alex Stubb, that Britain was waving "bye, bye to Europe" is understandable. One of the Tories' main weaknesses on Europe is their lack of any significant allies and it is hard to see how Cameron can secure the opt-outs his party craves if he constantly provokes hostility from other European governments

That is why Cameron should tread carefully at November's specially convened EU budget summit. Angela Merkel has already thrown down the gauntlet, threatening to call off the summit - a veto to pre-empt a veto - if Cameron and William Hague continue to demand big reductions in EU spending. The entire EU budget only represents 1 per cent of GDP and the funds being argued about between countries are pretty small - around 0.1 per cent of GDP. But if it is already hard to see other countries agreeing to more British opt-outs, holding the rest of Europe to ransom over a tiny proportion of the EU budget would be completely counterproductive.

The other question is whether his party is prepared to listen. One of the mistakes Cameron made early on was to think that he could buy off his eurosceptics. Despite pulling his MEP delegation out of the centre-right European People's Party group and putting a "referendum lock" into UK law, many Tory activists are still convinced that their leader is a kool-aid slurping federalist and will accept nothing short of as many 'in/out' referendums as it takes to get the right result.

However, it is not as if either Labour or the Liberal Democrats have a coherent Europe policy around which to take advantage of Cameron's contortions. Since being ousted from power in 2010, Labour has taken a conscious decision not to be a hostage to fortune by laying down detailed policy platforms and Europe is no exception. Senior figures in the party are even considering whether to steal a march on the Tories by promising a referendum on Britain's EU membership in their next manifesto, a high risk strategy for no obvious political gain considering that the party won't convince anyone if it tries to 'out-sceptic' the Conservatives.

As for the Lib Dems, the only way that their pro-EU stance will be a vote-winner is if they use it in 2014 to despatch Nick Clegg to Brussels as Britain's next Commissioner, conveniently a year before facing the wrath of the electorate the following year.

Europe has been one of the most destructive forces in the Conservative party for over twenty years. After wrangling over the ERM and attitudes to European integration contributed to Thatcher's downfall, John Major's government was wrecked by civil war over the Maastricht Treaty and, since then, the Tories have repeatedly failed to articulate a policy position capable of getting grass-roots support and being put into practice. But now eurozone integration seems set to formally create a club within a club. Cameron acknowledges this and is inching towards a sceptical but engaged role in Europe. The question is whether other European leaders, and his party activists, are ready to listen.

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

David Cameron gives a press conference on the final day of an EU summit in Brussels on 19 October 2012. Photograph: Getty Images.
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An unmatched font of knowledge

Edinburgh’s global reputation as a knowledge economy is rooted in the performance and international outlook of its four universities.

As sociologist-turned US Senator Daniel Patrick Moynihan recognised when asked how to create a world-class city, a strong academic offering is pivotal to any forward-looking, ambitious city. “Build a university,” he said, “and wait 200 years.” He recognised the long-term return such an investment can deliver; how a renowned academic institution can help attract the world. However, in today’s increasingly globalised higher education sector, world-class universities no longer rely on the world coming to come to them – their outlook is increasingly international.

Boasting four world-class universities, Edinburgh not only attracts and retains students from around the world, but also increasingly exports its own distinctively Scottish brand of academic excellence. In fact, 53.9% of the city’s working age population is educated to degree level.

In the most recent QS World University Rankings, the University of Edinburgh was named as the 21st best university in the world, reflecting its reputation for research and teaching. It’s a fact reflected in the latest UK Research Exercise Framework (REF), conducted in 2014, which judged 96% of its academic departments to be producing world-leading research.

Innovation engine

Measured across the UK, annual Gross Value Added (GVA) by University of Edinburgh start-ups contributes more than £164m to the UK economy. In fact, of 262 companies to emerge from the university since the 1960s, 81% remain active today, employing more than 2,700 staff globally. That performance places the University of Edinburgh ahead of institutions such as MIT in terms of the number of start-ups it generates; an innovation hothouse that underlines why one in four graduates remain in Edinburgh and why blue chip brands such as Amazon, IBM and Microsoft all have R&D facilities in the city.

