Cameron's EU strategy puts party interests before the national interest

A pledge to hold an in/out referendum will appease Tory MPs, but it will not deliver for Britain.

This week the curtain rises on the new Westminster year - and already speculation about the Prime Minister’s much delayed speech on Europe has begun. But the fact 2013 is earmarked to begin with such a speech reveals more about the Prime Minister’s weakness at home than his agenda abroad.

Both the timing and content of this speech have little to do with policy and everything to do with politics. The truth is that David Cameron didn’t give the speech in 2012 because he didn't know what to say. To deliver for the country the speech would need to be about how Britain plans to lead the reshaping of post-crisis Europe. Yet for the speech to deliver for his own party, only one line will really matter... and that is whether or not David Cameron commits to an in/out referendum.

It is this tension that has left the Tory leader stranded speechless for the past year between the party interest and the national interest. If, for reasons of his party's divisions and weakness in the polls, he succumbs to calls in the coming days for an in/out referendum, he will have to answer questions not just about his political judgement, but also about his political priorities. Of course the Prime Minister may hope that such an in/out referendum announcement can help convince UKIP voters to return to the Conservative party. But instead he should be asking himself: is Europe really as much of a priority in the public's mind for this new year as it is for him or his party?

And even if he thinks it is: is an in/out referendum really the biggest issue we have to face in Europe today? My answer to both would be no. Why?

First, British business leaders are already nervous, but this could turn to real fear if an under pressure Prime Minister now announces an in/out referendum and the perception takes hold that many Conservative MPs - including some cabinet ministers - are simply awaiting exit. If the government disagrees with this they should publish, along with David Cameron's speech, all the advice to ministers from BIS and the Treasury about the impact of such an announcement on UK business and inward investment prospects.

Announcing an in/out referendum halfway through this parliament to take place more than halfway through the next, given the Conservatives' hostility towards Europe, could risk up to seven years of economic uncertainty, threatening vital investment and effectively playing Roulette with the country's economic future. Indeed, even his own Foreign Secretary William Hague has told the House of Commons that "It would create additional economic uncertainty in this country at a difficult economic time.” The Prime Minster himself has made much in recent days of his ambition to secure an EU-US trade deal during the UK's G8 Presidency. It's a laudable economic goal, but he seems less keen to recognise that to achieve it relies entirely on British membership of Europe. A Britain outside Europe would be unable to even aspire to such a deal.

Second, focusing on an in/out referendum now actually risks the UK missing the best chance in a generation to reform Europe so that it better serves our interests and meets our expectations. Simply presenting a shopping list of repatriations - backed by the threat of exit – will not deliver for Britain and will undermine our ability to shape and lead the broader project of EU reform.

If he disagrees, the Prime Minister should publish alongside his speech the advice to FCO ministers about what impact this approach would have on our influence in Europe at this crucial time. Labour takes a different view. We are clear that any future decision on a referendum should be based on changes in Europe, not movements in the polls.

While the Prime Minister is right to recognise that Europe, and our position within it, is changing, he is wrong to imply that these changes inevitably threaten our interests. It is still unclear how these changes will affect Britain’s relationship with the EU, or indeed the nature of our membership.

That is why the priority must be for Britain to use the coming months and years to shape and lead this process of change by pursuing an agenda of wide ranging reforms and not simply narrow repatriation. Britain’s real interests lie in the EU as a whole being reformed to make it fit for purpose and better placed to compete in the new global race. But our chance of succeeding in this task is increased if it is positioned as right for all European countries, not just the UK. Subsidiarity within the EU is not a new idea, but an old one worth focusing on anew. At its inception the EU was designed to accommodate varying levels of integration and Britain has always benefited from this. If however, Britain were to open the door to an a la carte EU, it could be us that suffer as other member states demand reforms that undermine the single market.

Institutional flexibility and not unilateral national repatriations is what will best protect British interests within a reformed EU. In the past the case for the EU was based on delivering peace and prosperity. Today these are the foundations on which we must build a reformed Europe that effectively amplifies the power of each of its members.

Labour is clear that Britain's future lies within the European Union. But we also recognise that Europe today needs a reform agenda that prioritises growth, strengthens the single market, pools resources in defence effectively, promotes free trade deals regionally and globally, and develops systems to tackle climate change, cross border terror and crime.

Few would deny that David Cameron’s speech comes at a crucial time, but sadly it seems to be being made for all the wrong reasons. It simply won't have been worth the wait if Cameron's internal weakness results in a speech for his backbenchers instead of one for his country.

