The Labour Party was congratulating itself yesterday on having joined with Tory rebels to defeat the Tory-led government by voting to cut the EU budget. In truth, this was sheer opportunism. While the two Eds (Miliband and Balls) may believe that supporting belt-tightening in Europe is good populist politics, in truth, Labour has shot itself in the foot.
Why? Because the vote was not about whether the British hate Europe—doubtless many do and will continue to rally round the Daily Mail. Rather, it’s a vote about the principle of adopting further deflationary policies.
By voting to cut the EU budget, Labour is aligning itself with budget cutters throughout the EU—in the main, centre-right parties. With euro-zone unemployment now above 11% (in some member-states above 25%!) and Europe headed for even deeper recession, any sensible progressive politician should be shouting out for co-ordinated fiscal expansion. What’s needed is the opposite of budget cutting—a far larger EU budget which could be used to reflate the economy and transfer resources towards the neediest regions.
Granted, under current arrangements, the EU budget is nearly useless as a vehicle for driving reflation. Bright economics-trained shadow ministers like Rachel Reeves and Chuka Umunna—even the Pro-EU Shadow Minister for Europe Emma Reynolds—understand this and know what needs to be done, but sadly are forced to toe the party line.
But whether it’s about Britain or about Europe as a whole, it’s time to repeat the message loud and clear—balls to deflationary policies in the midst of recession!
#1 by Victor on November 2, 2012 - 7:57 pm
If the Germans are really about reforming and restructuring Europe´s competitiveness they should be pushing for radical changes in the EU´s budget.
Current Cohesion, Agricultural, Social, Fisheries and Research spending is for the most part wasted in ineffectual projects, as is so called foreign “Development” aid.
Interesting that even the press doesn´t discuss this, instead focusing on threats of “veto”.
#2 by Karsten Lucke on November 2, 2012 - 9:42 pm
A multispeed EU with a core group & Goodbye Britain
http://kielspratineurope.eu/?p=1099
#3 by jon livesey on November 6, 2012 - 2:27 am
That’s the real point, isn’t it. At root the EU is anti-British and its supporters are more interested in anti-British sentiment than they are in saying anything positive about the EU itself.
#4 by Patrick on November 7, 2012 - 12:13 pm
Nonsense. Now that Britain has shifted its attitude towards the EU from benign disinterest to outright hostility, it has to leave in order that we may continue.
The cuckoo in the nest has become the guest who has long outstayed his welcome, rather like an elderly relative at a party who complains about the music, guests, food etc.
#5 by Marc on November 9, 2012 - 1:03 am
Britain would be better off, and this ‘core group’ would be nothing but an economic suicide pact.
Remember how you antidemocratic Eurolovers said those who didn’t join the Euro would get left behind? LOL! The Euro is clearly collective madness and has driven millions into unemployment and poverty. What a success story /sarcasm.
#6 by jon livesey on November 6, 2012 - 2:25 am
This is a remarkably confused blog entry. In the first place, in a Parliamentary system opportunism is quite common. For Labour to align itself with Tory rebels is nothing new.
But the author’s interpretation of the Labour vote is downright perverse. He says that b y voting as they did, Labour has aligned itself with “the budget cutters”, presumably an allusion to the self-defeating nature of eurozone austerity.
But those aren’t the budget cutters in question. Labour didn’t vote to impose more austerity on Greece and Spain. It voted to cut the *EU* budget, which is a zero-sum game.
Whatever the EU budget is, it is extracted from national economies, so cutting it doesn’t have at all the same economic effects as cutting national budgets.
#7 by Marc on November 9, 2012 - 1:02 am
So, why should my country Netherlands make further spending cuts just so unelected Eurosoviet apparatchiks can spend the money in some other country? I think not.
The financial system of the western world is unsustainable, the west is as good as bankrupt and some idjits want to borrow more so more can be spent. What lunacy!
#8 by Marc on November 9, 2012 - 1:06 am
The cuckoo in the nest has become the guest who has long outstayed his welcome, rather like an elderly relative at a party who complains about the music, guests, food etc.
Rather: Britain is finally realizing the EU is a crazy suicide cult. To get out is wise.
Better off out! Let France cover for the loss of Britain’s net contribution… LOL!
#9 by Mike Hanlon on November 12, 2012 - 1:53 pm
So Labour should have agreed to increasing the EU budget despite it being “nearly useless as a vehicle for driving reflation”. Makes a lot of sense. Not. Generally, where is the money for fiscal expansion coming from? That’s the problem anyone other than a fantasist is grappling with. Just about every country is still teetering on bankruptcy, nevermind capable of paying huge amounts extra to the EU budget (billions of which in spending is questionned annually by auditors) so that it can be transferred to “neediest regions”. On the democratic front, by what EU process are such needy regions defined? Should Ireland go bust so Greece can stay in the euro? I’m afraid the 1950s-styled EU centralisation model you are clinging to Prof Irvin is long past its time. Move on!
#10 by Purple on November 12, 2012 - 10:30 pm
There is a fundemental problem with the EC. It is a super bureaucracy that believes in balanced budgets which reward banks for being stupid and requires tax payers to foot the bill.
Further, economists upon whom the EC depend are of the stone ages and believe that financial institutions take preference to liberty, freedom in its many non financial forms, and that national legislation in Germany is more important than that of any other member state.
#11 by Susan on November 14, 2012 - 10:54 am
I still think that EU would do much better in the shadow of competition because that now all of them are united are blaming one another it is better they were good enough alone and competing against one another ,at least they were good then , i mean look at the unemployment rate it is massively high enough.
#12 by jake on November 27, 2012 - 10:29 pm
until the eu produce an audited set of accounts, they shouldn’t receive another penny of public money.
#13 by Susan on November 28, 2012 - 6:39 am
While in competition EU might do better but how do we make the competition spirit get awake in EU is a very big question ,how do these countries leave their laziness and start to work equally in a balanced for ,for that they would have to share common funding and interest of work which i do not think the countries which are already ahead will be willing to share