May’s European Parliament elections did nothing to prompt a response to the EU’s “democratic deficit”. Photo: Getty
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I was a teenage Europhile – but the EU’s sadistic austerity and lack of democracy changed my mind

Fast-forward 15-odd years and my wild-eyed teenage Europhilia is a source of much embarrassment.

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“Any chance of a retweet?” the Conservative MEP and ardent Eurosceptic Daniel Hannan asked me on Twitter a few days ago. He was highlighting a video that singles out British politicians and business leaders who called for the UK to join the euro back in the late 1990s. The video is entitled, rather provocatively, Wrong Then, Wrong Now.

I politely declined Hannan’s request, sheepishly confessing to him that . . . er . . . I happened to be one of those people who were “wrong then”. In my defence, I was a mere undergraduate, rather than a Peter Mandelson or a Richard Branson, but I did nevertheless agitate for British membership of the single currency in countless articles, essays and public debates.

Fast-forward 15-odd years and my wild-eyed teenage Europhilia is a source of much embarrassment. Today, Europe is only marginally more popular with the public than ebola; hard-right parties are sweeping to victory in European elections in the UK, France and Denmark; and the eurozone has only narrowly dodged a triple-dip recession. With all this going on, it’s pretty difficult to mount a credible defence of the single currency or, for that matter, the EU itself.

Let’s start with the euro. What on earth were we thinking? How could anyone with the faintest grasp of economics have believed it was anything other than sheer insanity to yoke together diverse national economies such as Greece, Ireland, Germany and Finland under a single exchange rate and a single interest rate? And, lest we forget, without a US-style system of fiscal transfers or culture of labour mobility to compensate?

There were dissenting voices. Big-name US economists, from the Princeton University liberal Paul Krugman to the Harvard conservative Martin Feldstein, warned that the euro would be an “invitation to disaster” and an “economic liability”. An internal EU report later summed up the view of US economists on the euro project as: “It can’t happen, it’s a bad idea, it won’t last.”

Then there’s the fiscal self-flagellation of recent years, unnecessarily “inflicted in the service of a man-made artifice, the euro”, to quote another US economist, the Nobel Prizewinner Joseph Stiglitz. Has there ever been a better advert for the failure of austerity? Greece, Spain, Portugal and Ireland, in particular, have been brutalised by the fiscally sadistic policies demanded by the “troika” of the International Monetary Fund, the European Central Bank and the European Commission – and backed by the dead-eyed deficit hawks in Germany. In Greece, malaria returned for the first time in 40 years; in Spain, students in Catalonia had their toilet paper rationed; in Portugal, soup kitchens proliferated; in Ireland, suicides among men rose sharply. While the eurozone continues its orgy of self-harm, the broader EU is in the midst of an unprecedented and existential political crisis: a crisis of democracy, accountability and legitimacy, with citizens feeling ever less connected to the decision-makers in Brussels and Strasbourg.

Did May’s European Parliament election results – described as a political “earthquake” by the French prime minister, Manuel Valls – convince the continent’s leaders, both elected and unelected, to take a step back and try to tackle the EU’s “democratic deficit”? If only. Despite turnout declining in every single set of European parliamentary elections since they were first introduced in 1979 – and despite the European Commission’s polling suggesting that trust in EU institutions, at 31 per cent, is at an all-time low – members of the EU elite march on towards “ever closer union”, incompetently, indifferently, in denial.

Consider Viviane Reding, the former EC vice-president. In a recent interview with me for my al-Jazeera show Head to Head, she urged her former colleagues on the (unelected) EU commission to behave “like [an] army” and a “government” moving forward at “full speed”. “You cannot have 28 [member states] doing whatever they want,” Reding told me.

It’s as if the European elections never happened. As Bertolt Brecht once put it, “Would it not be easier . . . for the government to dissolve the people and elect another?” Or as the new EC president, Jean-Claude Juncker, pompously proclaimed, in reference to the 2005 French referendum on the EU constitution: “If it’s a Yes, we will say, ‘On we go,’ and if it’s a No, we will say, ‘We continue.’”

That isn’t a description of democracy that I recognise. To talk of a “democratic deficit” at the heart of the EU project would be a gross understatement. If the EU were a nation state and tried to join the EU, it would probably be rejected for not being democratic enough.

So, where have all of its progressive critics gone? The left across Europe has been seduced by the EU’s promise of workers’ rights – forgetting that you can’t enjoy those rights if you don’t have a job to begin with. Mass unemployment is now a fact of life across swaths of the EU and, especially, the eurozone. More than half of young people are jobless in both Greece and Spain, yet unelected Eurocrats still want more growth-choking austerity.

This is a political and economic scandal, not to mention a human tragedy. And progressives should be saying so. But the left in the UK has ceded all the Eurosceptic terrain to the xenophobes and the “Little Englanders”, to Ukip and the Tory right. We were wrong then. Let’s not be wrong now.

Mehdi Hasan is a contributing writer at the NS and the political director of Huffington Post UK, where this column is crossposted. His “Head to Head” with Viviane Reding will be broadcast on al-Jazeera English on 28 November

Mehdi Hasan is a contributing writer for the New Statesman and the co-author of Ed: The Milibands and the Making of a Labour Leader. He was the New Statesman's senior editor (politics) from 2009-12.

This article first appeared in the 20 November 2014 issue of the New Statesman, The deep roots of Isis

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Lord Sainsbury pulls funding from Progress and other political causes

The longstanding Labour donor will no longer fund party political causes. 

Centrist Labour MPs face a funding gap for their ideas after the longstanding Labour donor Lord Sainsbury announced he will stop financing party political causes.

Sainsbury, who served as a New Labour minister and also donated to the Liberal Democrats, is instead concentrating on charitable causes. 

Lord Sainsbury funded the centrist organisation Progress, dubbed the “original Blairite pressure group”, which was founded in mid Nineties and provided the intellectual underpinnings of New Labour.

The former supermarket boss is understood to still fund Policy Network, an international thinktank headed by New Labour veteran Peter Mandelson.

He has also funded the Remain campaign group Britain Stronger in Europe. The latter reinvented itself as Open Britain after the Leave vote, and has campaigned for a softer Brexit. Its supporters include former Lib Dem leader Nick Clegg and Labour's Chuka Umunna, and it now relies on grassroots funding.

Sainsbury said he wished to “hand the baton on to a new generation of donors” who supported progressive politics. 

Progress director Richard Angell said: “Progress is extremely grateful to Lord Sainsbury for the funding he has provided for over two decades. We always knew it would not last forever.”

The organisation has raised a third of its funding target from other donors, but is now appealing for financial support from Labour supporters. Its aims include “stopping a hard-left take over” of the Labour party and “renewing the ideas of the centre-left”. 

Julia Rampen is the digital news editor of the New Statesman (previously editor of The Staggers, The New Statesman's online rolling politics blog). She has also been deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines. 

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