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

Douglas Alexander is the shadow foreign secretary and Labour MP for Paisley and Renfrewshire South.

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Is defeat in Stoke the beginning of the end for Paul Nuttall?

The Ukip leader was his party's unity candidate. But after his defeat in Stoke, the old divisions are beginning to show again

In a speech to Ukip’s spring conference in Bolton on February 17, the party’s once and probably future leader Nigel Farage laid down the gauntlet for his successor, Paul Nuttall. Stoke’s by-election was “fundamental” to the future of the party – and Nuttall had to win.
 
One week on, Nuttall has failed that test miserably and thrown the fundamental questions hanging over Ukip’s future into harsh relief. 

For all his bullish talk of supplanting Labour in its industrial heartlands, the Ukip leader only managed to increase the party’s vote share by 2.2 percentage points on 2015. This paltry increase came despite Stoke’s 70 per cent Brexit majority, and a media narrative that was, until the revelations around Nuttall and Hillsborough, talking the party’s chances up.
 
So what now for Nuttall? There is, for the time being, little chance of him resigning – and, in truth, few inside Ukip expected him to win. Nuttall was relying on two well-rehearsed lines as get-out-of-jail free cards very early on in the campaign. 

The first was that the seat was a lowly 72 on Ukip’s target list. The second was that he had been leader of party whose image had been tarnished by infighting both figurative and literal for all of 12 weeks – the real work of his project had yet to begin. 

The chances of that project ever succeeding were modest at the very best. After yesterday’s defeat, it looks even more unlikely. Nuttall had originally stated his intention to run in the likely by-election in Leigh, Greater Manchester, when Andy Burnham wins the Greater Manchester metro mayoralty as is expected in May (Wigan, the borough of which Leigh is part, voted 64 per cent for Brexit).

If he goes ahead and stands – which he may well do – he will have to overturn a Labour majority of over 14,000. That, even before the unedifying row over the veracity of his Hillsborough recollections, was always going to be a big challenge. If he goes for it and loses, his leadership – predicated as it is on his supposed ability to win votes in the north - will be dead in the water. 

Nuttall is not entirely to blame, but he is a big part of Ukip’s problem. I visited Stoke the day before The Guardian published its initial report on Nuttall’s Hillsborough claims, and even then Nuttall’s campaign manager admitted that he was unlikely to convince the “hard core” of Conservative voters to back him. 

There are manifold reasons for this, but chief among them is that Nuttall, despite his newfound love of tweed, is no Nigel Farage. Not only does he lack his name recognition and box office appeal, but the sad truth is that the Tory voters Ukip need to attract are much less likely to vote for a party led by a Scouser whose platform consists of reassuring working-class voters their NHS and benefits are safe.
 
It is Farage and his allies – most notably the party’s main donor Arron Banks – who hold the most power over Nuttall’s future. Banks, who Nuttall publicly disowned as a non-member after he said he was “sick to death” of people “milking” the Hillsborough disaster, said on the eve of the Stoke poll that Ukip had to “remain radical” if it wanted to keep receiving his money. Farage himself has said the party’s campaign ought to have been “clearer” on immigration. 

Senior party figures are already briefing against Nuttall and his team in the Telegraph, whose proprietors are chummy with the beer-swilling Farage-Banks axis. They deride him for his efforts to turn Ukip into “NiceKip” or “Nukip” in order to appeal to more women voters, and for the heavy-handedness of his pitch to Labour voters (“There were times when I wondered whether I’ve got a purple rosette or a red one on”, one told the paper). 

It is Nuttall’s policy advisers - the anti-Farage awkward squad of Suzanne Evans, MEP Patrick O’Flynn (who famously branded Farage "snarling, thin-skinned and aggressive") and former leadership candidate Lisa Duffy – come in for the harshest criticism. Herein lies the leader's almost impossible task. Despite having pitched to members as a unity candidate, the two sides’ visions for Ukip are irreconcilable – one urges him to emulate Trump (who Nuttall says he would not have voted for), and the other urges a more moderate tack. 

Endorsing his leader on Question Time last night, Ukip’s sole MP Douglas Carswell blamed the legacy of the party’s Tea Party-inspired 2015 general election campaign, which saw Farage complain about foreigners with HIV using the NHS in ITV’s leaders debate, for the party’s poor performance in Stoke. Others, such as MEP Bill Etheridge, say precisely the opposite – that Nuttall must be more like Farage. 

Neither side has yet called for Nuttall’s head. He insists he is “not going anywhere”. With his febrile party no stranger to abortive coup and counter-coup, he is unlikely to be the one who has the final say.