David Cameron: The Good European

The PM sees the EU as part of the solution, not the problem for the UK economy - a brave position to take as leader of today's Tory party.

Well that’s me told. Back in January, a couple of weeks before David Cameron delivered the speech in which he first promised an in/out referendum on Britain’s European Union membership, I wondered whether the Prime Minister’s “Global Race” story was pro-EU or anti.

It could go either way (which is, I suppose, the purpose of a plastic slogan). The demands of creating slim-line, super competitive, non-bureaucratic, low tax economy might militate against the onerous obligation to run every decision through Brussels. Or, the prospect of a future in which the rules of trade will be dictated by continental Titans – the US, India, China – might make it imperative that the UK amplify its power in the only forum that can match those beasts for market heft, which is the EU. Which way would Cameron jump?

Now we have the answer, and it isn’t going to go down well on the right of the Conservative party. In a speech today on the topic of Britain’s role in the world, Cameron makes it clear that he sees EU membership as a race-winning supplement not an obstacle:

Another key part of that effort is our place at the top table. At the UN. The Commonwealth. NATO. The WTO. The G8. The G20. And yes – the EU. Membership of these organisations is not national vanity – it is in our national interest. The fact is that it is in international institutions that many of the rules of the game are set on trade, tax and regulation. When a country like ours is affected profoundly by those rules, I want us to have a say on them. 

This should be an uncontroversial statement. There is no credible model of Britain’s relations with the rest of Europe that doesn’t require deep integration with the single market – the agreed space for internally consistent trading rules, allowing free cross-border movement of goods and labour. The obvious way to make that arrangement work to the UK’s advantage is to be one of the countries at the negotiating table when new regulations are discussed. Leaving the EU would mean ditching the right to change the rules while, in most cases, still being bound by them. If you want to be all purist about the sovereignty issue, that sounds like being “out” involves a greater surrender of national autonomy than staying “in”.

Cameron will have been prompted to make this intervention by alarmed noises emanating from British exporters. Although business leaders are generally reluctant to get involved in political controversies, the message being passed to Downing Street is that wild speculation about the UK walking away from the EU table is most unwelcome. London’s diplomatic influence in Brussels is already waning with alarming speed.

Of course, the hardline sceptics see this as typical lily-livered Europhilia. The rest of Europe needs the UK’s market and wants to export to us as much as we want to export to them. A mutually beneficial deal, say the sceps, can be done that keeps the benefits of free trade and junks all the pseudo-state apparatus of legal and political integration. Besides, if the future of trade is with China, India and Brazil, why shouldn’t the UK strike out alone, in true buccaneering fashion, no longer “shackled to the corpse” – as some Tory MPs describe it – of a sclerotic, statist, debt-laden, enfeebled Eurozone. (What this argument likes to ignore is the way that Germany manages quite happily to sell six times as many goods to China as the UK while remaining entirely enmeshed in institutional apparatus of the EU. For more on that, and other rebuttals of the anti-EU case, I recommend this article by Katinka Barysch of the Centre for European Reform.)

The reality, of course, is that the anti-EU position begins with visceral, nationalist hatred of the whole project and then retro-fits libertarian ideas to make quitting sound economically feasible. It is to Cameron’s credit that he doesn’t play that game and that, ultimately, he recognises the long-term strategic advantages of active engagement in Brussels. Where it gets a bit awkward is if he follows that logic to ponder which powers he seriously wants to “repatriate” as part of his planned renegotiation of Britain’s EU membership.

If, as his speech today implies, he wants Britain’s role in Europe to be advancing an agenda to boost competitive reform within the single market – playing “global race” personal trainer to the rest of the continent – he won’t want to spend too much diplomatic capital demanding special UK exemptions from EU law to satisfy his insatiable back benchers. He knows that a British Prime Minister has better things to ask for in Brussels than concessions that Ukippers and Tory militants will in any case jeer as inadequate. By acknowledging today that participation in the EU project is part of the solution not the problem of British competitiveness, Cameron has finally outed himself as a “good European.” Very brave, Prime Minister.

David Cameron attends a press conference at the EU headquarters on May 22, 2013 in Brussels. Photograph: Getty Images.

Rafael Behr is political columnist at the Guardian and former political editor of the New Statesman

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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