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The Euro has become a prison. There needs to be a way out

I've long opposed the single currency for Britain. But a middle way has to be found between leaving the European Union and being trapped by the single currency, and not just for the UK, argues Molly Scott Cato.

Eurosceptics will no doubt seek to capitalise on the misfortunes of the Greek people to further their own Brexit agenda. Indeed, it would be somewhat surprising if the Greek crisis and the way it has been handled by European leaders and institutions had not sown doubts in people’s minds. But as we enter the process of debating our place within the continent, and deciding whether this will include our membership of the European Union, it is important to draw a clear distinction between the European Union and the European currency of the Eurozone.

I must confess that the Eurozone is the issue where I have felt most isolated from other members of the Green group in the European Parliament. My colleagues are prepared to hear the serious reservations I have about the viability of a single currency, but do not sympathise with them. This in spite of the fact that nine other EU members have made the same decision as the UK, including Poland, Sweden, Denmark and the Czech Republic. By doing so, I believe they have also kept hold of vitally important economic powers.  

Perhaps we have forgotten just what a live issue the Euro was in the UK until relatively recently. Labour and the Liberal Democrats were keen for us to join the single currency. That we did not is, I think, credit to Jimmy Goldsmith, who poured money into a single-issue party to prevent this from happening. In 1997 the party stood candidates in every UK constituency to force this sole issue into the political debate and gave the Tories the courage to stand against the single currency.

 At that time I represented the UK on the steering group of the No Euro campaign. As Greens we broadened the campaign's base and provided political cover for the Little Englanders and their uncomfortable left wing allies.

I was also involved in the publication of a collection of essays that reflected a progressive case against the Euro. This outlined the extreme stretch of solidarity required by a functioning single currency area as well as critiquing the lack of democratic control over Eurozone institutions. It was a left wing argument for the preservation of national sovereignty, and for linking control of currency to where we vote, to match similar concerns on the political right.

Studying as I was for a PhD on employment policy at the time, I was party to the near unanimity of UK economists on the issue. It was a fairly easy question theoretically: with such a diverse range of economies requiring such wildly different interest rates, it was nearly impossible to conceive of the Eurozone as a single currency area. The success of the currency was always going to depend on the willingness of countries with more successful economies being prepared to transfer wealth to the weaker economies. A generation of European politicians decided to force that issue and the rise of Euroscepticism across the continent is the consequence. What was designed as a project to enhance solidarity and encourage federalism has done precisely the reverse.

Greece chose the loss of sovereignty that comes with joining a single currency. That has led to the appalling situation it faces today of losing control of its economic policy and its national assets, just as Portugal, Spain and Ireland did in their turn. But we should not allow the siren song of the anti-Europeans to blind us to the fact that it was the Euro and not the EU that gave the financiers this power. We do not face any similar loss of control precisely because we rejected the Euro and its flawed design.

Ever closer union is the logic of the European project and of the single currency area. This forced Union, brought about by the design of the Euro, is now undermining the whole EU. Those countries that are part of the single currency area will inevitably develop political and democratic institutions to guide how their currency is governed. Indeed, it is an urgent necessity that they do so. But there must also be a way out for countries for whom the Euro is now destructive and a way forward for countries that choose not to join but still want to be part of the European partnership.


Molly Scott Cato is Green MEP for the southwest of England, elected in May 2014. She has published widely, particularly on issues related to green economics. Molly was formerly Professor of Strategy and Sustainability at the University of Roehampton.

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The government needs more on airports than just Chris Grayling's hunch

This disastrous plan to expand Heathrow will fail, vows Tom Brake. 

I ought to stop being surprised by Theresa May’s decision making. After all, in her short time as Prime Minister she has made a series of terrible decisions. First, we had Chief Buffoon, Boris Johnson appointed as Foreign Secretary to represent the United Kingdom around the world. Then May, announced full steam ahead with the most extreme version of Brexit, causing mass economic uncertainty before we’ve even begun negotiations with the EU. And now we have the announcement that expansion of Heathrow Airport, in the form of a third runway, will go ahead: a colossally expensive, environmentally disastrous, and ill-advised decision.

In the House of Commons on Tuesday, I asked Transport Secretary Chris Grayling why the government is “disregarding widespread hostility and bulldozing through a third runway, which will inflict crippling noise, significant climate change effects, health-damaging air pollution and catastrophic congestion on a million Londoners.” His response was nothing more than “because we don’t believe it’s going to do those things.”

I find this astonishing. It appears that the government is proceeding with a multi-billion pound project with Grayling’s beliefs as evidence. Why does the government believe that a country of our size should focus on one major airport in an already overcrowded South East? Germany has multiple major airports, Spain three, the French, Italians, and Japanese have at least two. And I find it astonishing that the government is paying such little heed to our legal and moral environmental obligations.

One of my first acts as an MP nineteen years ago was to set out the Liberal Democrat opposition to the expansion of Heathrow or any airport in southeast England. The United Kingdom has a huge imbalance between the London and the South East, and the rest of the country. This imbalance is a serious issue which our government must get to work remedying. Unfortunately, the expansion of Heathrow does just the opposite - it further concentrates government spending and private investment on this overcrowded corner of the country.

Transport for London estimates that to make the necessary upgrades to transport links around Heathrow will be £10-£20 billion pounds. Heathrow airport is reportedly willing to pay only £1billion of those costs. Without upgrades to the Tube and rail links, the impact on London’s already clogged roads will be substantial. Any diversion of investment from improving TfL’s wider network to lines serving Heathrow would be catastrophic for the capital. And it will not be welcomed by Londoners who already face a daily ordeal of crowded tubes and traffic-delayed buses. In the unlikely event that the government agrees to fund this shortfall, this would be salt in the wound for the South-West, the North, and other parts of the country already deprived of funding for improved rail and road links.

Increased congestion in the capital will not only raise the collective blood pressure of Londoners, but will have severe detrimental effects on our already dire levels of air pollution. During each of the last ten years, air pollution levels have been breached at multiple sites around Heathrow. While a large proportion of this air pollution is caused by surface transport serving Heathrow, a third more planes arriving and departing adds yet more particulates to the air. Even without expansion, it is imperative that we work out how to clean this toxic air. Barrelling ahead without doing so is irresponsible, doing nothing but harm our planet and shorten the lives of those living in west London.

We need an innovative, forward-looking strategy. We need to make transferring to a train to Cardiff after a flight from Dubai as straightforward and simple as transferring to another flight is now. We need to invest in better rail links so travelling by train to the centre of Glasgow or Edinburgh is quicker than flying. Expanding Heathrow means missing our climate change targets is a certainty; it makes life a misery for those who live around the airport and it diverts precious Government spending from other more worthy projects.

The Prime Minister would be wise to heed her own advice to the 2008 government and “recognise widespread hostility to Heathrow expansion.” The decision to build a third runway at Heathrow is the wrong one and if she refuses to U-turn she will soon discover the true extent of the opposition to these plans.

Tom Brake is the Liberal Democrat MP for Carshalton & Wallington.