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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. She is Green Party parliamentary candidate for Bristol West.

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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