One such spin out making its mark is PureLiFi, founded by Professor Harald Haas to commercialise his groundbreaking research on data transmission using the visible light spectrum. With data transfer speeds 10,000 times faster than radio waves, LiFi not only enables bandwidths of 1 Gigabit/sec but is also far more secure.

Edinburgh’s universities play a pivotal role in the local economy. Through its core operations, knowledge transfer activities and world-class research the University generated £4.9bn in GVA and 44,500 jobs globally, when accounting for international alumni.

With £1.4bn earmarked for estate development over the next 10 years, the University of Edinburgh remains the city’s largest property developer. Its extensive programme of investment includes the soon-to-open Higgs Centre for Innovation. A partnership with the UK Astronomy Technology Centre, the new centre will open next year and will supply business incubation support for potential big data and space technology applications, enabling start-ups to realise the commercial potential of applied research in subjects such as particle physics.

It’s a story of innovation that is mirrored across Edinburgh’s academic landscape. Each university has carved its own areas of academic excellence and research expertise, such as the University of Edinburgh’s renowned School of Informatics, ranked among the world’s elite institutions for Computer Science. 

The future of energy

Research conducted into the economic impact of Heriot-Watt University demonstrated that it generates £278m in annual GVA for the Scottish economy and directly supports more than 6,000 jobs.

Set in 380-acres of picturesque parkland, Heriot-Watt University incorporates the Edinburgh Research Park, the first science park of its kind in the UK and now home to more than 40 companies.

Consistently ranked in the top 25% of UK universities, Heriot-Watt University enjoys an increasingly international reputation underpinned by a strong track record in research. 82% of the institution’s research is considered world-class (REF) – a fact reflected in a record breaking year for the university, attracting £40.6m in research funding in 2015. With an expanding campus in Dubai and last year’s opening of a £35m campus in Malaysia, Heriot-Watt is now among the UK’s top five universities in terms of international presence and numbers of international students.

"In 2015, Heriot-Watt University was ranked 34th overall in the QS ‘Top 50 under 50’ world rankings." 

Its established strengths in industry-related research will be further boosted with the imminent opening of the £20m Lyell Centre. It will become the Scottish headquarters of the British Geological Survey, and research will focus on global issues such as energy supply, environmental impact and climate change. As well as providing laboratory facilities, the new centre will feature a 50,000 litre climate change research aquarium, the UK Natural Environment Research Council Centre for Doctoral Training (CDT) in Oil and Gas, and the Shell Centre for Exploration Geoscience.

International appeal

An increasingly global outlook, supported by a bold international strategy, is helping to drive Edinburgh Napier University’s growth. The university now has more than 4,500 students studying its overseas programmes, through partnerships with institutions in Hong Kong, Singapore, China, Sri Lanka and India.

Edinburgh Napier has been present in Hong Kong for more than 20 years and its impact grows year-on-year. Already the UK’s largest higher education provider in the territory, more than 1,500 students graduated in 2015 alone.

In terms of world-leading research, Edinburgh Napier continues to make its mark, with the REF judging 54% of its research to be either world-class or internationally excellent in 2014. The assessment singled out particular strengths in Earth Systems and Environmental Sciences, where it was rated the top UK modern university for research impact. Taking into account research, knowledge exchange, as well as student and staff spending, Edinburgh Napier University generates in excess of £201.9m GVA and supports 2,897 jobs in the city economy.

On the south-east side of Edinburgh, Queen Margaret University is Scotland’s first university to have an on-campus Business Gateway, highlighting the emphasis placed on business creation and innovation.

QMU moved up 49 places overall in the 2014 REF, taking it to 80th place in The Times’ rankings for research excellence in the UK. The Framework scored 58% of Queen Margaret’s research as either world-leading or internationally excellent, especially in relation to Speech and Language Sciences, where the University is ranked 2nd in the UK.

In terms of its international appeal, one in five of Queen Margaret’s students now comes from outside the EU, and it is also expanding its overseas programme offer, which already sees courses delivered in Greece, India, Nepal, Saudi Arabia and Singapore.

With 820 years of collective academic excellence to export to the world, Edinburgh enjoys a truly privileged position in the evolving story of academic globalisation and the commercialisation of world-class research and innovation. If he were still around today, Senator Moynihan would no doubt agree – a world-class city indeed.

For further information www.investinedinburgh.com