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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.

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The quiet civil war for control of the Labour grassroots machine

The party's newly empowered far left is trying to wrest control of local branches.

“Party time! PARTY TIME!” A young man wearing a Jeremy Corbyn t-shirt appears on screen and starts dancing, accompanied by flashing emojis of a red rose and a party popper.

“There’s only one game in town and it’s getting our boy J Corbz into Downing Street”, he announces, and to do that, he is planning to explain the “nitty gritty” of local Labour politics, and, promisingly, “give a little gossip on the way”. The man is Michael Walker of online left-wing outlet Novara Media, and the video has been watched more than 38,000 times on Facebook in just two weeks.

So why should Labour members suddenly be made to care about “structures, factions, conference, selections, rule changes”? “There were shedloads of people who got involved in the Labour Party for the first time by knocking on doors during the general election,” Walker explains, “but to make sure that the Labour Party represents their voices as it goes forward, they’re going to need to take getting involved in Labour’s bureaucratic structures seriously.

“There’s a risk that the party structures and bureaucracy will try and shut down participation in the Labour Party just like they did last summer, and we want to make sure that it can’t happen again.”

While the Parliamentary Labour Party is going into recess as a more united group since the election than it had been in the past two years, there is a quiet war still being fought at local level. Now that their man has proved that he could exceed expectations and turn Labour into a solid opposition, Corbynites want to make sure that the centrists cannot keep a hold on the internal party machine.

This involves projects like Walker’s catchy videos, and Momentum’s Your Labour Conference website, which encourages members to get interested in the election of the conference arrangements committee, in order to have more of a say on what gets discussed at the party’s annual conference.

“We recognise the fact that sometimes the Labour Party can be a bit of a labyrinth and something which can be pretty hard to work out, and we want to push people forward and help them get more involved,” a Momentum spokesperson says. “We’re trying to make it more open and more accessible to younger people and help people understand what’s going on.”

With tens of thousands of people joining Labour over the past few months – including around 20,000 since the election – their intentions seem noble: the Labour party internal structure is, after all, notoriously complex. However, it isn’t clear how the existing members who are involved in local organising – a lot of whom are or were until recently sceptical of Corbyn – will deal with this new influx of activists.

“Corbyn supporters are no longer the underdog in the party, and understandably people who joined recently are highly motivated to get their opinions across, so they’ve been turning up in droves at local meetings,” says Richard Angell, the director of Blairite organisation Progress.

“They’re not brilliantly organised but they’re there, and they turned up with this sense of 'we told you so', so they’re starting to win things that they wouldn’t have before the election.”

Centrist and centre-left Labour factions have often been the most organised campaigners in constituency Labour parties, and they’re now worried that if they were to get ousted, the party would suffer.

“Lots of our members are the people who hold the CLPs together – lots of people turned up in certain places to campaign, and the people who organised the clipboards, the data, did the work to make that happen are still a network of moderates,” Angell adds. “If Momentum tried to sweep them away in a vindictive wave of jubilation, it would backfire, and that’s what they have to think about now.”

Though the people at the helm of Momentum have never explicitly called for a takeover of the party at local level, some CLPs are struggling with bitter infighting. Lewisham is home to some of these battlegrounds. With three CLPs in the borough, the local Momentum branch is trying to gain more power in the local parties to implement the changes they want to see at that level.

“There’s an organised left-wing presence in all three CLPs in Lewisham,” a local Momentum organiser, who did not want to be named, says. “We want the CLPs to become outward-looking campaigning bodies, and we want them to be functionally democratic.”

What the branch also wants is to have a radical rethink of what Labour does at council level, and the activist was critical of what the councillors have been doing.

“Under the right-wing, Lewisham CLPs never really campaign on anything – they’ll occasionally have these set pieces, like the Labour day of action on education, which is good, but in reality there’s no one going campaigning on anything,” he says.

“The other thing is about the record of the council - no-one would deny that Labour councils are in a difficult situation, in terms of getting cut again and again and again, but equally at the moment, the attitude of a lot of Labour councils in Lewisham at least is 'it’s not just that there’s nothing else we could do, we’re actually going to go further than the Tories are demanding'."

“It’s not just that they’re saying 'oh, there’s not really anything we can do to fight back against cuts' but it’s also that they’ve actually absorbed all the neoliberal stuff.”

The response to these allegations from a long-term Labour member, who wants to remain anonymous but is close to the currently serving councillors, was unsurprising.

“It is utterly absurd to suggest that councillors want to cut services – Labour members stand for council because they want to stand up for their community and protect local services,” he says. 

“As for campaigning and taking on the Tories, it was the 'right-wing' Lewisham Council which took the government to the High Court over their plans to close Lewisham Hospital – and won. The 'right wing' CLPs worked tirelessly with the Save Lewisham Hospital campaign, and we won.”

According to him, Labour is doomed to fail if it doesn’t unite soon, and he worries that left-wing activists may be getting carried away. “The vast majority of members in Lewisham are really pleased with the result and with the way the party pulled together – locally and nationally – for the election campaign,” he says.

“At the second members' meeting after the election, we had a discussion about how we all needed to carry on in the spirit of unity that we'd recently seen, and that if we did so, we have a good chance of seeing a Labour government soon.”

“It's a shame that some people want to label, attack and purge fellow members, rather than working together to beat the Tories. The more they focus on internal, factional in-fighting, the less chance we will have of seeing a Labour government and ending the cuts.”

Beyond the ideological differences which, as the election showed, can mostly be smoothed over when the party senses that it’s getting close to power, an explanation for the Labour left’s occasional bullishness could be its sense of insecurity.

After all, the wave of new members who joined after Corbyn became leader was hardly welcomed by the party’s mainstream, and the narrative quickly turned to Trotskyist entryism instead.

Momentum also spent many of its formative months being treated with suspicion, as a Trojan horse aiming to get MPs deselected, which is yet to happen two years on. Painted as the opposition to the opposition, activists from the Labour’s left had become used to being party pariahs, and need to figure out what to do now that they are in a position of power.

“They’re behaving like an insurgency still, but they’re in charge”, says Angell. “It’s quite a big change in mindset for them, and one I don’t think they’re really ready for.”

“We have shown that we will campaign for the Labour Party anywhere in the country, whoever the candidate is, to try and get the best result in a general election, and there is no acknowledgement of that from them at all.”

This was, amusingly, echoed by the Momentum activist – if there is one thing all factions agree on, it seems to be that the Labour left needs to figure out what it wants from the party machine it’s in the process of inheriting.

“Momentum nationally had a very good election, it mobilised a lot of people to go to marginals, and got a lot of people involved in campaigning, and that’s a step forward, to go from getting people to vote Corbyn to getting them on the doorstep,” he says, “but it’s another step from actually having a vision of how to transform the Labour Party.”

Marie le Conte is a freelance journalist.