It's unaccountable corporations, not socialism and the state, that the public loathe

In whipping itself into a frenzy over Miliband’s plan to freeze energy prices, the right has turned a blind eye to mounting revulsion over private firms.

Judging by certain Tory op-eds, you could be forgiven for thinking the Red Army has been given permission to water its horses in the River Thames. On the loose is a fanatical "demagogue [who] wants to fuel tensions and the politics of envy", according to City AM editor Allister Heath. Britain is on the "road to tyranny”, according to Iain Martin of the Telegraph.

Believe it or not, red revolution is not imminent, and Lenin remains safely encased in his mausoleum in Red Square. Over in Cuba, Raul Castro is pressing ahead with free-market reforms, and to my knowledge there have been no recent sightings of the Soviets in Afghanistan.

Mild-mannered Labour leader Ed Miliband has, however, pledged to freeze energy bills for 20 months should his party win the 2015 election. And these days, that’s apparently all it takes for a red scare.

At some point during the past 30 years, the mildest hint of social democracy became a symptom of innate Jacobinism. Fastened like glue to a dogma which dictates that one can never interfere in markets without catastrophically distorting them, the fact the country escaped financial catastrophe five years ago only because of massive state intervention has entirely passed the right by. A Labour leader has said the state must intervene to ensure that people can adequately heat their homes; therefore the country is on the road to serfdom. Such is the level of public debate in much of the Tory press.

In noisily whipping itself into a frenzy over Miliband’s plan to freeze energy prices, the right has turned a blind eye to mounting revulsion over private firms bloating and sating themselves on public money for the benefit of the few who are good at guessing on the stock exchange. Not only is public opinion increasingly at odds with socialism for the rich - in 2010/11, Network Rail, the private owner and operator of most of Britain’s rail infrastructure, was subsidised by the taxpayer to the tune of £3.96bn - but voters are significantly more red than 'Red Ed' when it comes to state intervention in the economy.

In 2009, for example, data showed that 31 per cent strongly supported the renationalisation of electricity, gas, water, railways and telecommunications, with 36 per cent slightly supporting renationalisation. According to a ComRes poll taken earlier this month, 69 per cent wanted energy renationalised.

The trend is similar in other sectors of the economy too. Seventy per cent are against the sell-off of the Royal Mail, according to a recent Sunday Times poll, while 53 per cent believe private sector involvement in the NHS undermines the health service. As for the railways, a poll conducted last year found that over half the public supported full nationalisation, with even Conservative supporters preferring nationalisation to the status quo (Mail on Sunday stalwart Peter Hitchens wants the railways returned to public ownership, for crying out loud).

The politicians’ mantra of public bad, private good has become just that: an empty mantra, espoused by a political class that is increasingly at odds with the views of those they are supposed to represent.

The mistake would be to draw from this an unrealistic, romanticised image of old-style state ownership, which in reality could be just as unaccountable and inefficient as the very worst of the private sector. Despite what his detractors say, Ed Miliband is not advocating a return to state ownership, nor is he planning to introduce 1970s-style price controls; he is proposing a freeze on the price of energy lasting a mere 20 months. In other words, a very temporary brake on fat cats getting fatter while the elderly shiver in homes they can no longer afford to heat (in March of this year, five Centrica executives pocketed £16.4m).

But public enthusiasm for a reassertion of government control over essential services should give the left heart even if it would be a mistake to pretend that it is 1945 all over again. Public disaffection with the private ownership of large natural monopolies provides ample public space to promote other, more democratic models of ownership in which workers participate fully in the running of their enterprises and, just as importantly, have a say when it comes to divvying up the profits. Democratic socialism, I believe it is called.

Appropriately, it was Karl Marx who once wrote that the tradition of all dead generations "weighs like a nightmare on the brains of the living". In this respect, the zeal for privatisation that reached a zenith in the 1980s has left an indelible impression on our political elite, many of whom came of age during Margaret Thatcher’s enthusiastic attempt at dismantling the post-war consensus. While the public has long since moved on, many conservative commentators remain marooned in the 1980s, instinctively horrified by a reality that sits uneasily with many of their most basic assumptions.

Today it isn’t corrupt bureaucrats or incompetent state managers that people are fed up of, but private sector fat cats who jack up the prices of things we cannot do without and then hold the country to ransom when anyone has the temerity to question it. No wonder Ed Miliband was so quick to reply in the affirmative when asked if he was "bringing back socialism": he might well be on to a vote winner. 

EDF, one of the "big six" energy companies that control 98% of the retail market. Photograph: Getty Images.

James Bloodworth is editor of Left Foot Forward

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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.