Cameron's EU referendum may never happen

It is odd to speak of an EU referendum as inevitable when few believe the Conservatives will win a majority at the next election.

Yet again this morning, David Cameron was interviewed about a speech on the EU he still hasn't given. Asked on the Today programme whether the over-hyped address had been completed, Cameron said it was "finished and ready to go" (subsequently amending this to "largely finished").

Once again, he said that he would seek to reach a "new settlement" with the EU before seeking the "consent" of the British people for the changes, a clear promise of a referendum. In his speech, which is now due to be delivered on 23 January (having been pushed back from 22 January in order to avoid clashing with celebrations to mark the 50th anniversary of the Élysée Treaty between France and Germany), Cameron will say that after the next election, a Conservative government would seek to repatriate significant powers from the EU before offering the voters a choice between the new terms and withdrawal.

As such, a referendum is now viewed by most as inevitable. Yet this pledge is dependent on an outcome that increasingly few believe is likely: a Conservative majority at the next election. A reformation of the coalition would likely scupper any plans Cameron has to bring back major powers from Brussels. In addition, it is unclear how Cameron will respond if he proves unable to secure the changes he wishes to see. This morning, he simply told John Humphrys: "I'm confident we will get the changes that we want, we'll have a new settlement and then we'll put that to the British people." Given the obstacles to a referendum, it is surprising how many now speak as if it is a certainty.

Neither Labour nor the Liberal Democrats will immediately match Cameron's pledge to hold an EU referendum, both arguing that it makes no sense to discuss a public vote until the eurozone crisis has been resolved. However, it is also true that they are unlikely to allow Cameron to go into the 2015 election as the only party leader willing to offer the public a say on Europe. The Lib Dems have previously supported an in/out referendum, while senior Labour figures, including Jon Cruddas and Jim Murphy, both argue that a vote should be held at some point in the future. In all probability, then, an EU referendum is coming. But no one should assume it will be Cameron who holds it.

David Cameron speaks during a press conference at the EU headquarters on December 14, 2012 in Brussels. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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John Major's double warning for Theresa May

The former Tory Prime Minister broke his silence with a very loud rebuke. 

A month after the Prime Minister stood in Chatham House to set out plans for free trading, independent Britain, her predecessor John Major took the floor to puncture what he called "cheap rhetoric".

Standing to attention like a weather forecaster, the former Tory Prime Minister warned of political gales ahead that could break up the union, rattle Brexit negotiations and rot the bonds of trust between politicians and the public even further.

Major said that as he had been on the losing side of the referendum, he had kept silent since June:

“This evening I don't wish to argue that the European Union is perfect, plainly it isn't. Nor do I deny the economy has been more tranquil than expected since the decision to leave was taken. 

“But I do observe that we haven't yet left the European Union. And I watch with growing concern  that the British people have been led to expect a future that seems to be unreal and over-optimistic.”

A seasoned EU negotiator himself, he warned that achieving a trade deal within two years after triggering Article 50 was highly unlikely. Meanwhile, in foreign policy, a UK that abandoned the EU would have to become more dependent on an unpalatable Trumpian United States.

Like Tony Blair, another previous Prime Minister turned Brexit commentator, Major reminded the current occupant of No.10 that 48 per cent of the country voted Remain, and that opinion might “evolve” as the reality of Brexit became clear.

Unlike Blair, he did not call for a second referendum, stressing instead the role of Parliament. But neither did he rule it out.

That was the first warning. 

But it may be Major's second warning that turns out to be the most prescient. Major praised Theresa May's social policy, which he likened to his dream of a “classless society”. He focused his ire instead on those Brexiteers whose promises “are inflated beyond any reasonable expectation of delivery”. 

The Prime Minister understood this, he claimed, but at some point in the Brexit negotiations she will have to confront those who wish for total disengagement from Europe.

“Although today they be allies of the Prime Minister, the risk is tomorrow they may not,” he warned.

For these Brexiteers, the outcome of the Article 50 negotiations did not matter, he suggested, because they were already ideologically committed to an uncompromising version of free trade:

“Some of the most committed Brexit supporters wish to have a clean break and trade only under World Trade Organisation rules. This would include tariffs on goods with nothing to help services. This would not be a panacea for the UK  - it would be the worst possible outcome. 

“But to those who wish to see us go back to a deregulated low cost enterprise economy, it is an attractive option, and wholly consistent with their philosophy.”

There was, he argued, a choice to be made about the foundations of the economic model: “We cannot move to a radical enterprise economy without moving away from a welfare state. 

“Such a direction of policy, once understood by the public, would never command support.”

Major's view of Brexit seems to be a slow-motion car crash, but one where zealous free marketeers like Daniel Hannan are screaming “faster, faster”, on speaker phone. At the end of the day, it is the mainstream Tory party that will bear the brunt of the collision. 

Asked at the end of his speech whether he, like Margaret Thatcher during his premiership, was being a backseat driver, he cracked a smile. 

“I would have been very happy for Margaret to make one speech every eight months,” he said. As for today? No doubt Theresa May will be pleased to hear he is planning another speech on Scotland soon. 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.