Alex Salmond with SNP leader Nicola Sturgeon last year. Photo: Jeff J Mitchell/Getty Images
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Miliband v Miliband, Big Alex at Westminster and the rise of quiet conservatism

New Statesman editor Jason Cowley gives his election post-mortem.

On the morning of 12 May I visited Portcullis House in Westminster to see who might be around. The first MP I met was none other than a very cheerful Alex Salmond, who had just discovered that his new office overlooked the Treasury: “I can keep an eye on them from there.” He said that he would naturally have preferred a “balanced parliament – as you would”. And he asked for 50 copies of our recent issue in which, in one of David Young’s cover illustrations, he was featured alongside Nicola Sturgeon as they rode the Flying Scotsman south. The train was hurtling towards Ed Miliband and David Cameron, both prostrate and tied to the track, resigned to their fate.

Cover image by David Young.

 

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A few of our readers complained we’d made the mistake of equating Scotland with the SNP. That wasn’t our intention. But whether Westminster likes it or not, the SNP has arrived en masse, the largest grouping of nationalist MPs in London since the early 20th century, when the Irish Parliamentary Party enabled Asquith’s reforming Liberal government to hold power after the ­December 1910 general election. Their presence adds a fascinating dimension to the new parliament and will be a daily rebuke to a shattered Labour. The wipeout of Labour in Scotland, though it was not unexpected, has left the party understandably traumatised. “We did everything we knew locally but the national wave was just too strong,” one defeated Scottish MP said to me.

In the SNP landslide Labour lost two of its most intelligent MPs – Douglas Alexander and Gregg McClymont – and, in Jim Murphy, one of its toughest street fighters. Murphy will continue for now as leader of Scottish Labour. He ought to ignore the bullying of the Unite leader, Len McCluskey, who has called for his resignation and gives the impression of preferring the futilities of opposition to power.

The forces powering Scottish nationalism are varied – deindustrialisation, the fracturing of cross-border class ­solidarity, the decline of trade unionism, the rise of identity politics, and so on. Yet, in spite of all this, as I have written before, the Labour leadership in London was complacent about the events unfolding in Scotland and was unable to respond until it was too late.

Perhaps arrogance and a sense of entitlement blinded Labour to the seriousness of the nationalist surge. I’m a frequent visitor – my oldest friend is an academic at Glasgow University – and it was obvious to me, even as an Englishman, that Labour was destined to lose the 2011 Scottish election – as it did, badly, creating the circumstances in which an independence referendum could be held. There was little Labour could do to resist the torrential surge in support for the SNP in 2015; there was much it could and should have done to thwart the nationalist victory in 2011.

Now activists to whom I have spoken are seriously asking if Labour can ever win again in Scotland. Back in the 1980s when the party was weak it was still strong in Scotland. Today it faces a dual challenge: of trying to win in Scotland, where the SNP has positioned itself to the left and campaigned as an anti-austerity party, as well as south of the Severn-Wash line where, excluding London, it holds only 11 of 197 seats. Deep is the grave in which . . .

 

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The New York-resident David Miliband has moved quickly to say what his younger brother got wrong – he mentioned “aspiration and inclusion” and said that Ed had given the impression the party was going “backwards” under him. When asked by a BBC interviewer about their relationship, David said, his eyes cold and dark, that they “were in touch”, no more or less than that.

Also on Tuesday David tweeted a link to a column by the New York Times writer David Brooks, the paper’s resident conservative. Brooks is interested in ideas and social trends, and uses data intelligently to support his arguments. Like many conservatives, he was intrigued by the Tory election victory and asked why after the financial crisis and the consequent Great Recession – especially considering the “unpopularity of the right’s stances on social issues and immigration” – the world had not turned left. Ed Miliband wagered his entire leadership and election strategy on a belief – and it was no more than this – that the electorate was yearning for a more egalitarian society and a return to socialism. Voters were certainly disturbed by widening inequality but just as important were a desire for fiscal rectitude and balanced budgets.

Yet, according to Brooks, as well as people’s scepticism about the left, “there are a few things centre-right parties have done successfully”. They have championed “national identity”, they have been “basically sensible on fiscal policy” and they have not “overread their mandate”. He went on:

Globally, voters are disillusioned with large public institutions. They seem to want to reassert local control and their own particular nationalism (Scottish or anything else). But they also seem to want a slightly smaller public sector, strong welfare state reform and more open and vibrant labour markets as a path to prosperity.

So if, as Brooks suggests, we are entering a new era of pragmatic conservative rule how should Labour respond, if it is not to be locked out of power for the next decade?

