Labour needs a Commission on Europe

Such a Commission would ask hard questions, but also be more productive than David Cameron's opportunistic offer of a referendum.

So how should Labour respond to David Cameron and Nigel Farage on Europe? The reflex denunciations of opportunism and short-termism - Cameron as a Tory version of the 1970s Harold Wilson - are OK for the time being but do not take us very far.

Ed Miliband has done well to position Labour as not being hostile in principle to a referendum but politely asking where is the agreement to a new EU Treaty or to Britain's a la carte renogiation announced by the prime minister.

But this holding policy is not enough. When I was elected to the European Parliament in 1989 it was the beginning of Labour's decade of euphoria. Jacques Delors had made his famous Social Europe speech at the TUC and the Tories were destroyed by their ERM debacle and Maastricht divisions.

Tony Blair trashed Tory isolationism and mocked John Major 's feeble Europe policy.

When I stood down as leader of Labour MEPs in 2000, the uncritical EU enthusiasm was already fading. The Treasury did not like the Euro. Blair blocked or delayed key pro-worker directives. The Amsterdam and Nice Treaties did not lead to the abolition of Britain as John Redwood declared but nor did they make the EU work better.

North America or the BRICS were far more exciting in economic terms than slow growth Europe.

Foreign policy unity evaporated over Iraq. The Lib Dems came out for a referendum on the EU constitutional treaty, obliging Blair to follow rather than lead in setting the nation's Europe policy.

Europe became a hate word as a new generation of Tories headed by Cameron, Liam Fox, William Hague and IDS competed in scorning and rubbishing the EU. It was impossible to be selected as a Tory candidate unless an oath of dis-allegiance to the EU was sworn.

Cameron broke political links with centre right leaders like Angela Merkel, Nicolas Sarkozy and Jose Manuel Barroso. Nigel Farage emerged as Cameron's dark avatar saying in public what top Tories say in the tea room.

Month by month Cameron found himself being devoured by his own creation. Tory Europhobia took on its own life. It demanded the red meat of an in-out referendum.

Now Cameron has provoked a crisis in Europe with his overt willingness to accept Britain leaving the EU in 2017 and the consequent crisis that will rock Europe in a way not seen since the 1930s. So what should Labour's response be?

There is a short term flurry of Newsnight or Today appearances but Labour needs a long term strategic response to the European question.

After John Smith took over as Labour leader in 1992 he realized that the piece meal approach to the Thatcher revolution of the 1980s was insufficient. Shadow cabinet ministers did not have the capacity to think more widely beyond the demands of tactical Commons oppositionism.

Smith set up the Commission for Social Justice with a broad membership and a wide remit to come up with what turned into the modernized social democracy that won Labour three elections. It brought new younger thinkers and future politicians like David Miliband into active politics.

Ed Miliband should set up a wide ranging Commission on Europe to produce, ahead of the 2015 election, a wide ranging programme for Britain's future relationship with Europe. A Commission on Europe should have a membership well beyond Labour and should search new younger thinkers not the representatives of the Blair era pro Europeans. It should involve business leaders - not those who sign the usual letters to the FT on EU matters but new generation entrepreneurs. Seats should be reserved for thinkers from continental nations.

The Commission should ask hard questions about economic reform, including how to improve genuine cooperation that can lead to greater competitiveness while promoting social justice. It could examine why so many trade unions in the EU still feel comfortable with 20th century oppositionist and confrontational politics rather than the no-strike cooperation with capital that has preserved jobs and training in Nordic or German speaking Europe.

It should propose serious reforms to EU institution including the size and scope of the Commission and how national parliaments could have co-decision powers with the Parliament in Strasbourg.

The question of a referendum is part of the process. But in contrast to David Cameron's opportunistic vote seeking decision to begin by offering us a chance to quit Europe, a Commission on Europe would offer the fresh analysis and thinking that political parties have avoided for more than a decade.

Alan Donnelly was Leader of the Labour MEPs in the European Parliament

 

David Cameron gives a press conference after an EU summit last October. Photograph: Getty Images
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Theresa May’s Brexit speech is Angela Merkel’s victory – here’s why

The Germans coined the word “merkeln to describe their Chancellor’s approach to negotiations. 

It is a measure of Britain’s weak position that Theresa May accepts Angela Merkel’s ultimatum even before the Brexit negotiations have formally started

The British Prime Minister blinked first when she presented her plan for Brexit Tuesday morning. After months of repeating the tautological mantra that “Brexit means Brexit”, she finally specified her position when she essentially proposed that Britain should leave the internal market for goods, services and people, which had been so championed by Margaret Thatcher in the 1980s. 

By accepting that the “UK will be outside” and that there can be “no half-way house”, Theresa May has essentially caved in before the negotiations have begun.

At her meeting with May in July last year, the German Chancellor stated her ultimatum that there could be no “Rosinenpickerei” – the German equivalent of cherry picking. Merkel stated that Britain was not free to choose. That is still her position.

Back then, May was still battling for access to the internal market. It is a measure of how much her position has weakened that the Prime Minister has been forced to accept that Britain will have to leave the single market.

For those who have followed Merkel in her eleven years as German Kanzlerin there is sense of déjà vu about all this.  In negotiations over the Greek debt in 2011 and in 2015, as well as in her negotiations with German banks, in the wake of the global clash in 2008, Merkel played a waiting game; she let others reveal their hands first. The Germans even coined the word "merkeln", to describe the Chancellor’s favoured approach to negotiations.

Unlike other politicians, Frau Merkel is known for her careful analysis, behind-the-scene diplomacy and her determination to pursue German interests. All these are evident in the Brexit negotiations even before they have started.

Much has been made of US President-Elect Donald Trump’s offer to do a trade deal with Britain “very quickly” (as well as bad-mouthing Merkel). In the greater scheme of things, such a deal – should it come – will amount to very little. The UK’s exports to the EU were valued at £223.3bn in 2015 – roughly five times as much as our exports to the United States. 

But more importantly, Britain’s main export is services. It constitutes 79 per cent of the economy, according to the Office of National Statistics. Without access to the single market for services, and without free movement of skilled workers, the financial sector will have a strong incentive to move to the European mainland.

This is Germany’s gain. There is a general consensus that many banks are ready to move if Britain quits the single market, and Frankfurt is an obvious destination.

In an election year, this is welcome news for Merkel. That the British Prime Minister voluntarily gives up the access to the internal market is a boon for the German Chancellor and solves several of her problems. 

May’s acceptance that Britain will not be in the single market shows that no country is able to secure a better deal outside the EU. This will deter other countries from following the UK’s example. 

Moreover, securing a deal that will make Frankfurt the financial centre in Europe will give Merkel a political boost, and will take focus away from other issues such as immigration.

Despite the rise of the far-right Alternative für Deutschland party, the largely proportional electoral system in Germany will all but guarantee that the current coalition government continues after the elections to the Bundestag in September.

Before the referendum in June last year, Brexiteers published a poster with the mildly xenophobic message "Halt ze German advance". By essentially caving in to Merkel’s demands before these have been expressly stated, Mrs May will strengthen Germany at Britain’s expense. 

Perhaps, the German word schadenfreude comes to mind?

Matthew Qvortrup is author of the book Angela Merkel: Europe’s Most Influential Leader published by Duckworth, and professor of applied political science at Coventry University.