The EU isn't too big to fail, but it is too important to

Contrary to Nigel Lawson, the EU is not a monstrous bureaucracy, but the policy mix of austerity and reform is failing.

I spoke at the Annual European University Institute "State of the Union" conference yesterday. It takes place in the Palazzo Vecchio in Florence, adorned with 500 year old frescoes commemorating the first Florentine Republic after the expulsion of the Medicis – a good reminder that the process of European integration has deep roots.

There was a lot of realism – about the continuing challenge of the euro crisis, about the long-term nature of structural reform, about the gulf between too many citizens and European governance. But there was also a deep determination to preserve the gains of the past – for example in President Barroso’s speech – and wherever I went, a desire to see Britain as part of the European future. In my contribution, in the session on governance and institutions, I made five points.

First, that the debate about legitimacy and efficiency/delivery is happening all over the world. The Chinese are thinking about it; the Americans are debating it in the discussion of 'gridlock'; it is part of the debate in the Arab world as governments elected after the revolutions of 2011 are faced with real economic and social choice. In Europe, legitimacy has two elements – the 'one nation one vote' principle embodied in the European Council, and the 'one person one vote' principle in the European Parliament. The danger for the EU – as elsewhere – is whether legitimacy AND efficiency is missing.

Second, the protest politics in Britain, Italy and elsewhere, is not just (or primarily) about frustration with the EU; it speaks fundamentally to frustration with the traditional politics of centre-right and centre-left, and the desire for a new political alternative. For me, that is about rejuvenating social democracy, but there is no point in hiding that a traditional social democratic offer of social justice through state redistribution is not going to work or sell.

Third, the EU’s biggest problem is its delivery deficit, not its democratic deficit. This is not a new tune of mine, but while some of the EU’s work is very good indeed – I have just spent two days in Brussels preparing for my International Rescue Committee role and learning about some outstanding European development work in crisis-hit places – the policy mix in response to the economic crisis is still some way from bringing closer the light at the end of the tunnel. I don’t buy the Nigel Lawson argument that the EU is a monstrous and marauding bureaucracy, but the policy mix of austerity and reform is out of kilter with the economic needs in a balance sheet recession.

Fourth, there is a pressing and outstanding agenda for Europe’s soon to be 28 members, beyond the euro crisis. I won’t rehearse again what this covers, but the sense that there is traction on youth unemployment and migration is encouraging.

Finally, the twin narratives of Europe’s development so far – peace on the continent, and reunification after the fall of the Berlin Wall - need to be supplemented by a clarion call that Europe’s purpose is to help its citizens achieve prosperity and security in a 21st century marked by shifts in global power. This cannot be done at national level alone, nor by ad-hoc alliances around the globe to take forward trade promotion or security cooperation.

I don’t buy the argument that Europe is 'too big to fail'. But I do buy the case that it is too important to fail.

David Miliband is the incoming President and CEO of the International Rescue Committee

This piece originally appeared on his blog

The EU flag flies in front of the European Parliament in Strasbourg. Photograph: Getty Images.

David Miliband is the  President and CEO of the International Rescue Committee
He was foreign secretary from 2007 until 2010 and MP for South Shields from 2001 until this year. 

Photo: Getty Images
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The buck doesn't stop with Grant Shapps - and probably shouldn't stop with Lord Feldman, either

The question of "who knew what, and when?" shouldn't stop with the Conservative peer.

If Grant Shapps’ enforced resignation as a minister was intended to draw a line under the Mark Clarke affair, it has had the reverse effect. Attention is now shifting to Lord Feldman, who was joint chair during Shapps’  tenure at the top of CCHQ.  It is not just the allegations of sexual harrassment, bullying, and extortion against Mark Clarke, but the question of who knew what, and when.

Although Shapps’ resignation letter says that “the buck” stops with him, his allies are privately furious at his de facto sacking, and they are pointing the finger at Feldman. They point out that not only was Feldman the senior partner on paper, but when the rewards for the unexpected election victory were handed out, it was Feldman who was held up as the key man, while Shapps was given what they see as a relatively lowly position in the Department for International Development.  Yet Feldman is still in post while Shapps was effectively forced out by David Cameron. Once again, says one, “the PM’s mates are protected, the rest of us shafted”.

As Simon Walters reports in this morning’s Mail on Sunday, the focus is turning onto Feldman, while Paul Goodman, the editor of the influential grassroots website ConservativeHome has piled further pressure on the peer by calling for him to go.

But even Feldman’s resignation is unlikely to be the end of the matter. Although the scope of the allegations against Clarke were unknown to many, questions about his behaviour were widespread, and fears about the conduct of elections in the party’s youth wing are also longstanding. Shortly after the 2010 election, Conservative student activists told me they’d cheered when Sadiq Khan defeated Clarke in Tooting, while a group of Conservative staffers were said to be part of the “Six per cent club” – they wanted a swing big enough for a Tory majority, but too small for Clarke to win his seat. The viciousness of Conservative Future’s internal elections is sufficiently well-known, meanwhile, to be a repeated refrain among defenders of the notoriously opaque democratic process in Labour Students, with supporters of a one member one vote system asked if they would risk elections as vicious as those in their Tory equivalent.

Just as it seems unlikely that Feldman remained ignorant of allegations against Clarke if Shapps knew, it feels untenable to argue that Clarke’s defeat could be cheered by both student Conservatives and Tory staffers and the unpleasantness of the party’s internal election sufficiently well-known by its opponents, without coming across the desk of Conservative politicians above even the chair of CCHQ’s paygrade.

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.