So far, the leadership contenders putting themselves about in the aftermath of defeat have been muttering about “aspiration”, as if the act of articulation were simultaneously an act of redefinition – and of absolution. Meanwhile, in other news, Ed Miliband has gone on holiday to Ibiza.

 

Now read Jason Cowley's pre-election piece on "white van conservatism" and the battle for the soul of Essex Man

Jason Cowley is editor of the New Statesman. He has been the editor of Granta, a senior editor at the Observer and a staff writer at the Times.

This article first appeared in the 14 May 2015 issue of the New Statesman, The Tory triumph

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Leader: The unresolved Eurozone crisis

The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving.

The eurozone crisis was never resolved. It was merely conveniently forgotten. The vote for Brexit, the terrible war in Syria and Donald Trump’s election as US president all distracted from the single currency’s woes. Yet its contradictions endure, a permanent threat to continental European stability and the future cohesion of the European Union.

The resignation of the Italian prime minister Matteo Renzi, following defeat in a constitutional referendum on 4 December, was the moment at which some believed that Europe would be overwhelmed. Among the champions of the No campaign were the anti-euro Five Star Movement (which has led in some recent opinion polls) and the separatist Lega Nord. Opponents of the EU, such as Nigel Farage, hailed the result as a rejection of the single currency.

An Italian exit, if not unthinkable, is far from inevitable, however. The No campaign comprised not only Eurosceptics but pro-Europeans such as the former prime minister Mario Monti and members of Mr Renzi’s liberal-centrist Democratic Party. Few voters treated the referendum as a judgement on the monetary union.

To achieve withdrawal from the euro, the populist Five Star Movement would need first to form a government (no easy task under Italy’s complex multiparty system), then amend the constitution to allow a public vote on Italy’s membership of the currency. Opinion polls continue to show a majority opposed to the return of the lira.

But Europe faces far more immediate dangers. Italy’s fragile banking system has been imperilled by the referendum result and the accompanying fall in investor confidence. In the absence of state aid, the Banca Monte dei Paschi di Siena, the world’s oldest bank, could soon face ruin. Italy’s national debt stands at 132 per cent of GDP, severely limiting its firepower, and its financial sector has amassed $360bn of bad loans. The risk is of a new financial crisis that spreads across the eurozone.

EU leaders’ record to date does not encourage optimism. Seven years after the Greek crisis began, the German government is continuing to advocate the failed path of austerity. On 4 December, Germany’s finance minister, Wolfgang Schäuble, declared that Greece must choose between unpopular “structural reforms” (a euphemism for austerity) or withdrawal from the euro. He insisted that debt relief “would not help” the immiserated country.

Yet the argument that austerity is unsustainable is now heard far beyond the Syriza government. The International Monetary Fund is among those that have demanded “unconditional” debt relief. Under the current bailout terms, Greece’s interest payments on its debt (roughly €330bn) will continually rise, consuming 60 per cent of its budget by 2060. The IMF has rightly proposed an extended repayment period and a fixed interest rate of 1.5 per cent. Faced with German intransigence, it is refusing to provide further funding.

Ever since the European Central Bank president, Mario Draghi, declared in 2012 that he was prepared to do “whatever it takes” to preserve the single currency, EU member states have relied on monetary policy to contain the crisis. This complacent approach could unravel. From the euro’s inception, economists have warned of the dangers of a monetary union that is unmatched by fiscal and political union. The UK, partly for these reasons, wisely rejected membership, but other states have been condemned to stagnation. As Felix Martin writes on page 15, “Italy today is worse off than it was not just in 2007, but in 1997. National output per head has stagnated for 20 years – an astonishing . . . statistic.”

Germany’s refusal to support demand (having benefited from a fixed exchange rate) undermined the principles of European solidarity and shared prosperity. German unemployment has fallen to 4.1 per cent, the lowest level since 1981, but joblessness is at 23.4 per cent in Greece, 19 per cent in Spain and 11.6 per cent in Italy. The youngest have suffered most. Youth unemployment is 46.5 per cent in Greece, 42.6 per cent in Spain and 36.4 per cent in Italy. No social model should tolerate such waste.

“If the euro fails, then Europe fails,” the German chancellor, Angela Merkel, has often asserted. Yet it does not follow that Europe will succeed if the euro survives. The continent that once aspired to be a rival superpower to the US is now a byword for decline, and ethnic nationalism and right-wing populism are thriving. In these circumstances, the surprise has been not voters’ intemperance, but their patience.

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump